Why your nonprofit’s internal and year end financial statements may differ
Posted Nov 10, 2018
If your not-for-profit prepares internal financial statements for your board on a monthly, quarterly or other basis, you may notice that they deviate in significant ways from year end statements. What’s going on? Most likely, differences are due to cash basis vs. accrual basis accounting. Your auditors likely convert your cash basis financials to accrual basis statements. The statements also may differ because your auditors have proposed adjusting certain entries for reasonable estimates. Ultimately, you want to minimize these differences. We can help.