![]() You can’t group similar accounts together if all the numbers are already taken! Think about how your needs might change in the future, and leave gaps between your account numbers so you can add new accounts later.īelow is a sample chart of accounts for nonprofit organizations. It’s easier to read and understand your financial reports when your accounts are listed in a logical order. ![]() If you need more detailed layers of organization, you can add class codes. You don’t need separate accounts for paper, pens, envelopes, and staples you can just have one account for office supplies. When you’re numbering your accounts, follow these three rules: Revenue from donations or sales should be in the 4000 range, and expenses for programs, utilities, salaries, and everything else should be numbered as 5000 or above. Your organization’s restricted and unrestricted net assets should be numbered in the 3000 range. Liabilities (like loans, mortgages, and accounts payable) should be in the 2000 range. This means that any assets owned by your nonprofit (like bank accounts, investments, property, and equipment) should be numbered in the 1000 range. But in general, your COA should follow some standard guidelines and numbering conventions.Ī chart of accounts is commonly numbered as follows: Every nonprofit organization has a unique COA that depends on your specific programs, revenue sources, and activities. The chart of accounts (or COA) is a numbered list that categorizes your financial activity into different accounts and subaccounts. When it comes to accounting, the first step is to create your chart of accounts. Whether you’re launching a brand-new nonprofit or just trying to get more organized, it can be hard to know where to begin.
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