For Australian not for profits (NFPs), the end of the financial year (EOFY) is about more than meeting compliance requirements. It is an opportunity to evaluate financial performance, identify potential risks, and plan confidently for the year ahead. Whether you’re a small community charity or a large national NFP, reviewing key financial reports after EOFY helps boards make informed decisions while supporting good governance.
The Australian Charities and Not-for-profits Commission (ACNC) also reinforces the importance of accurate financial reporting. In 2024–25, ACNC helped 143 charities correct material reporting errors, resulting in $2.8 billion in revenue and $5.8 billion in assets being amended on the Charity Register. This demonstrates why boards should carefully review financial reports before relying on them for strategic planning and decision-making.
While medium and large charities registered with the ACNC are generally required to lodge annual financial reports, smaller charities can also benefit from reviewing their financial position after EOFY. Regular financial reporting helps boards understand their NFP’s performance, monitor sustainability, and make proactive decisions that support their mission.
Here are five essential reports every NFP board should review after EOFY.
1. Statement of Financial Position (Balance Sheet)
The Statement of Financial Position provides a snapshot of your NFP’s assets, liabilities, and net assets, helping the board assess its financial stability. This report can help directors answer important questions such as:
- Does the NFP have enough cash and assets to meet upcoming obligations?
- Are liabilities increasing faster than assets?
- Have financial reserves improved or declined since last year?
For many Australian NFPs, maintaining adequate reserves has become increasingly important. According to the Australian Communities Foundation’s 2025 NFP Resilience Report, only 25% of Australian NFPs feel financially stable, with adequate reserves to support long-term sustainability. Reviewing the balance sheet each EOFY helps boards identify trends before they become larger financial challenges.
2. Statement of Profit or Loss (Income Statement)
The Statement of Profit or Loss summarises income and expenses across the financial year. Although NFPs exist to deliver community impact rather than generate profits, this report provides valuable insight into whether income is keeping pace with expenditure.
Board members should review:
- Grant and donation income
- Fundraising performance
- Employee and operating expenses
- Program delivery costs
- Annual surplus or deficit
A surplus is not necessarily a sign that funds are sitting idle. It may indicate the NFP is building reserves for future initiatives or preparing for funding uncertainty. On the other hand, recurring deficits may signal the need to review budgets, funding strategies, or operational priorities.
3. Statement of Cash Flows
A financially sound NFP can still experience cash flow pressures. The Statement of Cash Flows shows how cash moved in and out of the NFP during the financial year, providing insight into its ability to meet day-to-day obligations.
Unlike the income statement, which records income and expenses when they are recognised, this report focuses on actual cash received and spent.
Boards should ask:
- Is enough cash being generated through operating activities?
- Are grant payments arriving as expected?
- Are there periods where cash flow becomes tight?
- Can the NFP comfortably meet payroll, supplier payments, and program costs?
Monitoring cash flow after EOFY enables boards to identify potential issues early and plan with greater confidence.
4. Budget vs Actual Report
The Budget vs Actual Report is one of the most valuable tools for understanding financial performance. It compares the approved budget against actual results, allowing boards to quickly identify where expectations differed from reality.
Significant variances may indicate:
- Higher-than-expected operating costs
- Delayed grant funding
- Lower fundraising income
- Changes in program delivery
- Emerging financial risks
Rather than simply reviewing the numbers, boards should explore why these variances occurred and determine whether budgets or financial strategies need to be adjusted for the coming year.
5. Grant and Funding Performance Report
For many Australian NFPs, grants and external funding remain the primary source of income. Reviewing a Grant and Funding Performance Report after EOFY provides a clearer picture of current funding arrangements and future financial sustainability.
This report may include:
- Active grants and funding sources
- Grant expiry dates
- Funding acquittal deadlines
- Restricted and unrestricted funding
- Future funding opportunities
- Revenue concentration risks
Reviewing funding performance is particularly important given that the Australian Communities Foundation’s NFP 2025 Resilience Report also found that unstable or short-term funding is the leading financial concern for Australian NFPs, with 60% relying primarily on short-term grants. Understanding when grants expire, where funding is concentrated, and how future income is projected helps boards make better decisions and strengthen long-term financial resilience.
From Compliance to Confidence
Preparing financial reports is only one part of good governance. Boards also need confidence that the information is accurate, timely, and presented in a way that supports informed decision-making.
The ACNC requires medium and large charities to submit annual financial reports that provide a true and fair view of their financial position and performance. Even where annual financial reports are not mandatory, maintaining accurate records and reviewing financial information regularly is considered good practice for NFPs of all sizes.
Many charities rely on professional not-for-profit bookkeeping and not-for-profit accounting services to improve financial accuracy and reduce the administrative burden on internal teams. Accurate financial information gives boards greater confidence when making strategic decisions and planning for future growth.
While many accounting firms in Sydney offer traditional bookkeeping and accounting services, working with advisers who have experience in NFP reporting requirements, grant funding, and ACNC obligations can provide additional value beyond preparing financial statements.
Trusted Outsourced Accounting Service in Sydney for NFPs
EOFY is the ideal time to look beyond compliance and assess your NFP’s financial health. By reviewing these five essential reports, boards can better understand financial performance, identify potential risks, and make data-driven decisions for long-term sustainability. Partnering with specialists who understand the Australian not-for-profit sector can simplify compliance while providing meaningful financial insights.
Keeping Company is an award-winning outsourced bookkeeping service in Sydney that works with Australian NFPs to provide tailored bookkeeping, accounting, CFO advisory, and financial reporting services. From EOFY reporting and ACNC compliance to ongoing financial management, our experienced team helps NFPs gain the clarity and confidence needed to focus on what matters most—their mission.
Contact us today to learn how our specialised not-for-profit accounting and bookkeeping services can help strengthen your financial reporting and drive your NFP’s future success.
The material and contents provided in this publication are informative in nature only. It is not intended to be advice, and you should not act specifically on the basis of this information alone. If expert assistance is required, professional advice should be obtained.
Ryan Miller is the founder of Keeping Company, May 2011 – Present. A tie-loathing, people person with an entrepreneurial spirit. Ryan’s drive to modernize the accounting industry coupled with his desire to help people succeed saw the birth of Keeping Company. Focusing on the SME space, KeepingCo. empowers business owners by providing high-quality end-to-end accounting and business advisory services.
Ryan took his first Accounting role working at KPMG. He went onto further refine his skills as a Chartered Accountant taking the role of Director of a Chartered Accounting firm in Erskineville.
Ryan is a fully qualified Chartered Accountant and a member of the Institute for Chartered Accountants Australia and New Zealand. He is also a Registered Tax Agent and holds a Bachelor of Commerce from the University of South Australia.