Cover image for Accounting for libraries and other not-for-profit organizatons
Accounting for libraries and other not-for-profit organizatons
Smith, G. Stevenson.
Personal Author:
Second edition.
Publication Information:
Chicago : American Library Association, 1999.
Physical Description:
xii, 322 pages : illustrations\. 24 cm
General Note:
Rev. ed. of: Accounting for librarians and other not-for-profit managers. 1983.

Includes index.
Format :


Call Number
Material Type
Home Location
Item Holds
Z683 .S62 1999 Adult Non-Fiction Central Closed Stacks

On Order



Perhaps not your favourite part of being a librarian, accounting is nevertheless a critical component of the business of running a library, and librarians with a working knowledge of accounting are more effective decision-makers. G. Stevenson Smith's Accounting for Libraries and Other Not-for-Profit Organizations provides practice accounting information for those librarians who don't want to be accountants, but do want to keep track of the bottom line. This update of the classic text provides the fundamental principles of library accounting for practitioners.

Reviews 1

Library Journal Review

Not every librarian needs to understand accounting, but for those who do, this is a welcome revision of Smith's classic textbook. Smith (accounting, West Virginia Univ.) carefully walks the reader through basic accounting principles and practices using pertinent examples and exercises. He clearly develops concepts and explains why the modified accrual method (MAM) is preferred for libraries over the cash basis or accrual method. Basic fund groups are examined, and the entire book builds to an analysis of combined financial statements, audits, and the use of financial and performance ratios. Smith's Managerial Accounting for Libraries and Other Not-for-Profit Organizations (ALA, 1991) is more concerned with internal financial reporting. A few other works are broader in scope: Madeline J. Daubert's Financial Management for Small and Medium-Sized Libraries (ALA, 1993), Ann Prentice's Financial Planning for Libraries (Scarecrow, 1996. 2d ed.), and Betty J. Turock and Andrea Pedolsky's Creating a Financial Plan (Neal-Schuman, 1992). Recommended for library administrators lacking a business or accounting background.√ĄSkip Auld, Chesterfield Cty. P.L., VA (c) Copyright 2010. Library Journals LLC, a wholly owned subsidiary of Media Source, Inc. No redistribution permitted.

Table of Contents

Prefacep. xi
Part 1 The Foundations of Fund Accountingp. 1
1 Where Are We Headed?p. 3
Who Should Use This Book?p. 3
Why Set Accounting Standards?p. 5
Who Sets Accounting Standards for NFOs?p. 5
What Is Fund Accounting?p. 7
What about Audits?p. 8
Summaryp. 8
2 Those Pesky Debits and Creditsp. 10
What's an Asset?p. 13
What's a Liability?p. 14
What's the Fund Balance?p. 16
The Accounting Equationp. 17
Analyzing Debit and Credit Changes in Assets and Liabilitiesp. 18
Using Transaction Analysis with Assets and Liabilitiesp. 19
What Are Revenues, Expenses, and Expenditures?p. 24
Analyzing Debit and Credit Changes in Revenue and Expense Accountsp. 27
Using Transaction Analysis with Revenues and Expensesp. 28
Analyzing Transactions, Journalizing, and Postingp. 33
Summaryp. 35
3 Which Accounting System Are We Using?p. 39
Cash Basis versus Accrual Methodp. 39
Accrual Basis versus Modified Accrual Methodp. 41
Accounting under the Cash, Accrual, and Modified Accrual Systemsp. 47
Adjusting Entriesp. 55
Financial Statementsp. 59
Comparisons between Accrual- and Cash-based Financial Statementsp. 61
Modified-Accrual Statements Compared with Cash and Accrual Statementsp. 66
Why a Fund Balance Rather Than Net Assetsp. 68
Audits of NFOsp. 70
Summaryp. 73
4 Making Budget Dollars Make Sensep. 78
Estimated Revenues and Appropriationsp. 79
Estimated Revenues, Revenues, and the Revenue Ledgerp. 89
Encumbrances, Reserve for Encumbrances, and Expendituresp. 92
Summaryp. 100
5 End of a Year: Closing Entriesp. 104
Closing Temporary Accountsp. 105
Outstanding Encumbrances in Subsequent Yearp. 111
Review of the Fund Accounting Cyclep. 114
Summaryp. 115
Appendix Closing Accounts with Outstanding Encumbrancesp. 118
Part 2 Accounting for the Major Fund Groupsp. 121
6 Introduction to the Twin Funds: The General and Special Revenue Fundsp. 123
The Financial Statementsp. 124
Combined Statement of Revenues, Expenditures, and Changes in Fund Balancesp. 125
The Balance Sheetp. 127
Statement of Revenues, Expenditures, and Changes in Fund Balance--Budget and Actualp. 132
Notes to the Financial Statementsp. 134
Summaryp. 141
Appendix Using the Accrual Methodp. 142
7 The General Fund and Special Revenue Fund with Journal Entriesp. 150
Allotmentsp. 150
The General Fundp. 152
Special Revenue--State Grant Programp. 169
Summaryp. 171
Appendix The Financial Statementsp. 172
8 The Capital Projects Fund and the General Fixed Assets Account Groupp. 178
The Capital Projects Fundp. 179
General Fixed Assets Account Groupp. 190
Summaryp. 202
9 Endowment and Agency Fundsp. 206
The Trust Fund: An Overviewp. 207
Trust Fund Financial Statementsp. 209
Typical Entries for Trust Fundsp. 220
Investment Poolsp. 228
Agency Fundsp. 231
Summaryp. 233
10 Combined Financial Statements and Analysis of the Results of Performancep. 235
Combined Financial Statementsp. 237
Analysis of the Financial Statementsp. 253
Financial Ratio Analysisp. 254
Performance Ratio Analysisp. 261
Summaryp. 270
Answers to the Exercisesp. 273
Glossaryp. 303
Indexp. 315