Accounting aspects of the financing of branch organizations in the agrarian sector
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Author: Georgieva, Vanya
When establishing a branch organization, a question comes up for a reason: Where will the funding come from, in order for the organization to achieve its goals? The answer to this question is different and depends on many factors: management quality, the organization capacity of the organization, the skill for using different financial sources, etc. It is well known that the branch organizations in the small municipalities are doomed to a difficult financial situation, and are with restricted chances of development, mostly because of the lack of managing and financial capacity. This is the reason why when establishing an organization, the financing sources have to be defined and to determine who, when, and what will do, in order to receive the financing, to realize the planned activities, and the achievement of the goals to begin. The main sources of financing of a branch organization are: constituent and annual membership fees; incomes from agricultural activities; incomes from project activities; subsidies from the main and local budgets; donations from third parties; sponsorships. The purpose of the current research is to analyze and evaluate some of the basic problems in the accounting of the different finance sources of the branch organizations in agriculture. That will lead to coming up with reasonable suggestions for improving the accounting, with a view to the needs for accounting information.