GrowthForce Blog Top 5 Mistakes Nonprofits Make During Year-End Financial Reporting

7 min read December 18th, 2024 The process of closing out financial records is complex, and there are lots of places where nonprofit financial mistakes can occur. However, your final financial reports and records must be accurate and compliant. Key Takeaways 5 Common Year-End Financial Reporting Mistakes Nonprofits Should Avoid: In addition to recognizing pledged contributions at the correct time, nonprofits must also separate the revenue they receive into distinct categories. (Note that these categories can also impact the timing of compliant revenue recognition, so proper categorization is twice as important.)... How to Identify and Fix Year-End Reporting Errors in Nonprofits: Before finalizing your year-end financial reports, you should scan through them carefully. Make sure that all of your accounts (bank, credit card, and loan) have been reconciled to their statements. Then, review your financial statements (Statement of Financial Position, Statement of Activities, Statement of Cash Flow, and Statement of Functional Expenses). During this review, you should be looking for... Supercharge Your Back Office and Be Year-End-Ready Year-Round With Outsourced Accounting for Nonprofits: Yes, nonprofit financial reporting is complex. No, you don't have to shoulder the responsibility on your own. The key to accurate, complete, and compliant year-end financial reports is a...