Financial statements are just as necessary for non-profit organizations as they are for businesses. Our CPA firm in Durham provides comprehensive financial statement services to provide your board of directors, donors, and grantors with the accurate information they need to better understand your organization’s financial health.
You can count on Steward Ingram & Cooper PLLC for financial statement services that include audits, reviews, and compilation.
Non-Profit Financial Statements
Financial reports for nonprofit entities may look different from those for regular for-profit businesses. This is because they have a unique set of rules. A non-profit financial statement will include:
Statement of Financial Position
This provides an overview of your organization’s financial state and is equivalent to a balance sheet. A nonprofit’s assets can include grants receivable, promises to give, restricted cash, and beneficial interests among other pieces of information.
The equity section of a nonprofit financial statement will include net assets with and without restrictions. Net assets without restrictions can also include board designations. Net assets with restrictions are restricted by a donor for a certain purpose, or for use over a specific time.
Statement of Activities
The state of activities shows the change in net assets for the year. If you have donor-restricted contributions, it may be more complex. Contributions are recorded with or without restrictions based on the presence or absence of donor-imposed restrictions. When donor restrictors expire, or the purpose has been fulfilled, you will see a reclassification in the statement of activities as net assets are released from restrictions.
Statement of Functional Expenses
The statement of functional expenses lists expenses by their natural category and function. These three main functions are:
- Program Services
- Management and General
Dividing costs allows the auditors or board members to see where the money is going. It will also determine if there are any areas where the expenses are out of balance.
Statement of Cash Flows
The statement of cash flows divides cash flow into three sections, including:
- Operating activities
- Investing activities
- Financing activities
By looking at these activities, a non-profit can see how cash is flowing in and out of the organization.
Why Choose Steward Ingram & Cooper PLLC?
We have been a trusted source for financial statement services for nonprofits in and around the Durham area since 2000. We hold the highest standards and are dedicated to practicing ethical behavior and ensuring all reporting is completed using Generally Accepted Accounting Practices (GAAP). When you work with Steward Ingram & Cooper PLLC, you are working with a seasoned team of Durham accounting and bookkeeping professionals. You can feel confident that your data is being accurately prepared. Trust in our experience and let us guide you when it comes to your financial statements.