Nonprofit Management All-in-One For Dummies

Chapter 4

Balancing the Checkbook: Donations and Expenses

IN THIS CHAPTER

Understanding the checkbook register

Taking in and tracking donations

Paying bills and recording expenses

Reconciling your checkbook register

Ferreting out and fixing errors

The center of every transaction in nonprofit organizations starts and ends in the checkbook register. In fact, you can find the keys that unlock your nonprofit’s financial position in the checkbook register and bank statements. Having more money than you thought you had in your checking account is okay, but having less money can cost you if a check bounces.

The bank records every donation deposited and expense paid out of your checking account and sends you a monthly statement showing this activity. All deposits are considered credits (additions) to your account, and all withdrawals are considered debits (subtractions). The difference between credits and debits equals your checking account balance.

Having a checking account saves you time ...