MinistryCPA - Corey A. Pfaffe, CPA, LLC

One of the most important responsibilities of a not-for-profit board is financial oversight. But for board members who do not have an accounting background, financial statements can sometimes feel like a collection of numbers without much explanation. The good news is that you do not have to become an accounting expert to be able to learn meaningful information from your organization's financial reports. The two primary reports to review are the Balance Sheet, also called the Statement of Financial Position, and the Income Statement or Statement of Activities. The primary goal when reviewing these reports is not to determine if the numbers look right, but to understand the organization's current financial position, identify potential concerns, and determine whether actual results are consistent with the budget the board approved at the beginning of the year.  Balance Sheet The balance sheet provides a brief overview of the organization's financial position at a particular p...