Expenses Reporting Changes Ahead for Nonprofits

Jun 23, 2023
Tax and Accounting

Welcome to Life Designers, your trusted partner in business and consumer services consulting and analytical services. In this article, we will dive into the expenses reporting changes set to take effect for nonprofits under FASB ASU 2016-14. Our team of experts at Life Design Consulting and Coaching is here to provide you with essential insights and guidance to navigate these changes successfully and drive your organization's growth.

Understanding FASB ASU 2016-14

FASB ASU 2016-14, also known as Accounting Standards Update 2016-14, introduces significant changes in expense reporting requirements for nonprofit organizations. These changes aim to improve transparency and provide more relevant information to stakeholders, donors, and the public.

Key Changes and Impact

The update requires nonprofits to classify expenses by their nature and function. Nature refers to the major categories of expenses, such as salaries, supplies, rent, etc., while function categorizes expenses based on their purpose, such as program services, management, and fundraising. This reclassification will allow stakeholders to gain clearer insights and analyze the organization's spending patterns more effectively.

Additionally, FASB ASU 2016-14 places a requirement to provide enhanced disclosures related to liquidity, including qualitative and quantitative information about the financial assets available to cover the organization's expenses within one year of the statement of financial position date.

Expert Guidance from Life Design Consulting and Coaching

At Life Designers, we understand the importance of adapting to regulatory changes and staying ahead in an evolving landscape. Our team of experienced consultants and coaches specializes in providing comprehensive support to nonprofits in managing their finances effectively.

Our Services

We offer a range of services tailored to help nonprofits navigate the expenses reporting changes under FASB ASU 2016-14:

  • Financial Analysis and Strategy Development: Our experts conduct a thorough analysis of your organization's financial situation and develop customized strategies to optimize expenses reporting.
  • Process Implementation: We guide you through the implementation of new processes and systems to align with the requirements of FASB ASU 2016-14.
  • Training and Education: Our team provides training and educational resources to empower your staff with the knowledge and skills needed to handle the new reporting guidelines seamlessly.
  • Compliance Support: We ensure your organization remains compliant with the updated standards and assist with the preparation of accurate and transparent financial statements.
  • Strategic Planning: Our consultants work closely with you to develop long-term strategic plans that align with the new regulations and help achieve your financial goals.

Why Choose Life Design Consulting and Coaching?

Life Designers is a leader in the field of business and consumer services consulting and analytical services. We pride ourselves on delivering exceptional guidance and support to nonprofits, empowering them to thrive in a changing landscape. Here's why we stand out:

  • Extensive Industry Experience: With years of industry experience, our team has a deep understanding of the unique challenges nonprofits face and the best strategies to overcome them.
  • Expertise and Knowledge: Our consultants stay up-to-date with the latest regulations, including FASB ASU 2016-14, ensuring you receive accurate and relevant advice.
  • Customized Approach: We recognize that every organization is unique. Our solutions are tailored to your specific needs, helping you achieve sustainable growth.
  • Collaborative Partnership: We work closely with you, fostering an open and collaborative environment to ensure effective communication and successful outcomes.
  • Long-Term Support: Our commitment to your success goes beyond initial implementation. We provide ongoing support and assistance as your organization evolves.

Don't let the expenses reporting changes under FASB ASU 2016-14 become a stumbling block for your nonprofit. Trust the experts at Life Designers to guide you through these changes and unlock new possibilities for growth and impact. Contact us today to learn more about our services and how we can help you thrive in this evolving financial landscape.