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Billing statement of account sample for non-profit organizations

[Music] hey this is Alex from applo's Academy today we're gonna take a look at financial statements otherwise known as reports if you've begun to create a non profit chart of accounts and record transactions this is the course for you so what are financial statements over the past couple of lessons we've taken a look at how to create an accounting system for your nonprofit the first step is to create a chart of accounts and then to use those accounts and transactions once those things are done then you can begin to compile that information into reports otherwise known as financial statements today we're gonna take a look at the two reports that everybody needs to know the 3 reports that are specific to nonprofits and then other types of reports that might be beneficial for your nonprofit the first report is called your balance sheet which for a nonprofit is known as the statement of financial position this report shows the accounting equation which is your assets equal your liabilities plus your equity what this basically means is the stuff that you own minus the stuff that you owe equals your overall worth this report shows a snapshot of your organization's overall health it'll quickly show you if you owe more than you actually own and for a nonprofit that's also going to show your Thunda balances the second report that everybody needs to know is called an income statement which for a non-profit is known as a statement of activities this report shows your income minus your expense to equal what's called your net income which basically means did you spend more than you received during a period of time with the balance sheet and the income statement in hand you can feel confident going to your board or anybody else that needs to know about your organization's overall health so now for nonprofit financial statements for nonprofits there's three specific reports that you're going to need to run at any given time the first is called the statement of financial position otherwise known as your balance sheet which we took a look at the second is the statement of activities which is your income statement so the third report is called a statement of functional expenses the statement of functional expenses is where fund accounting begins to shine what this shows is not only how much money you've spent but how much money you've spent and received across your entire organization over all of your funds for instance you can see what your total administrative cost was for the year but you can also see how much of that administrative cost was for your general fund admissions fund building fund and whatever else did you have set up assuming you've created an effective chart of accounts and recorded transactions accurately these reports should not be very difficult for you to run so what are some other reports that you can run for your nonprofit a report is just a collection of data so it can really be anything that you it's really gonna boil down to how much detail you've been recording and what kind of software you use to generate your report when choosing a software for your nonprofit you may want to glance at the reporting capabilities before making a decision especially for a non-profit you want to make sure that you choose a software that will allow you to find the information you need and quickly for instance do you need to know how many people have donated to a fund or how much money you've spent on a particular fundraiser all of this and more again will come down to the amount of detail that you've been recording in transactions and the software that you use to generate reports a nonprofit accounting system boils down to being able to set up a chart of accounts that make sense use that chart of accounts in transactions and then use those transactions to pull reports this is essentially the nuts and bolts of any nonprofit accounting system now that you have a foundational understanding of what a nonprofit accounting system is you can begin to form one for your nonprofit in the next few lessons we're going to take a look at how to protect your accounting system as well as the rules and the guidelines that you'll need to adhere to as a nonprofit until next time be sure to go back and read the last few lessons if you miss them and beyond