Net assets (also called "equity") are essentially everything that belongs to the organization, all its investments, money, and other valuables valued together with all liabilities (expenses) subtracted.
Most churches use the term "Natural Account" to refer to this section of their chart of accounts.
Net assets are recorded in a document called the nonprofit statement of financial position, which is the nonprofit version of the balance sheet.
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Church accounting is the organization, recording, and planning of finances for churches. It differs from other organizations because it relies on a system of fund accounting, prioritizing the accountability aspect…
Church Accounting: The Definitive Guide For Growth
We need to take a look at the net assets because this is typically called owner’s equity in most accounting software. This is a major difference between non-profit and for-profit accounting software. Churches aren’t owned whereas for-profit companies are.
A Church Chart of Accounts Explanation - Part 1 - Icon Systems
Unique accounting standards require that nonprofits report contributed income in one of two categories: with donor restrictions or without donor restrictions. These income classifications are determined by either the absence…
Managing Restricted Funds - Propel Nonprofits