Report to Management and the Board

A balance sheet gives you a snapshot of your nonprofit's financial condition at a specific moment in time.

A balance sheet helps you...

  • Quickly get a handle on the financial strength and capabilities of your nonprofit.
  • Identify and analyze trends, particularly in the area of receivables and payables. For example, if your receivables cycle is lengthening, maybe you can collect your receivables more aggressively.
  • Determine if your nonprofit can easily handle the normal financial ebbs and flows of revenues and expenses.
  • Determine if you need to take immediate steps to bolster cash reserves.
  • Determine if your nonprofit has been slowing down payables to forestall an inevitable cash shortage.

An income statement, otherwise known as a profit and loss statement, basically adds an itemized list of all your revenues and subtracts an itemized list of all your expenses to come up with a profit or loss for the period.

An income statement and budget-to-actual report allows you to...

  • Track revenues and expenses so that you can determine the operating performance of your nonprofit.
  • Determine what areas of your nonprofit are over-budget or under-budget.
  • Identify unexpected expenditures.
  • Ellen Fontana CPA LLC is a BBB Accredited Certified Public Accountant in Clearwater, FL
© Ellen Fontana CPA LLC 2019, 2451 North McMullen Booth Road, #309, Clearwater, FL 33759
T: (727) 431-0354 F: (727) 499-9569 E: ellen@ellenfontanacpa.com

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