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P & L for Non-Profits?

 
 
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      04-14-2011, 10:40 PM
Since a Non-Profit Organization doesn't make a profit. What report does the accountant generate instead of the profit and loss statement?
 
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      05-12-2011, 05:11 PM
A viable alternative would be a cash flow statement. But in any case, it would be recommended that an accountant produce an income statement. The decision makers would want to know how they're doing on a month-to-month basis.
 
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      05-12-2011, 11:04 PM
Look at last year's audit and pattern your financials to accordingly. Because of FASB 116, Revenues can be inflated and give a non-profit a false sense of security. I recommend a good Cash Flow Statement as well. Black ink on the P&L does not always reflect the real picture in operations.
 
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      05-16-2011, 02:38 AM
The income statement for a non-profit organization is called the Statement of Activities. It shows the change in net assets for the year instead of "net income/loss" as in a for-profit entity. However, the format is essentially the same, taking Revenues less Expenses.

Generally, the Statement of Activities is broken out between temporarily restricted, permanently restricted, and unrestricted activities.
 
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      05-17-2011, 12:22 PM
I recommend a good Cash Flow Statement as well.
 
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      06-14-2012, 04:31 PM
Glad LoveEventing pointed out the nonprofit name for the P&L as the Statement of Activities and its need for Restricted, Temporarily Restricted, and Unrestricted Income. There is a parallel need for those categories on the Statement of Position (Balance Sheet), too. Gotta keep up with how much is available for what when, eh?
 
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      07-12-2013, 04:03 PM
LoveEventing and gsoClarke nailed this and are the only correct answers in this thread.

-Tim Goetz, CPA
 
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      10-08-2013, 07:20 PM
QuickBooks Non-profit edition could be a better way to manage the show for Non profit organizations. I worked with several accountants working with that and quite comfortable with its features.
 
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      10-30-2013, 09:28 AM
Surplus income over expenditure
 
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