Financial statements are crucial to managing the economic stability and financial well-being of organizations.  Most individuals understand the basic concepts of the balance sheet, income statement and cash flow statement.   Yet, many have difficulty interpreting the information.  Often, this is simply due to a lack of understanding of the relationship and purposes of each statement.

This course is for the non-financial professional who wishes to have a greater understanding of the purpose and use of the financial statements.  It can also be a tool for the professional just entering the financial profession and who is looking to gain a deeper insight into the aspects of preparing a company’s financial statements.

There are variances in the format, structuring and reporting of for-profit financial statements vs. not-for-profit (NFP) statements.  December 31, 2018 saw significant changes to NFP financial reporting.  Accounting Standard Update (ASU) No. 2016-14, Presentation of Financial Statements of NFP Entities, became effective, and it is essential for NFP organizations to understand the various aspects of the ASU (A separate course is listed by this instructor on the Illumeo platform that details the specific changes outlined in ASU 2016-14).  This course is meant to provide an overview of the basic concepts required in entity financial statements.  Since varying concepts exist between a for-profit organization and a NFP organization, we will utilize this platform to compare and contrast the major financial statements including:

  • Balance Sheet (For Profit)/Statement of Activities (NFP)
  • Income Statement (For Profit)/Statement of Operations (NFP)
  • Cash Flow Statement
Learning Objectives
  • Explore the  variance between the for-profit balance sheet and the not-for profit statement of activities
    • Identify what ”balancing" the balance sheet means.
    • Recognize the relationship of the balance sheet and statement of activities to the income statement and statement of operations.
  • Explore what comprises revenue in for-profit vs. not-for-profit (NFP) organizations.
    • Examine the variances between the income statement in a for-profit and the statement of operations in a NFP.
  • Explore why the cash flow statement is King.
    • Explore elements of the Cash Flow statement in both in for-profit vs. not-for-profit (NFP) organizations.
Last updated/reviewed: March 21, 2024

Included In Certifications

This course is included in the following Certification Programs:

15 CoursesNot-For-Profit and Small Business Entities Certification

  1. Introduction to Not-for-Profit Entities
  2. Introduction to Accounting for Not-For-Profit Entities
  3. Identifying and Implementing the Proper Balance of Internal Controls
  4. Segregation of Duties for Core Business Processes
  5. Bookkeeping: Journals, Subsidiary Ledgers and General Ledger
  6. Bookkeeping: Payroll And Expenses
  7. Bookkeeping: Accounts Payable/Accounts Receivable And Receipts
  8. Effectively Managing and Controlling Travel and Entertainment (T&E) Expenses
  9. Management Internal Control Essentials
  10. Financial Statement Essentials for Not-for-Profits
  11. Not-for-Profit Financial Statements Part 2
  12. Not for Profit Financials - Focus on Net Assets
  13. Cyber Risk in Small-Medium Entities
  14. Fraud in Small-Medium Entities
  15. Not-For-Profit Accountability and Responsibility
26 Reviews (123 ratings)

