Non-profit organizations play an essential role in our society by addressing social issues. They rely on donations and grants to fulfill their missions. Non-profits are required to maintain accurate financial records and financial statements. Below are the financial statements non-profits need to always keep up to date, and that should be ready and prepared by a non-profit accounting firm when filing taxes.
The income statement, also known as the “statement of activities,” shows the organization’s revenues and expenses over a specific period. It reports the organization’s net income or loss, which is the difference between the total revenues and expenses. The income statement is crucial because it helps the organization to monitor its financial performance and identify areas that require improvement. The income statement is also essential when filing the IRS Form 990, which is a tax return for tax-exempt organizations.
The balance sheet shows the organization’s assets, liabilities, and net assets at a specific point in time. It provides a snapshot of the organization’s financial position and its ability to meet its financial obligations. The balance sheet is crucial because it helps the organization make informed decisions about its financial resources and investments. The balance sheet is also required when filing the IRS Form 990.
Statement of Functional Expenses
The statement of functional expenses shows how the organization’s expenses are allocated among its program services, management, general expenses, and fundraising activities. It helps the organization monitor its expenses and ensure that its resources are used effectively to achieve its mission. The statement of functional expenses is also required when filing the IRS Form 990. If you have questions about what else is required when filling out the IPS Form 990, contact our office today for more information on our non-profit accounting services.
Statement of Cash Flows
The statement of cash flows shows the organization’s cash over a specific period. It reports the organization’s operating, investing, and financing activities and the net increase or decrease in cash and cash equivalents. The statement of cash flows is crucial because it helps the organization to monitor its cash position and ensure that it has enough cash to meet its obligations. The statement of cash flows is also required when filing the IRS Form 990.
Get in Touch With Marcus, Fairall, Bristol & Co. for Non-Profit Accounting Services
Maintaining accurate financial records and preparing financial statements can be a challenging task for non-profit organizations. That’s why it’s crucial to have an experienced accounting firm that specializes in non-profit accounting services. Marcus, Fairall, Bristol & Co. is a full-service accounting firm that provides accounting, tax, and consulting services to non-profit organizations. We have a team of experienced professionals who understand the unique challenges that non-profit organizations face and can help them navigate complex financial issues. Contact us online or call (915) 775-1040 today to learn how we can help your non-profit stay compliant, maximize value, and file taxes.