Flashcards in FINANCE FINAL Deck (18)
Know these abbreviations...
FYE: Fiscal Year End
YTD: Year to date
I & E: Income and Expenses
GL: General Ledger
AP: Accounts Payable
PC: Petty Cash
AR: Accounts Receivable
FB: Fund balances
Managing our resources to give God glory and benefit humanity. The Biblical view of stewardship is a way of growing in Christ and is an
important part of ongoing church life.
Procedures and policies that a business has in place to make sure the assets and records of the business are kept free from theft and manipulation.
Protect the assets of a company.
Make accounting data reliable.
Parts of a balance sheet
Assets+Liabilities=Equity or Funds
Cash in bank
Financial Reporting Basics
Statement of financial position (assets, liabilities, net assets), Statement of activities, Statement of cash flows, budgeted financial statement.
Imposed by civil law on non-profit organization. Care and loyalty to the church. Duty to spend money in good faith and in a manner that is in the best interest of the corporation.
Cash Flow Terms
Negative Cash flow
Positive cash flow
Having your financial records audited. To determine that proper safeguards for assets are maintained. To determine compliance with territorial policy and procedures. To evaluate effectiveness of accounting, financial, and other operating controls.
1. The person that approves purchases should not prepare checks for payment.
2. The individual who prepares the check should not be authorized to sign them.
3. The person authorized to sign checks should not be the person who approves purchases or payments.
CO requests the check, Command finance council approves, and bookkeeper cuts the check.
Annual Stewardship Campaign
A stewardship campaign is an organized program to educate and motivate the people in the local church to spiritual faithfulness.
Discuss reports on a monthly basis: fund activity reports/trial balance report.
Personal accounting system matches the bank accounting system.
Statement of the assets and liabilities and funds of a business at a particular point in time. Details the balance between income and expenses.
A budget prepared in advanced of possible changes to your company that would affect your business' operating structure or finances. It forecast revenues and expenses in advance.
Financial Transparency, 5 things
1. Conduct annual audit.
2. Share financial information with congregation and boards.
3. Internal controls.
4. Prevent fraud.
5. Foster an internal culture of openness.
Opportunity, Rationalization, Financial Pressure.
What are two important finance reports
Balance Sheet and Budgeted financial Statement (income & expense report)