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[Music] hey this is Alex from applos Academy today were gonna take a look at financial statements otherwise known as reports if youve begun to create a non profit chart of accounts and record transactions this is the course for you so what are financial statements over the past couple of lessons weve taken a look at how to create an accounting system for your nonprofit the first step is to create a chart of accounts and then to use those accounts and transactions once those things are done then you can begin to compile that information into reports otherwise known as financial statements today were gonna take a look at the two reports that everybody needs to know the 3 reports that are specific to nonprofits and then other types of reports that might be beneficial for your nonprofit the first report is called your balance sheet which for a nonprofit is known as the statement of financial position this report shows the accounting equation which is your assets equal your liabilities
