Impact 100 - Finance 101 for Non-Profits Deck - Page 7

What is Accounting ?

Accounting is the measurement of a business . The “ process ” in which to record income and expenses , assets and liabilities of your business . Financial Statements are Report Cards of your non-profit .

How does this “ process ” work ? And where does the data come from ?

• Accounting Software – QuickBooks , Freshbooks , Xero

• By hand – ledgers , Excel sheets maybe a shoebox of receipts

How does the data get created ?

• Cash flow – in ’ s and out ’ s of your bank accounts

In ’ s : Revenue / Income earned .

Out ’ s : Costs of running your business ( overhead expenses and COGS )