For Profit Vs Non Profit Essay

Financial Difference between For Profit and Not-For Profit Organization
When an Entrepreneur want to start a business he or she has a wide range of decisions to make before beginning. One of the basic or first decision is if the business is for profit or not for profit organization. A for Profit organization basic or priority goal is to make profit while Non- Profit is a business whose priority is rendering services to the community such as food , water, health, shelter, education environmental needs like rare plants and animals survival. However is does not imply that a Non-Profit organization does not make profit. These two organizations have both similarity and differences. In similarity they are need good leadership, need money for the business to grow and survive, have goals and mission and both affect the growth of the society. In differences these two organization have different goals, types of ownership and record their financial activities differently. This essay will shed more light the financial …show more content…
A For profit organization financial report would typical start from a message from the business owner explain how the profit where made why it was that particular amount, how the money was managed with the hope to impress, their goals to make better products or services and generate more profit. However for a Non For profit organization it will show the statistics of the number of people helped and affected with a minimal amount of money used, how it affected the community, showing how successful their current programs are, and plans on opening new programs and helping more people. In term of tax, for profit organization must pay all taxes including federal, state, sales, property and income tax but a Non-profit organization exempted from paying tax if they follow some certain rules. A non-profit organization can be exempted from paying federal and state tax but still pay income