This Fact Sheet provides information about the legal rules non-profits must follow for keeping official records about its finances.
Non-profits must keep and store certain financial records. Section 20 of the Societies Act requires non-profits to keep records of its financial statements and auditors’ reports (if any) on those financial statements. Best practice is for non-profits to also keep up-to-date and detailed accounting records. Financial statements and accounting records are not the same thing.
| Financial Statements Broad Overview of Financial Position |
Accounting Records (aka General Ledger) Detailed Individual Financial Transactions |
|
Income Statement |
Date and amount of deposits and withdrawals |
|
Balance Sheet (Statement of Financial Position) |
Cheque numbers |
|
Statement of Cash Flows |
Bank account numbers |
|
Equity Statement
|
Daily balances |
|
*must be approved by the membership |
Bank statements |
|
Donation receipts |
Financial statements should be stored in the non-profit’s official records folder. Accounting records change frequently so it is best to not keep these records in the official records folder. Instead, there should be a notation in the official records folder about where to find the accounting records. A non-profit can restrict access to the accounting records in its bylaws.
