The World's Your Stage

READING AND UNDERSTANDING FINANCIAL STATEMENTS

Some people, perhaps artists in particular, think accounting is the most boring subject in the world. You may be one of these people, and you may be tempted to skip this chapter. We hope you won’t, though, because a little accounting knowledge can serve you very well. Why? Without modern double-entry bookkeeping, all businesses— including nonprofits—would grind to a halt. Management would be at sea if an organization didn’t have accounts to show whether it was on a path toward prosperity or oblivion. You may never be a manager but you should have some understanding of your organization’s financial ...