You must be thinking, how to draw a distinction?
Here grant record-keeping comes in handy… it helps you identify the nature of income. So, if your organization completely depends upon contributions, this charging method is something that should be on your radar. Honestly, it can assist you in tracking grant-related expenses and revenue so that you can fulfill your mission while maintaining exceptional relationships with stakeholders and donors.
But there is a misconception that the general ledger can do the same for you. Wrong! Grant accounting helps in reconciling accounts on daily basis. Moreover, it ensures that the revenue and expenditures are within the budget limits – whereas the typical features of the general ledger cannot handle it.
