While most people associate financial statements with for-profit organizations in order to secure lending and attract investors, they are just as necessary for non-profit organizations. Our CPA firm provides comprehensive financial statement preparation services to help you provide your board of directors, donors, and external review boards with accurate data as well as to better understand the financial health of your organization.

In addition to financial statement preparation we also offer financial statement reviews, audits, and compilation.

Non Profit Financial Statements

There are five financial documents that show your financial health and stability, and we will work with you to prepare the documents you need.

Statement of Financial Position

This is the equivalent of a balance sheet and provides an overview of your non-profit organization’s financial state. Assets include cash, equipment, grants receivable, and any cash equivalent while liabilities are debts and accounts payable. After subtracting liabilities from your assets you can determine net assets. Also, it’s important to note that donor contributions are accounted for and placed separately within the Statement of Financial Position as these are generally restricted from your operating costs. 

Statement of Activities

The Statement of Activities shows how your net assets fluctuate. This statement can be more complex due to the donation of goods as well as the potential for restricted activities, such as endowments that are earmarked for specific use. 

Statement of Functional Expenses

Functional expenses lists the expenses according to how it affects the non-profit organization. Functions include: 

  • Administrative costs such as payroll, rent, or utilities
  • Program expenses
  • Fundraising costs, including marketing or renting a venue. 

By dividing costs, the auditors or board members can see where the money is going and determine if there are any red flags or areas where the expenses are out of balance. 

Statement of Cash Flow

Like a cash flow sheet used in a for-profit business, the Statement of Cash Flow provides an overview of how liquid assets and cash are flowing in and out of the organization over a set period of time. 

This report divides cash flow into three sections, including: 

  • Operating activities
  • Investing activities
  • Financing activities

Why Choose Steward Ingram & Cooper PLLC?

Since 2000, we have provided non-profit tax planning and financial statement preparation services in and around the Raleigh area. We are dedicated to practicing ethical behavior and ensuring all reporting is completed using Generally Acceptable Accounting Practices (GAAP). With a seasoned team of accounting and bookkeeping professionals, you can feel confident that your data is prepared accurately and we are providing analysis and guidance based on our wealth of knowledge and experience.