Financial statements are crucial to managing the economic stability and financial well-being of organizations. Most individuals understand the basic concepts of the balance sheet, income statement and cash flow statement. Yet, many have difficulty interpreting the information. Often, this is simply due to a lack of understanding of the relationship and purposes of each statement.
This course is for the non-financial professional who wishes to have a greater understanding of the purpose and use of the financial statements. It can also be a tool for the professional just entering the financial profession and who is looking to gain a deeper insight into the aspects of preparing a company’s financial statements.
There are variances in the format, structuring and reporting of for-profit financial statements vs. not-for-profit (NFP) statements. December 31, 2018 saw significant changes to NFP financial reporting. Accounting Standard Update (ASU) No. 2016-14, Presentation of Financial Statements of NFP Entities, became effective, and it is essential for NFP organizations to understand the various aspects of the ASU (A separate course is listed by this instructor on the Illumeo platform that details the specific changes outlined in ASU 2016-14). This course is meant to provide an overview of the basic concepts required in entity financial statements. Since varying concepts exist between a for-profit organization and a NFP organization, we will utilize this platform to compare and contrast the major financial statements including:
- Balance Sheet (For Profit)/Statement of Activities (NFP)
- Income Statement (For Profit)/Statement of Operations (NFP)
- Cash Flow Statement
Learning Objectives
- Explore the variance between the for-profit balance sheet and the not-for profit statement of activities
- Identify what ”balancing" the balance sheet means.
- Recognize the relationship of the balance sheet and statement of activities to the income statement and statement of operations.
- Explore what comprises revenue in for-profit vs. not-for-profit (NFP) organizations.
- Examine the variances between the income statement in a for-profit and the statement of operations in a NFP.
- Explore why the cash flow statement is King.
- Explore elements of the Cash Flow statement in both in for-profit vs. not-for-profit (NFP) organizations.
Included In Certifications
This course is included in the following Certification Programs:
15 CoursesNot-For-Profit and Small Business Entities Certification
- Introduction to Not-for-Profit Entities
- Introduction to Accounting for Not-For-Profit Entities
- Identifying and Implementing the Proper Balance of Internal Controls
- Segregation of Duties for Core Business Processes
- Bookkeeping: Journals, Subsidiary Ledgers and General Ledger
- Bookkeeping: Payroll And Expenses
- Bookkeeping: Accounts Payable/Accounts Receivable And Receipts
- Effectively Managing and Controlling Travel and Entertainment (T&E) Expenses
- Management Internal Control Essentials
- Financial Statement Essentials for Not-for-Profits
- Not-for-Profit Financial Statements Part 2
- Not for Profit Financials - Focus on Net Assets
- Cyber Risk in Small-Medium Entities
- Fraud in Small-Medium Entities
- Not-For-Profit Accountability and Responsibility
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Prerequisites
No advanced preparation or prerequisites are required for this course.
Education Provider Information
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