Financial Statement for Non-Profit (Student Representative Council)
Q: Please how do I prepare a financial statement at the end of a session to show how we have spent as the financial secretary? Thanks in advance.
A: Hi John and thanks for your question.
I would recommend to put together a statement showing incomes/receipts and expenditures. Incomes would be how much funding you were given as well as any funds raised, etc.
This report of incomes and expenditures is known by many names but is essentially a sort of funds allocation statement or receipts and payments statement or something like that (you can't officially call it an income statement or profit and loss statement as this is not a business trying to make income and profits).
This kind of financial statement for a non profit would look something like this:
INCOME/RECEIPTS Funds granted $450 Funds raised $50 TOTAL INCOME $500
EXPENSES/PAYMENTS Wages of SRC staff $300 Rental of conference room for event $100 Stationery $50 TOTAL EXPENDITURE $450
This format is pretty simple but all you really need to show.
Note that instead of "profit/loss" at the bottom of the report we use the words "surplus" or "deficit" for non-profits. This is basically the same as "profit" or "loss" but for a non-profit organization.
The format of income/receipts, expenses/payments and surplus/deficit in this statement can be used for any type of non-profit organization, by the way.
Remember though, for any report it should be kept in mind what information the users of the report are looking for. So with the above report (and any report on this website) you would modify it for your exact organization and situation.
Hope that makes sense and that you now have a better idea of how to create a financial statement for your non profit that shows its incomes and expenditures.
Best, Michael Celender Founder of Accounting Basics for Students