This church balance sheet sample will teach you how to create a church financial statement. A balance sheet is a summary of your finances, including income, expense, balance, assets, liabilities, and equity. It will help you learn how to build your church financial strength and eventually build your church into a thriving, self-sustaining, profitable organization.
To build your church balance sheet, you need to know what types of assets are in your church. These include tangible assets and non-tradable assets. The tangible assets are the tangible things that you own and the non-tradable assets are the buildings, equipment, and other properties that you have bought or leased. The tangible assets are the real thing that you can put a cash value on, while the non-tradable assets are merely a claim on future profits.
Of course, the church can grow without physical property and real estate. However, if you have some physical assets, then it makes good sense to determine how much that asset is worth to you. You can learn more about building your church balance sheet by looking at the main asset types – tangible assets and non-tradable assets.
When we discuss tangible assets, we mean any tangible thing that you can use to buy something from another person, such as a house or other tangible assets. Usually tangible assets include money, automobiles, furniture, tools, vehicles, and other tangible goods. Non-tradable assets are intangible things that have no monetary value, such as copyright protected works and the equivalent of certificates of deposit.
When you look at your tangible assets, you will see that all of them are owned by you personally. The only difference is that the tangible assets are tangible, whereas non-tradable assets are not. Your non-tradable assets are claims on future profits.
The church balance sheet will teach you how to identify and report tangible assets that belong to you personally. By the end of this church balance sheet sample, you will be able to identify tangible assets and determine the fair market value of those assets.
For example, if you own a tangible asset like a house, you will report its fair market value. If your tangible asset includes items that have their monetary value hidden away, for example, investments in stocks and bonds, you will report these as part of your assets that you own personally.
This financial statement can help you figure out where to spend your money so that you don’t get into debt, or where to draw the line between tangible assets and non-tradable assets. Understanding the way your church finances work is essential for running a successful, financially strong church.