This document discusses key financial concepts for non-profits, including that an income and expense spreadsheet is like a profit and loss statement for for-profit businesses. It shows income and expenses broken down by individual funding sources. The double-entry bookkeeping system ensures the income and expense align with changes in the balance sheet. Creating a budget that meshes expected income receipt with expenses can help analyze cash flow throughout the year to ensure sufficient funds to cover costs.

1. Income and Expense
For Non-Profits

2. Income and Expense
• Known as Profit and Loss in a For
Profit Business
• What can you tell from this
spreadsheet?

3. Income and
Expense
by Fund
Each fund is
one column
(The admin
column is not
a fund but the
operational
costs of the
NGO)

4. Connecting the Income and
Expense with the Balance Sheet
• The Beuaty of this double entry bookeeping
system is that the income and expanse should
match up with the cahgnes in teh balance
sheet.
•

5. Cash Flow Analysis
• You may be fine at the beginning of the year,
but will you have enough cash, all through the
year, to cover your expenses?
• First you need a budget and in your budget
mesh when you expect to receive income with
when you expect expenses.
• Then you need to compare your actual figures
with your budget.