For those non-profit organizations, producing a sample financial statement is an easy process that can be accomplished using many of the professional accounting software available on the market today. By following some simple steps, you will be able to create a sample financial statement for any organization with little or no experience.
Before you create financial statements for non-profit organizations, it is important to know what types of items that your business should have in its financial statement. There are certain requirements that each type of organization must follow in order to apply for funding from your government or any private organization. These include reporting assets, liabilities, and income. Knowing these requirements before you begin is vital to success in this process.
Once you have decided what type of entity you want to set up, you can move onto the next step of creating financial statements for non-profit organizations. The document that you create should begin with the list of accounts receivable. This includes money that has been received by your organization. In this section, you will record all unclaimed funds and make a note of all payment dates.
Create another document that details the collection of funds from the vendors. You should include the amount of the payment as well as the vendor’s name and date of payment. Then, in the invoice document, you will list out all the supplies that you have purchased. You will need to record the date that the items were received by the organization and the items’ original cost. You will also need to include the vendor’s name and billing address.
Once you have these items collected and in the financial statements, you can move onto inventory. Inventory is an item that has been received by the organization. Inventory includes goods, and supplies that have been delivered to the organization, as well as items that have been purchased from the vendors.
Inventory is not included in the financial statements as a separate item. You simply need to enter in the total value of all inventory items in your financial statement and note down the vendor’s name and address. If you have any items that have not been received yet or if you notice that any items that you have purchased are not listed in your inventory, it may be a good idea to contact your vendors and ask for their input on what they believe the proper accounting description for this account is.
After you have completed this section, you will want to hire a professional accountant to review the documents for accuracy. This professional accountant should help you understand how the accounting works and provide input as to what items are necessary and which items are less important to your organization. If your organization has an in house accountant, this may be a great time to hire someone to work for you.
If you are unsure how to write your financial statements, there are many books that are available that will help you in the process. If you are currently an accountant and you are looking for some additional employment, you may want to consider writing your own financial statement.