In this instructional episode, social entrepreneur and accountant Aaron William Perry provides an introduction to accounting and bookkeeping for social enterprises, non-profits, regenerative farms, and sustainability and stewardship oriented businesses. The episode was recorded during a special workshop for the Drylands Agroecology Research community of regenerative farms near Lyons, Colorado: Elk Run Farm, Meta Carbon Farm, and Allens Farm. Introducing the material, Aaron provides some historical context behind the double entry accounting system that is the backbone of all accounting software (including Quickbooks) and financial reporting conventions of virtually all companies, non-profits, and organizations world-wide.
Did you know that modern accounting has its roots in the Italian Renaissance? Brother Luca Pacioli, a mathematician, educator and Franciscan Friar considered to be the “father of accounting,” lived contemporaneously with Leonardo da Vinci. In 1494, Pacioli published the “Summa” in which he codified the systematic mechanics of double-entry bookkeeping and accounting. With this historical context in mind, Aaron discusses the five major account types (Assets, Liabilities, Equity, Income, and Expenses), how Debits and Credits work across each account type, and the major financial reports in which these five account types are expressed: the Balance Sheet, Income Statement, and Cash Flow Statement; also known in the non-profit arena as the Statement of Position, Statement of Activity, and Cash Flow Statement, respectively. This instructional session also walks through some of the basic functions organizations of every size and scale need to know: Invoicing, Depositing Monies, Billing and Expenditures, Reconciling Bank Accounts, Running Reports, Budgeting, and reading Financial Statements.
The Y on Earth Community first intended this workshop to be available only to the Ambassador network, through its Ambassador Resources. However, after some reflection and deliberation, it became evident that the workshop could be much more widely beneficial by making it public through this podcast episode. A very special thank you to Marissa Pulaski and Nick DiDomenico of Drylands Agroecology Research and Elk Run Farm, Azuraye Wycoff of Allens Farm, and Shane Weigel of Meta Carbon Farm. If you would like additional instruction and/or consulting and advising support from Aaron Perry and the Y on Earth Community Team, contact us via the “Advising & Consulting” resources page: yonearth.org/advising-consulting.
Advising & Consulting Resources: https://yonearth.org/advising-consulting/