Local CPAs in South Abilene explain a basic accounting concept:
In Abilene, business enterprises and not-for-profit organizations obtain the resources they need from various sources. Business enterprises and some not-for-profit organizations sell the goods and services they produce for cash or claims to cash. Both buy goods and services for cash or by incurring liabilities to pay cash. Business enterprises receive resources from investments in the enterprise by owners, while not-for-profit organizations commonly receive significant amounts of resources from donors who do not expect to receive either repayment or economic benefits proportionate to resources provided, according to our south Abilene CPAs.
Those contributions are the major source of resources for many not-for-profits organizations in Abilene but are not significant for other not-for-profit organizations or for most business enterprises and CPA firms.
