Not-for-profit accounting: a practical guide for Kingdom organisations

In launching For Kingdom Breakthrough, we wanted to create an outsourced accounting firm

that not only understood the unique nature of not-for-profit organisations, but also the calling

of Kingdom organisations.

Not-for-profit accounting requires a personable approach, recognising the story of impact

behind the numbers. Providers in this space should be intricately aware of the work you do,

the growth opportunities, and the purpose of your ministry. To be able to add value to your

accounts, your outsourced provider should be an extension of your team: providing insights,

structuring your reports to better serve your decision-making, and having information

available in real time.

What your provider should deliver

In particular, your outsourced accounting provider should be providing your management

team and board with detailed program allocations to best track and acquit grant funding, able

to distinguish and correctly account for restricted versus unrestricted income, and lead the

preparation of financial reporting for key deadlines (including ACNC’s Annual Information

Statement, FBT and BAS, grant acquittals, budgets, and audits).

A new reporting standard: AASB 1061

A recent industry update is the introduction of a new ‘Tier 3’ reporting standard: AASB 1061,

the General Purpose Financial Statements standard for Not-for-Profit Private Sector Tier 3

Entities. The standard is designed to provide smaller private sector NFPs with a simplified,

purpose-built general purpose financial reporting framework that reduces the burden while

improving the quality and comparability of financial statements across the sector. While this

new reporting is not mandated until 2029, accounting firms specialising in this space should

be across these changes and providing applicable guidance.

In stewarding your financials well, boards (or elders) should be reading financial reports to

ensure that your financials are aligned with mission. Boards of ministries have the same

director liabilities as other companies, including the requirement to ensure that the ministry is

solvent and that financial reports are a true and accurate representation of your ministry. In

recognising that many board members and management teams do not have financial

acumen or confidence in reading and understanding financial statements, the accounting

team are responsible for growing financial literacy. One key way to achieve this is through

presenting financial reports in a variety of formats so people can access this information in

different ways.

Partner with people who know the sector

Good not-for-profit accounting is about far more than keeping the books in order. It is

about insight, accurate program and grant reporting, and a team that stays across

changes like the new AASB 1061 standard so you do not have to.

For Kingdom Breakthrough was built to be that extension of your team, helping your

management and board see the story behind the numbers and make confident,

mission-aligned decisions. If you would like reporting that genuinely serves your

ministry, delivered by a partner who shares your sense of calling, we would love to

hear from you.

Get in touch to talk about how we can support your organisation and the work you are

called to do.