Financial Statements are recorded documents of the business activities written down for the reference of the company. They help the organization to manage taxes, finance and invest from inside and outside sources. A financial statement shows a clear picture about the current condition of the organization. A Nonprofit Organisation has to make its Financial Statements just like a for-profit Organisation, but with some adjustment according to the law of the land.
How to Create Non-Profit Financial Statements?
Step 1: Add all the revenue streams in one column to present the total incoming funds. This will present a clear idea to the reader about the amount of money that is available to the NonProfit for dispensing.
Step 2: Add all the Fixed Expenses of the Non-Profit in another column to tell the reader about the expenses that must be incurred to survive.
Step 3: Add all the variable expense in another column to project operational efficiencies.
Step 4: Add up both the Fixed and Variable Expense totals to get the total outflow of funds figure. Subtract that from the total of Incoming Funds. This will present the current picture of the Nonprofit on the day of drawing up of the Financial Statements.
Step 5: Add a footnote for any explanations as may be deemed fit for the easier understanding of the readers.
Below is a list of How to Create Non-Profit Financial Statements (5 Best Examples) that can be used by you for assistance.
The above template is an example of a financial statement of a humanitarian non-profit organization. This is a sample final auditors report; it shows the current financial condition of the said organization. This template can be used to understand the sources of income and the places where all the money is being used. We can also find a cash flow statement which helps to understand the different departments and how the money is flowing within the organization. This template can be used to get a clear picture of the financial health of the organization.
Financial statements are the most important documents of an organization. It helps us to understand the current condition of an organization by getting estimates of the source of income and places where the money is being spent. Running a nonprofit organization we require funding and to gain the funding from an external source we need to gain their trust which is only possible by showing them the financial statements. This template gives us a sample audited financial statement which can be very useful for a nonprofit educational organization. Any educational institution like the one above survives on the back of grants and aid so the above template is a very good pointer in understanding more about it.
The above template is an example of a financial statement of a national council of nonprofits. There are several nonprofit organization working to achieve their goals but there is a requirement of a council where they all have to give their report. This template shows a sample financial statement of the national council, using this template we can understand how to prepare a financial statement of a nonprofit council and also learn to compare the cash flow of the current year from the previous year to understand the cash flowing activity of the organization.
This template is an example of a research nonprofit comparative financial statement. A comparative statement is used to compare the financial condition of an organization of the current year to that of the previous year. A comparative statement can be used as a base to understand the financial growth of an organization, we can use it to understand the amount of money spent on different activities and also track the source of income of an organization. This template provides a sample template of a comparative financial statement and cash flow statement. Using this template we can also understand and learn about the basic accounting principles.
This template is an example of a generic financial statement. This template shows us the example of a balance sheet of a company with a comparative tool of the previous year. It also shows the cash flow statement of the company. A financial statement makes it easy to understand the current position of an organization and shows a clear view of the financial condition of an organization. This template can be used to understand the current financial condition of any organization and also certainly of a nonprofit organization as well, it helps us to understand the names of the activities and significant accounting policies.
This is template an example of confidential financial statement. There are some financial statement matters which are required to be kept confidential. Some organizations want to prepare a financial statement only for company use and they want to keep the information of the financial statement restricted only to limited people in an organization. This template is an example of a confidential financial statement form which can be filled up to record the source of incomes and also the information about the dependent’s exactly as mentioned on the passport.