# Non-Profit Workflow

Many accounting systems seem to assume that the workflow fits a certain type

of uses.  While the ability to impose a specific workflow (e.g., for a

bookkeeper who might make an error easily if the system doesn't require a

workflow), the  workflow should not be dictated.

## The "Unaccrued Invoice" Example

The easiest example I have of this relates to accruing income upon invoice

generation.  Non-profits very typically generate invoices as part of a

fundraising discussion *even though* the non-profit doesn't have a good faith

belief that the invoice will be paid.  Using an invoice to convince a donor

to make a donation is, in essence, just a fundraising strategy to pressure

for them to commit to a donation that the donor has hinted they might make.

Under GAAP, these invoices should **not** be accrued nor recognized, because

the organization doesn't have a good faith belief that the income is

forthcoming.

Many accounting systems assume that the user would never possibly generate an

invoice without realizing the income immediately.  In most for-profit setups,

this is true, but for non-profits, there is good reason to generate invoices

before accruing the income.  In fact, if you're  generating an invoice merely

to "inspire" a donation, it's wrong to accrue that, since you don't have a

good faith belief that the invoice will be paid.