* In traditional accounting, these do not appear as separate account types and are not required to complete a chart of accounts. Gifts and Transfers are separate account types in Accounting for Nonprofits version 6, and Gains and Losses are additional account types available in The Financial Edge.
The basic accounting equations are:
Balance Sheet: Assets = Liabilities + Fund Balance (Net Assets)
Income Statement: Net Surplus/Deficit = (Revenue) - (Expense) + (Gifts) - (Transfers) + (Gains) - (Losses)
Note: During a new installation only the required categories must be defined.
If converting from Accounting for Nonprofits to The Financial Edge at least one Transfer account is required.