[Infographic] What's the Difference Between Nonprofit and For-Profit Accounting?
… and why is it important for stakeholders to know?
Nonprofit financial reporting is changing. Last August, the FASB made the most substantial changes to nonprofit financial reporting practices in over two decades, as we’ve covered extensively
on the Nonprofit Standard. And still more changes are on the way with Phase 2 of the Not-for-Profit Financial Reporting Project.
The readers of nonprofit financial statements are also shifting. Increasingly, many nonprofit board members and executives come from the business world. When these readers look at an organization’s financial statements, they might be confused about the differences from the for-profit statements to which they’re accustomed.
Regardless of background, it’s critical for anyone parsing a nonprofit financial statement to understanding current reporting practices. Our latest infographic outlines the differences between nonprofit and for-profit financial statements to help readers get an in-depth understanding of their organization’s financial position.