Accounting Principles for Microfinance Institutions

Based on the premise that microfinance institutions (MFIs) have to be sustainable for long-term impact and that sound accounting is one of the pillars of financial health for an MFI, the Accounting course introduces MFI managers to the basics of accounting and how to create the most commonly used financial statements like the Balance Sheet, the Income Statement, and the Chart of Accounts. During this three to four day course, managers gain an understanding of accounting principles, methods and procedures through exercises, group activities and the accounting game “Balancing Act”.

DISCLAIMER

CGAP is pleased to make the course materials from the CGAP Skills for Microfinance Managers course series publicly available. Although the course materials have been well tested and revised CGAP cannot ensure that the materials and all calculations are fully accurate. The microfinance industry continues to evolve and new standards continue to emerge. As a result, the course materials may not reflect the latest practices in the microfinance industry.

Although CGAP has made every attempt to produce high-quality course materials, ultimately it is the technical skills, training experience and preparation of the trainers that guarantee the quality of the course itself and the successful transfer of skills and knowledge to course participants.

Please note that CGAP recognizes only those partners and trainers that went through its certification process as CGAP training partners from 1997 to 2008. Others who offer a course using materials from one of the CGAP Skills for Microfinance Managers courses should not refer to themselves as CGAP trainers or CGAP-certified.

CGAP also requests that all those who offer the "Accounting Principles for Microfinance Institutions" course use the following text in their marketing materials and course descriptions: " 'The "Accounting Principles for Microfinance Institutions' course is based on the materials developed by CGAP that are publicly available on www.cgap.org. CGAP is a leading independent resource for objective information, expert opinion, and innovative solutions for microfinance. CGAP works with the financial industry, governments and investors to expand access to financial services for poor people around the world.”