Financial Statement Concepts for the NON Financial Nonprofit Executive
Financial statements are like film. The Balance Sheet, or Statement of Financial Position, is a SNAPSHOT of your organization’s financial position at one specific point in time. The Income Statement, or Statement of Activities, is a MOVIE of what happened financially during a period of time. Some call the Statement of Activities the Profit and Loss Statement or P&L. A set of financial statements is like a movie between two snapshots. How you stood at the beginning, what happened and where you stand at the end.
In this session, participants will learn how to read and understand financial statements. We will become familiar with the building blocks of financial statements, how accounting works, the difference between accrual basis and cash basis, and will explore the special accounting principles specifically related to nonprofits such as recognizing contributions, pledges, and restrictions.
Field of Study: Accounting