Reviews

3
Member's Profile
The content of this seminar was fine, but it doesn't match the title of the course, which I understood to be "Financial Statement Essentials for Not-For-Profits." The majority of the time was spent on for-profit entities, which made more sense when I got to the final exam, and the title was listed as "Financial Statements Essentials – Balance Sheet, Income Statement, Cash Flow in a For-Profit and Not-for-Profit Organization." I wouldn't have chosen this course if I had known it was covering both.
4
Anonymous Author
This course provides a quick overview of the differences between non-profit and for profit financials. If you are looking for in-depth detail information regarding NFP financial presentation, this would give you a place to start, but you would need to go to a more in-depth class for more information. The slides are helpful and the instructor effective for this class.
4
Anonymous Author
Great course exploring differences in for-profit and not-for-profit financial statements. Very informative and thorough slides/handouts, and the videos were engaging. Excellent course for anyone looking to join the non-profit world in a finance/accounting role!
5
Member's Profile
I really enjoy Lynn's courses as she explains things in a very straightforward manner. This was a good overview of the financials, how they interrelate to each other, and the similarities and differences between for profit and not for profit financials.
5
Anonymous Author
This course covers the basics. As always, Lynn presents in a very organized manner. This course is best served to those not familiar with the basic accounting. If you have a fair amount of background in accounting, I'd recommend another course.
4
Member's Profile
Full and detailed explanations of the financial statements and the difference between profit and not for profit organizations. It would be helpful not to change the screen until the current slide has been fully read.
4
Anonymous Author
I believe it is important to continue to reinforce the difference in financial reporting between for profit and not for profit audit clients. The presenter does a good job of educating in an "entertaining" manner.
4
Anonymous Author
There's a lot of review of for profit income statement and balance sheets. While it is useful for the not for profit comparison, I felt less time could be spent on the for profit financial statements.
5
Member's Profile
Overall helpful in understanding the differences between profit and not for profit. It got a bit confusing because the examples titles sometime did not match the explanations.
5
Anonymous Author
This was a good presentation of the similarities and differences between the financial statements of For-Profit and NFP entities. The FS Relationships section is very useful.
5
Anonymous Author
Very good overview of the difference between for-profit and non-profit financial statements. I would recommend this to anyone who would like an introduction into non profits.
4
Anonymous Author
Great at explaining the financial statement comparison between for profits and non profits, however too much time spent on explaining for profit financial statements.
5
Member's Profile
Good foundational course on not-for-profit accounting essentials. Highlights differences between what most of us see compared to the reporting for NFPs.
5
Anonymous Author
great overview o the differences between NFP and FP Financial statements. A great refresher for someone who once worked in NFP
5
Member's Profile
Good overview of Financial Statements required by GAAP, especially comparison of For Profit to Not For Profit Financials..
5
Anonymous Author
I like the written material (both slides and glossary). Also found the presentation to be informative. No dislikes.
4
Anonymous Author
Solid overview of financial statements presentation differences between for-profit versus non-profit organizations.
5
Anonymous Author
Very informative, loved the way it was presented in simpler terms for it to be understood.
5
Anonymous Author
Meaningful and informative financials for NPOs. A great start to understanding NPOs.
5
Member's Profile
The program explain the content well all examples and explantions were direct,
5
Anonymous Author
Good explanation of the differences between FP and NFP financial statements.
3
Anonymous Author
It was a good high level overview, but I expected more information on NFP.
5
Member's Profile
Great! Glad I took it. Really good to see the difference between the two.
4
Member's Profile
Course was very good but the NFP terminology was a bit confusing.
4
Member's Profile
this courseis a solid overview of the NFP financial statements
5
Anonymous Author
This is a good intro course for NPO's. I would recommend.
show all reviews
Prerequisites
Course Complexity: Foundational

No advanced preparation or prerequisites are required for this course.

Education Provider Information
Company: Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact: For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Instructor for this course
  Course Overview CPE
Course Syllabus
INTRODUCTION AND OVERVIEW
  Introduction to Financial Statements Essentials – Balance Sheet, Income Statement, Cash Flow in a For-Profit ...6:32
  Balance Sheet for Profit17:30
  Statement of Changes in Equity2:40
  Statement of Financial Position NFP10:06
  Income Statement for Profit18:54
  Statement of Activities NFP8:01
  Statement of Cash Flow (SCF) for Profit6:57
  Statement of Cash Flow NFP6:26
  FS Relationships5:52
  Summary1:46
CONTINUOUS PLAY
  Financial Statements Essentials – Balance Sheet, Income Statement, Cash Flow in a For-Profit ... Full Video1:24:45
SUPPORING MATERIALS
  Slides: Financial Statements EssentialsPDF
  Financial Statements Essentials Glossary/IndexPDF
REVIEW AND TEST
  REVIEW QUESTIONSquiz
 FINAL EXAMexam