Understanding Nonprofit Financial Statements
Approximately 2 hours for full agenda, depending on the complexity of the organization.
Training Agenda
Introduction
Review of Financial Oversight Duties
Basic Financial Statements Introduction
Balance Sheet
Assets
Liabilities
Assets = Liabilities + Equity
Income Statement
Accounting Pause: Accrual vs. Cash Accounting
Revenue Types
Expense Types
Revenue & Expense Categorization
Statement of Cash Flows
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Accounting Pause: Fund Accounting
Types of Financial Statements
Audit
Budget
Forecast
Internally prepared (interim) financial statements
Tax returns
Analyzing Financial Statements
Liquidity Ratios
Profitability Ratios
Management efficiency Ratios
Leverage Ratios
Nonprofit specific benchmarks discussion
Envisioning the Dashboard
Questions and wrap-up