Definition & Purpose:
The Statement of Financial Position shows the assets and liabilities of the Church for the fiscal year. It reports on a Church's assets (what is owned) and liabilities (what is owed).
It is the equivalent of a balance sheet for a for-profit organization, and serves as a snapshot, providing a comprehensive picture of a Church's financial situation at a given time, comparing debt to equity or comparing current assets to current liabilities.
Structure:
The format of the statement of financial position follows the basic accounting equation, which states that assets equal the sum of all liabilities and equity.
Tags:
Before using the Statement of Financial Position report you will need to assign each account to one of the Tags within the Tag Group to categorize it for the report. Below is the process to assign the Tags.
- On the Financial Reports view, in the upper-right above the list of reports, click the Manage Report Tags gear.
- Click in the Statement of Financial Position Tag Group box.
- You will see a list of all of the available categories for this report. These are the Tags.
- Each will have a one-line description to help you identify which, if any, of your accounts fall under this category. Not all Tags will necessarily apply in your particular situation.
- Click the gear icon next to the name of a given category.
- A side bar will appear on the right of your window listing all of the accounts that are relevant to this report (Income, Expense, and Fund Income and Expense if you use Equity Backed Funds).
- Click to select each account that belongs to the Tag in question. Click again to de-select any accounts that should not apply to the Tag. Note: Clicking a parent account will select or de-select all of the child accounts under it. If you want to select one but not another of the child accounts, click them individually.
- Then click the Update button at the bottom of the list.
- Then click the gear icon on the next Tag you need to apply accounts to and repeat steps 5 & 6 above.
- Accounts that were selected under a previous Tag will be highlighted, to avoid assigning an account to more than one Tag.
- Continue until all of your accounts have been assigned to a Tag.
- If there are Tags that aren't relevant to any of your accounts, simply skip assigning anything to those Tags.
Report:
Once all of the accounts have been assigned a Tag, click back on Financial Reports at the top of the window, and click the > icon for the Statement of Activities report to generate the report and verify that everything was assigned correctly before generating your report.
Note: This report is only intended for use at the end of the fiscal year, so you won't be able to generate it for the current fiscal year.