Equity Accounts (Type 3)

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When it comes to fund accounting, calculating a congregation’s net worth, or equity, means subtracting what you owe from what you own. In Shepherd’s Staff, this is done by subtracting the total balance of your Liability accounts from the total of your Asset accounts. We have included a report that does this for you called the “Balance Sheet.”

As a result, using Equity accounts in Shepherd’s Staff is not necessary.

However, there are some situations, such as tracking Fund balances from year to year or having special reserve Accounts to declare restrictions on how the congregation’s assets may be used.

If you do create your own Equity Accounts, do so only under the supervision of a CPA. You will need to discuss special steps that must be taken at the end of the year to properly transfer equity from the system fund balance to the Account.

  1. The equity accounts can be found in the Accounts grid.
  2. Access the accounts grid by going to “Accounts” in the menu bar, choosing Account Types, and the selecting “Equity.”
  3. You can also click on the “A” in the toolbar and change the account type filter at the bottom to “Equity.”
  4. To add an equity account, click the Add button.
  5. Type in the name of this account.
  6. Key in the beginning balance if there is one.
  7. Now choose or add the grouping categories you want. If you don’t choose to group this equity account, you will still need to pick a sequence number.
  8. When you are finished, click OK to save the account.

 

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