When we work with our NonProfit clients, one of the biggest struggles they face is properly accounting for cost allocation.
From staff to board members, we often find a lack of detail and planning when it comes to cost allocation. What you don’t know CAN indeed hurt your organization when it comes to State Agency approval.
Let’s talk about why you need to have a deep understanding of this process. We never want an organization to lose their state funding, risking everything for lack of accountability.
Cost Allocation: What Does That Mean?
Cost allocation is an accounting method used to determine cost to cost objects. In nonprofit accounting, it is used to determine the percentage of shared items that should be billed to each program. Read more