Balance sheet
MC & LC
i. Equity
Equity is the money or assets you own. Your goal for the term or financial year is to increase your equity by the end of the term. Each income and expense either increases or decreases your equity, but you never book directly on this account. You are using the profit and loss statement as help to calculate if you increased or decreased your equity by the end of the term. At the end, you book your equity and adapt it to the result of your
ii. Liquidity
Under this term hides all kind of money you have in a liquid form. That means your money on your bank accounts as well as the cash in your office or in your LC. Important is that you have instant access to it, otherwise, it would be a long-term asset.
Liquidity is booked on the asset side of your balance sheet and should be booked as often as possible to have always a bookkeeping which is up to date.
iii. Assets
Everything which is standing on your asset side of the balance sheet is considered to be an asset. The only difference is if your assets are long-term or short-term. Long-term assets are quite rare in AIESEC because we are a service provider and not a factory. So normally you find in assets big machines or similar, but you can also find computers and laptops on it. Based on your accounting principles in your country, everything below a certain limit needs to be booked as an asset and not as an expense. During your usage of the device, you need to depreciate the item with a certain depreciation scheme and book the value partly as an expense. The easiest scheme is linear which means you divide the value of your assets by the duration (in years) of usage, this is the amount you need to depreciate each year.
Special accounts which are helpful
i. OGX liabilities accounts
When you have your OGX fee split up in certain smaller fees which get paid by the EP in one payment you should create for each EP a liability account to book the payment on. The reason is the received money
which does not belong to you partly because you have not delivered any services so far. For example, you split your fee into OPS fee and approval fee, that would mean for you should book the OPS to the right account and the approval fee to a different account. So at first this account helps you to split the income, but it also enables you to see if you already have the money to organize the OPS. Or imagine the case, your EP drops out after attending the OPS. That means you can see that the OPS fee from his account was used but the approval fee not. In case you have a reimbursement policy you can see what the EP receives back.
ii. LC current accounts
This kind of account can help you to track the internal debt of your LCs towards MC, but also enables the LCs to track their receivables and liabilities among each other. It should be a neutral account where you are booking the money you are sending to an LC which is organizing the next national conference for example. You know this money will be paid back as soon as the LC receives the delegate fee. When you are booking this money on an LC current account you have always control over these liquidity transfers because it is directly registered as yours. The LC is booking it on the MC current account to register to whom the money belongs and as soon as they have the money, they can settle the account.
iii. External partner accounts receivables
Gathering money from companies to which you provided a service can be a hustle. The more important it gets for you to keep an overview of your account receivables. Book all your invoices on this account
iv. Member current accounts
This is an important account for reimbursements of your members to have an overview of the current state of reimbursements. Use for it neutral accounts to track receivables and liabilities in the same way. An exemplified booking would be the following:
Expense 100 EUR to member account 100 EUR
Member account 100 EUR to bank account 100 EUR
v. Accrual accounting
To know what accrual accounting is, go to
Download the Example balance sheet - Practice example.xlsx here:
