Whether your church is large or small, it likely has some fixed assets, so it’s important to know the requirements for tracking those assets. Accurate accounting is essential for stewarding your resources well. In this webinar, you will learn about church asset management and how to track fixed assets to demonstrate accountability in your church.
We will discuss the following topics:
- The fundamentals of fixed assets in advanced church accounting
- Calculating and comparing different methods of depreciation
- Allocating the cost of fixed assets, according to Generally Accepted Accounting Principles (GAAP)
- Maintaining a record of depreciation for each fixed asset
- How software can help you track fixed assets
There are many benefits to using good software for tracking fixed assets in your church accounting. Some of the biggest benefits include accuracy and efficiency. The software can help streamline your process since it will automatically apply monthly depreciation over the lifespan of each item. It’s easier to track a large volume of assets. It also reduces errors or missed journal entries.
You can easily do all these things with Aplos, which will make asset management easier for your church. In addition, Aplos allows for custom asset names and unique identifiers, automatically creates the journal entry that needs to be posted, and more. Try it for free.
Why would a church (non-profit) need to track depreciation of fixed assets? Isnt that solely for tax purposes? It seems fixed assets, such as PPE shouldnt even be included on a balance sheet partly because of the large discrepancy between cost and current value or replacement cost.
Thanks for the comment. Even though a nonprofit doesn’t need to show depreciation to have a tax benefit, it is still a best practice to track fixed assets and depreciation on your balance sheet to make sure you are following GAAP and FASB guidelines. It could also be needed if your organization decides to apply for a loan or is audited. Some organizations choose not to show it on their balance sheet, but tracking the value of your fixed assets is an important part of having a complete picture of the overall financial position of your organization since fixed assets are assets that hold a monetary value that could be liquidated.