The Statement of Financial Position (SOFP) is the correct nonprofit term for the balance sheet. The concept and the equation are essentially the same as any business balance sheet or statement of personal net worth, with the key difference being that for nonprofits, what’s left when you subtract liabilities from assets is not considered “equity” belonging to an individual or a business, but rather “net assets” that remain with the nonprofit entity.
Selecting and calculating certain ratios and indicators, especially in trend, can tell an organization a lot about many aspects of its financial position, performance, and prospects.
With the existing Liquidity and Availability disclosures required for non-profit organizations, there is certain qualitative and quantitative information that should be disclosed.
Many nonprofits are facing the decision of whether to accept digital assets or miss the chance of substantial donations as digital assets become more popular and easier to access.
Use cloud-based tools. Transition your accounts payable (AP) process to a cloud-based service that interfaces with your accounting system. This can’t be overstated.