As an Executive Director, you need to communicate your nonprofit’s financial position to your board on a monthly basis. This is a key method of keeping your board informed between meetings.
To begin, if you aren’t using a bookkeeper, get QuickBooks for Nonprofits. Sign up with TechSoup (www.techsoup.org) and get it now. It’s about $35 and worth its weight in gold. Trying to keep the books in Excel only increases your workload, and will be a nightmare when you prepare your 990.
The first two reports you need are the Statement of Financial Income and Expense (aka Income Statement) and Statement of Financial Position (aka Balance Sheet) found under the Reports/Nonprofit Reports tab. The Income Statement tracks your income and expenses. You may want to report this for the last month, as well as the fiscal year to date. The Balance sheet should be as of the end of the last full month.
Our next posts will discuss budgets, budget reporting, cash flow forecasts and using a “Dashboard.”