non for profit financial statements check list

Confirm all financial transactions are recorded in the accounting system.

Ensure that all bank reconciliations are completed.

Review the trial balance for accuracy and completeness.

Prepare the Statement of Financial Position (Balance Sheet).

Prepare the Statement of Activities (Income Statement).

Prepare the Statement of Cash Flows.

Prepare the Statement of Functional Expenses (if applicable).

Verify all receivables and payables are accurately stated.

Review all revenue recognition criteria and confirm compliance.

Adjust for any accruals and deferrals as necessary.

Assess any estimates or judgments made in the financial statements for reasonableness.

Confirm that all restricted funds are properly classified and reported.

Ensure compliance with relevant accounting standards (e.g., GAAP or IFRS).

Verify that all necessary disclosures are included (e.g., related party transactions, contingencies).

Review any grant or funding agreements for compliance with reporting requirements.

Confirm proper classification of net assets (unrestricted, temporarily restricted, permanently restricted).

Have a second set of eyes review the financial statements for errors or omissions.

Ensure that all supporting documentation (e.g., bank statements, invoices) is organized and accessible.

Prepare management discussion and analysis (MD&A) if applicable.

Confirm that the financial statements align with the organization’s mission and goals.

Present the financial statements to the board of directors for approval.

Obtain signatures from the appropriate officers if required.

Distribute the approved financial statements to stakeholders (e.g., donors, grantors, regulatory agencies).

Ensure the financial statements are filed with the necessary authorities (e.g., IRS Form 990).

Conduct a post-mortem meeting to discuss the financial statement preparation process.

Identify any areas for improvement in financial reporting and controls.

Update accounting policies and procedures based on lessons learned.

Document any changes or recommendations for the next reporting period.