Financial Statements and Balance Sheets
Financial statements are usually given quarterly to the members of the board. These reports are typically prepared by the CFO. Generally, the statements track an opening balance that is then added to and subtracted from throughout the course of a year. Such statements also include expenditures broken down into different categories for analysis. The information from these statements appear prominently in the annual report, and keeping this information accurate is an important aspect to maintaining legal and healthy financial operations.
Chief Financial Officer Duties and Hiring Professional Accountants
Many organizations use an outside accountant to help file the annual Form 990 with the IRS. Small NPOs can often get some discount of the services of a tax accountant, though larger organizations are more likely to pay full price.
Unless the CFO of an NPO organization is an accountant who specializes in nonprofit work, it is a good idea to take advantage of a hired accountant. In order to ensure that operations are legal and that any future audits will not turn up any illicit information, even small organizations rely upon outside tax professionals.
