A top local CPA in the Reno area explains basic bookkeeping:
A not-for-profit organization obtains and uses resources to provide certain types of goods or services to members of society, and the nature of those goods or services or the identity of the CPAs or individuals in south Reno who receive them is often critical in donors or other resource providers' decisions to contribute or otherwise provide cash or other assets to a particular organization. Many donors provide resources to support certain types of services or for the benefit of certain groups and may stipulate how often and when an organization may use the cash for other resources they contribute to it. Those donor-imposed restrictions on a not-for-profit organization in Reno may be either permanent or temporary.
More accounting terms defined:
Income statement: The income statement is composed of revenues, expenses, and net income for a given period of time.
Revenues: Arise from either the sale of goods or the performance of services, and usually results in an increase in either cash or accounts receivable.
Expenses: The cost of inventories sold, operating expenses such as rent, power and maintenance, and salaries paid to workers during a specified period of time.
Net income: The amount by which total revenue exceeds total expenses in the accounting period.
Income statement: The income statement is composed of revenues, expenses, and net income for a given period of time.
Revenues: Arise from either the sale of goods or the performance of services, and usually results in an increase in either cash or accounts receivable.
Expenses: The cost of inventories sold, operating expenses such as rent, power and maintenance, and salaries paid to workers during a specified period of time.
Net income: The amount by which total revenue exceeds total expenses in the accounting period.
- If revenues exceed expenses for the period, then capital will increase for the period.
- If expenses exceed revenues, thereby resulting in a net loss, capital will be decreased.