Accounting for Nonprofits Includes Analyzing Trends
Did you know that the United States government produces an annual 10-K? It’s called The Financial Report of the United States Government (a creative title if ever there was one) and it contains the annual reports from 150 federal entities. Accounting for nonprofits includes analyzing such documents and exploring trends that may directly impact your work and constituents.
The report is prepared annually by the Treasury Department. It contains nearly every brand of the federal government with the exception of the Federal Reserve, among others. The focus is on the government’s fiscal performance for the previous year, but it contains some useful gems of information about trends and future direction. It’s this information that may be valuable to your nonprofit organization.
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Which Way the Wind Is Blowing…
Reading through the information in the document, or the summaries provided by each agency, you can begin to glean some of the trends found within the jargon. Some of the government bodies use reporting methods similar to what you have seen from corporations, but others use specific government-formula reporting to account for their finances.
Among the notes that accompany the finances are useful bits of information that may be quite helpful to your nonprofit organization. For example, if you work for a nonprofit that provides health or health-related services, reviewing the Department of Health and Human Services’ information in the complete report may help you understand the government’s priorities. This in turn may lead to pursuing federal grants and other funds based on such priorities, or aligning your nonprofit with general trends to better serve people.
Super CPA to the Rescue
CPAs have an important role to play in the analysis of the federal budget information. With your experience and knowledge, you can translate the important points for your organization and help them understand the information that may affect their work in the new year.
The AICPA has published a special report to go along with the main document. What’s At Stake provides information for CPAs curious or concerned about the contents of the federal document.
Accounting for nonprofits is so much more than keeping the books and managing the money. It’s also being part of the leadership team that helps set policy direction, goals, and more. For those concerns about how various federal agencies may change their policies or adapt to the new year, reviewing The Financial Report of the United States Government may be helpful.
Financial Advice and Assistance for Nonprofit Organizations
Beck & Company Certified Public Accounts and Business Advisors specializes in nonprofit financial management, nonprofit accounting audit services, and issues pertaining to the world of nonprofits. We have extensive experience helping nonprofits of all sizes achieve their mission without sacrificing margin. Contact us for more information.