Nonprofit Management All-in-One For Dummies

Chapter 1

Starting with Basic Bookkeeping and Accounting

IN THIS CHAPTER

Going over basic bookkeeping and accounting terminology

Understanding your choices of accounting methods

Assessing your assets

Taking steps to protect against employee theft

Have you ever talked to computer support people about problems you’re having with your computer, and they started using words like API, ISP, BYOD, and other acronyms about which you don’t have a clue? If you’re like us, when people talk over your head, your brain shuts down. Every profession has its jargon, and accounting is no different. But the good news is that the jargon doesn’t have to be an impenetrable wall separating you from the bookkeeping and accounting tasks you need to master.

This chapter introduces you to accounting (including basic terms) and explains why you need to understand it and how it works. You also get started with managing your nonprofit’s books, selecting the most appropriate accounting methods for your organization, safeguarding against tax audits, and protecting your nonprofit’s physical and financial assets ...