Moderators: Moderators, Tech Support
Our Treasurer manually moves temporary restricted income into the correct bank funds on a weekly basis. So, do I need to keep any Equity accounts in PC? It seems like double work to me and I don’t see the benefit if the Treasurer continues to do this weekly process.Don't look at 'Equity' accounts in the same way as done in the corporate world, these are FUND BALANCES. Do you have to track what is in each bank fund? Are these bank funds different accounts? Are you tracking those accounts, if so, where? How do you provide reports for the church board and congregation? Where do these reports come from?bridgetrochon wrote:I am trying to clean-up the Chart of Accounts that was set up by our previous bookkeeper. I don’t quite understand how PowerChurch (PC) uses Equity.
We don’t have any permanent restricted funds, only temporary restricted funds.
Thanks, Bridget
Equity. How much the organization is worth. From the accounting equation above, we know that equity is equal to the total of your assets minus the total of your liabilities. In for-profit accounting, this type of account would be known as the owner's or stockholder's equity, or retained earnings. Non-profit accounting uses different terms for equity. PowerChurch Plus allows you to choose between three different terms: Net Assets, Fund Balance, or Equity. All of these terms mean the same thing.
Current accounting trends are for non-profit organizations, like churches, to use the term Net Assets. However, in this manual we are going to use the word Equity because it is the most widely understood term. You can select the term your church wishes to use and have it appear in your financial reports (refer to Accounting Setup Options ). You may have more than one equity account to represent the balances in each of your restricted areas. Refer to Restricted Contributions for more information about contribution income.