An Analysis of Accounting Practices for Zakat, Infaq, and Sadaqah in Lembaga Amil Zakat, Infaq and Sadaqah Nahdatul Ulama (LAZISNU) Parepare, Indonesia: Standardization and Proposed Solutions

Abstract

The standardization of accounting reporting is important for the purpose of documentation. Such standardization is important, especially when it is related to Islamic instruments, such as zakat, infaq and sadaqah. While certain institutions have already standardized their accounting reporting for zakat, infaq and sadaqah, it is not so apparent when it comes to Lembaga Amil Zakat, Infaq, and Sadaqah Nahdatul Ulama (LAZISNU) Parepare in Indonesia. It seems that LAZISNU is depending on simple bookkeeping based on incomes and expenses made as balance. This research identifies the practice of bookkeeping as carried out by LAZISNU, with the aim to upgrade the practice of their financial statements according to the accounting standard of PSAK 109. A qualitative case study approach was used in this research. The findings showed that the practice of accounting in LAZISNU depends on simple bookkeeping that only shows cash receipts and their disbursements. A recommendation was prepared for financial statements that can be applied by LAZISNU Parepare by preparing a financial position statement (balance sheet), changes in funds, changes in assets under management, cash flow statement, and summary of accounting policies. By improving such financial statements, LAZISNU may disclose proper, accountable and transparent reports to the stakeholders, particularly the muzakki and the government.