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 services to help you provide your board of directors, donors, and grantors with accurate data as well as to better understand the financial health of your organization.
Our financial statement services include audits, reviews, and compilation.
Non Profit Financial Statements
Nonprofit entities have a unique set of rules related to financial reporting. Their financial statements may look different from a regular for-profit business. A nonprofit financial statement will include the following:
Statement of Financial Position
This is the equivalent of a balance sheet and provides an overview of your nonprofit organization’s financial state. Assets may include cash, equipment, grants receivable, and any cash equivalent. A nonprofit’s assets may include grants receivable, promises to give, restricted cash, and beneficial interests to name a few.
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 those restricted by a donor for a specified purpose, or for use over a specified time.
Statement of Activities
The statement of activities shows the change in net assets for the year. This statement may be more complex for nonprofits who have donor restricted contributions. Contributions are recorded with restrictions or without restrictions based on the presence or absence of donor imposed restrictions. When donor restrictions expire, or the purpose has been fulfilled the statement of activities will show a reclassification as net assets are released from restrictions.
Statement of Functional Expenses
The statement of functional expenses lists expenses by their natural category and by their function. There are 3 main functions:
- Program Services
- Management and General
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 Flows
The statement of cash flows provides an overview of how cash is flowing in and out of the organization.
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 nonprofits with financial statement services in and around the Raleigh area. We are dedicated to practicing ethical behavior and ensuring all reporting is completed using Generally Accepted 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.