Summary
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.
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Most churches use the term "Natural Account" to refer to this section of their chart of accounts.
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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
jitasagroup.com
Summary
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
iconcmo.com
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
propelnonprofits.org
