Don’t forget, though, that a surplus is not a profit, nor is a deficit a loss—governments aren’t in the business of hoarding money (nor are they “in business” at all, as it were). Unlike a for-profit company, if a government finds itself operating at a large surplus (profit), it will Read more…
Tax-exempt nonprofit employees are still subject to employment taxes, and your nonprofit could still be subject to sales, real estate and other taxes depending on which state it’s based in. Nonprofit-friendly accounting software shouldn’t just allow you to create professional-looking budgets. They should also let you track how your income Read more…
The expanded accounting equation can be rearranged in many ways to suit its use better. With that being said, no matter how the formula is laid out, it must always be balanced. Short and long-term debts, which fall under liabilities, will always be paid first. The remainder of the liquidated Read more…