The Must Know Accounting Terms for Supervising Fund Using Church Software

Posted by churchtracer on October 17th, 2018

The vast increase in non-profits targeting the different sections of the society has affected the donations in the churches adversely. It becomes easier to catch the fancy of the members when they timely receive the details of their donations. The contribution records help the members in preparing the financial statements at the end of the year.

An ideal church management system permits the staff to manage the ledgers and funds associated with the accounts.

Here are the basic terms one should understand for fund systematically organizing the funds -

This is a fund created in the contribution division of the Church Management Software . It tracks the giving of the members and enlightens them when, where and how their donations are processed.

As the accounting year ends the fund lists the contributions made in the entire year in different areas.

This fund deals with the monetary transaction; it is the pathway for the inflow and outflow of financial resources. The cash is recorded in the way it is utilized as - unrestricted, restricted for a short term or long term.

This is done according to well-defined accounting rules. The year 1993 introduced some of the key phrases dealing with assets and liabilities which are frequently used in the church management software. Here is a brief prologue-.

Unrestricted Net Assets - These are net assets on which there is no restriction from the donors or law. They can be used for any purpose as the donors have not specified how his/ her endowment should be used. Example General Funds.

Temporarily Restricted Net Assets - These either get obsolete after a limited time or the use is restricted to a particular target. Example of timer restricted net asset is a check from the donor. It is an asset only till the date it can withdraw from the bank.