Is your nonprofit leasing space or equipment of some kind? If any lease you are under is for a term longer than 12 months, then you are in for a HUGE CHANGE this year in how you account for these leases on your books. The accounting gods issues an accounting standard that deals with leases (ASU 2016-2 and ASC 842 for the accounting geeks out there).
The bottom line is, the entire amount of your lease now needs to be booked as a liability on your books with a corresponding “right of use” asset shown as well. Making things more complicated, this new liability will need to be recorded as a loan with an imputed interest rate used to record a portion of each monthly lease payment as interest expense. Whether you are a nonprofit bookkeeper, a CPA, or simply doing the books for your nonprofit, you are now required to implement this change in order to be in compliance with generally accepted accounting principles. This represents the biggest change in years in accounting and will have dramatic effects to your financial statements.
Join this webinar if you are wondering:
- Does this really affect my little old nonprofit? (Spoiler alert: yes, it does!)
- Does this include things like cam charges, maintenance, taxes, etc.?
- What happens if I end my lease early?
- Where do I point the monthly rent checks to?
- Won’t this make my liabilities on my balance sheet look huge now?
- Will I still show rent expense on my Profit and Loss?
- What the heck is an imputed interest rate and what rate should I use?
- And finally…how do I do this in QuickBooks?
CPAs earn 1.5 hours of CPE credit for the live workshop. (In order to be awarded the full credits, you must respond to at least three polling questions per credit asked during the program.)
*This training is for users of both the Desktop and Online versions of QuickBooks*
Prerequisites: Attendees should have a background knowledge of basic accounting principles and at least one year of professional work experience in the accounting/bookkeeping field.
Members of the North Carolina Center for Nonoprofits receive $40 off registration through the Center's partnership with QuickBooks Made Easy for Nonprofits – get the discount code (use individual webinar discount).
Register now.