Nonprofits have an ongoing obligation to report to
the Corporate Affairs Commission (CAC) and the
Federal Inland Revenue Services (FIRS) by submitting an annual financial report. Generally, all nonprofits must file their annual returns within six months
from the end of their reporting period.
Good financial management and financial governance are at the core of nonprofit management. How accounting officers and the Board make use of financial reports is critical in delivering value for money and in maximizing the stewardship of organisational resources. For a financial report to be deemed to be good, it needs to be of sufficient quality and up to date.
You nonprofits financial report help you manage your organisation well by telling your stakeholders how you have spent the money you received, it can also help you attract money from other organisations or people who are interested in your activities. It helps regulators to see how what you have spent supports your work and the resources available to you at the end of your financial year.
Nonprofits report their income and expenditure on the basis of when the activity happens, rather than when you receive and spend the cash. The income and expenditure basis is called accruals based accounting. The accrual accounts requires a
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