{"id":298174,"date":"2025-10-22T13:22:49","date_gmt":"2025-10-22T01:22:49","guid":{"rendered":"https:\/\/www.reckon.com\/au\/?post_type=sbh&p=298174"},"modified":"2025-10-22T13:22:57","modified_gmt":"2025-10-22T01:22:57","slug":"financial-reporting","status":"publish","type":"sbh","link":"https:\/\/www.reckon.com\/au\/small-business-resources\/not-for-profit\/financial-reporting\/","title":{"rendered":"Understanding Financial Reports for Non-Profit Organisations"},"content":{"rendered":"

[et_pb_section fb_built=”1″ custom_padding_last_edited=”on|phone” _builder_version=”4.23″ custom_padding_tablet=”” custom_padding_phone=”0px||||false|false” da_disable_devices=”off|off|off” locked=”off” global_colors_info=”{}” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on”][et_pb_row column_structure=”1_3,2_3″ _builder_version=”4.23″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” width=”100%” custom_padding=”||0px||false|false” global_colors_info=”{}”][et_pb_column type=”1_3″ module_class=”table-contents” _builder_version=”4.23″ background_color=”#f3f2f6″ custom_padding=”25px||25px||true|false” sticky_position=”top” sticky_limit_bottom=”section” sticky_position_tablet=”top” sticky_position_phone=”none” sticky_position_last_edited=”on|desktop” pac_dcm_carousel_specific_module_num=”0″ border_radii=”on|24px|24px|24px|24px” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text _builder_version=”4.23″ text_font=”||||||||” global_colors_info=”{}” background__hover_enabled=”on|desktop”][\/et_pb_text][\/et_pb_column][et_pb_column type=”2_3″ _builder_version=”4.16″ custom_padding=”|||” pac_dcm_carousel_specific_module_num=”0″ global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text admin_label=”Intro” _builder_version=”4.27.4″ header_2_font_size=”32px” header_2_font_size_tablet=”30px” header_2_font_size_phone=”26px” header_2_font_size_last_edited=”on|tablet” global_colors_info=”{}”]<\/p>\n

All Australian charities and community organisations need to view financial reports as part of the foundation of their systems. Staying on top of them equates to good governance and stronger relationships with members, potential donors, corporate sponsors, funders, and regulators. After all, a well-put-together annual financial report can analyse reams of financial data and turn it into a story about your operations and how you used that money to do good for the community in the past year.<\/p>\n

Who needs to lodge what<\/h2>\n

Every Australian charity (other than those registered with ORIC<\/a>) has to submit an Annual Information Statement (AIS) to the ACNC<\/a> each reporting period. Medium and large charities \u2013 except Basic Religious Charities<\/a> \u2013 also have to attach an annual financial report. Small charities can choose to do this if they want (and many do because it makes them more transparent).<\/p>\n

Think of the ACNC as the national \u2018not for profits commission\u2019. If your NFP is set up as a company but also a charity, most of the reporting you do will go to the ACNC instead of ASIC. By contrast, public companies lodge with ASIC and report to shareholders.<\/p>\n

Either way, your financial report has to comply with Australian Accounting Standards<\/a>. You\u2019re expected to give a true and fair view of your financial position and performance, and be approved by your board members (\u2018responsible people\u2019).<\/p>\n

<\/h2>\n

What your annual financial report should include<\/h2>\n

[\/et_pb_text][et_pb_image src=”https:\/\/www.reckon.com\/au\/wp-content\/uploads\/2025\/10\/Annual-financial-report-requirements-2.png” alt=”DGR application essentials” title_text=”Annual Financial Report Requirements 2″ align=”center” _builder_version=”4.27.4″ _module_preset=”default” custom_margin=”-30px||||false|false” global_colors_info=”{}”][\/et_pb_image][et_pb_text admin_label=”Intro” _builder_version=”4.27.4″ header_2_font_size=”32px” header_2_font_size_tablet=”30px” header_2_font_size_phone=”26px” header_2_font_size_last_edited=”on|tablet” global_colors_info=”{}”]<\/p>\n

At minimum, medium and large charities have to submit:<\/p>\n