The Productivity Commission recommended the adoption of a National SCOA to streamline the financial reporting process for not-for-profit organisations.
To be introduced in July 2010, the National Standard Chart of Accounts (SCOA) will be compulsory for all State and Federal Government departments, but not-for-profit (NFP) organisations can decide for themselves whether they adopt the chart.
The chart will set out account numbers, names and definitions for reporting on items that require funding.
The Australian Council of Social Service said that it has been widely recognised that not-for-profit organisations spend far too much time on financial reporting requirements.