1. Accrual-Basis Accounting: Imagine this like booking a vacation. Even if you haven't paid for it yet, you still count it in your plans. Similarly, in this method, we note down income and expenses when they happen, not when cash changes hands.

2. Accounts Payable (AP): These are like IOUs to your vendors. It's money your nonprofit promises to pay for things you've already received.

3. Accounts Receivable (AR): This is like your friend promising to pay you back for lunch. It's money owed to you for things you've delivered or services you've rendered.

4. Amortization: Think of it as a financial diet plan. You're slowly and steadily paying off a debt or accounting for the cost of assets over time.

5. Audit: This is your nonprofit's financial health checkup. Independent experts come in, review your records, and ensure everything's in tip-top shape.

6. Balance Sheet: It's like taking a selfie of your nonprofit's financial health. It shows what you own, owe, and your net worth at a particular moment.

7. Bank Reconciliation: Ever checked if your wallet agrees with your shopping receipts? It's pretty much the same; ensuring your bank balance matches your book records.

8. Cash-Basis Accounting: Simple! You count the money when it enters or leaves your bank account.

9. Chart of Accounts (COA): It's like the playlist of your favorite songs but for your financial transactions. A list to keep everything organized.

10. Coding: Labeling your transactions. Like sorting your Spotify playlists into moods or genres!

11. Current Assets: These are the goodies your nonprofit can quickly turn into cash within a year, like accounts receivable or short-term investments.

12. Current Liabilities: Bills and debts you aim to settle within a year.

13. Deferred Revenue: Picture this as gift cards sold but not used yet. Money you've received, but for services or goods you haven’t provided

14. Depreciation: Think of it as acknowledging that everything, like a good pair of jeans, wears out over time. It's a way to account for the decreasing value of things you own.

 15. Direct Costs: Straightforward costs linked to producing specific services or products.

16. Donor Advised Fund (DAF): It's like a charitable savings account. Donors contribute and get tax benefits, then recommend where those funds should be granted.

17. Fixed Assets: Long-term treasures like buildings and equipment, not expected to be sold quickly.

18. Functional Expense Report: A detailed breakdown of your expenses, showing how much is spent on main activities, management, and fundraising.

19. Forecast: Your nonprofit's crystal ball, predicting your future financial status.

20. Form 990: Think of it as your nonprofit's yearly report card, showing the IRS, donors, and others how you've been doing.

21. Grants: Gifts from foundations, corporations, or government agencies. It's like getting a scholarship for your nonprofit's projects!

22. Income Statement: A diary of your nonprofit's financial activities over a period, noting down your earnings and spending.

23. Indirect Costs: Overhead expenses like rent or utilities that support the overall functioning of the organization.

24. In-Kind Contribution: Generous folks giving goods or services instead of cash.

25. Journal Entry: Making a note of business happenings. Like jotting down memories in a diary.

26. Liability: Things you owe, mainly in the form of money.

27. Liquidity: How quickly something can be turned into cash. Like how liquid orange juice is, but for assets!

28. Management Letter: A letter confirming the accuracy of your financial records, written with the collaboration of your auditors.

29. Net Assets: What your organization is truly worth after settling all its debts.

30. Pledge: A pinky promise from donors to give a certain amount over time.

31. Prepaid Expense: Like buying a movie ticket in advance. You've paid now for something you'll enjoy later.

32. Release from Restriction: Moving funds from a "save for later" to a "spend now" category.

33. Statement of Cashflows: A detailed record of how cash flows in and out of your nonprofit.

34. Unrealized Gain or Loss: The potential profit or loss from assets you've yet to sell. Like imagining the joy (or regret) of selling an old collectible.

35. Working Capital Ratio: A measure to check if your nonprofit can pay off its short-term debts. The higher the ratio, the better your position.

Remember, accounting isn't about the numbers, but the story they tell. With these terms in your toolkit, you're well-equipped to narrate your nonprofit's financial journey with confidence!