1. Gather financial documents
Collect all bank statements and financial records for the entire year, such as receipts for membership fees, donations, and expense receipts for events.
2. Categorize income and expenses
Create categories like “Membership fees,” “Donations,” “Event income,” and “Administrative expenses.”
3. Create an income statement
Example:
Income:
Membership fees: DKK 30,000
Donations: DKK 10,000
Event income: DKK 15,000
Expenses:
Administration: DKK 5,000
Event expenses: DKK 8,000
Result (surplus):
DKK 55,000 – DKK 13,000 = DKK 42,000
4. Create a balance sheet
Example:
Assets:
Cash: DKK 5,000
Bank accounts: DKK 40,000
Liabilities:
Debt: DKK 10,000
Assets (DKK 45,000) = Liabilities (DKK 10,000)
5. Create a transaction overview
Make a detailed list with date, description, and amount for all transactions. For example:
01/01/2023: Received membership fee from member A: DKK 500
15/02/2023: Paid invoice to supplier X for event: -DKK 1,000
Read more about what a transaction overview is here.
6. Auditor’s statement (optional)
If required by your bylaws, obtain an auditor’s statement from an independent auditor.
7. Prepare an annual report
Write a brief summary of the organization’s activities and financial situation during the fiscal year. Read here what an annual report is.
Click here to read more if your organization is small and would like to prepare a simpler report.