ACCT 120 | Introduction to Nonprofit Accounting, Part II: Expenses, Fixed Assets and Net Assets

Overview

Properly recording and reporting on expenses will help your organization analyze how resources are used and make informed decisions regarding the best ways to employ these resources.

In this course, we start with basic best practices for nonprofit organizations to categorize expenses. We will also learn about functional-expense reporting and other accounting issues relating to expenses and net assets. You will walk through real nonprofit examples that will help you understand the recording of expenses.

This class is right for you if you are new to the nonprofit sector, nonprofit accounting, or your position as staff or board member.

This course was formerly numbered as ACCT 205. It has been changed to better reflect the content level and intended audience.

Key Concepts

• Chart of accounts, functional classification, and grant classification
• Expenses, including functional allocation of expenses
• Fixed assets
• Leases (including new major accounting standard update on the treatment of leases)
• Net assets

Learning Objectives

• Determine how to set up your accounting system to best record expenses.
• Define key nonprofit accounting terminology relating to functional allocation of expenses.
• Explain the accounting for fixed assets and the new lease accounting rules.
• Describe the different types of net assets.