Financial Statements: It is important to prepare financial statements on a regular basis irrespective of the requirement of donor agencies. The frequency of these statements should at least be on a monthly basis. These statements could be prepared separately for each project as per the approved budget and also a cumulative statement from which you could get the information of the overall funding each project-wise and also the expenditure made till that period could be know. See Budget Variance Monthly/Quarterly Financial Statements: The best option for any NGO is to prepare the Monthly Financial Statements which could be linked to quarterly, six monthly and the annual statement. By doing this the organization concerned need not have to prepare the quarterly/six monthly and annual statements separately.
Review of Financial Statements: The financial statements needs to be reviewed regularly so that it will not only help knowing the financial status of that project but will also help to keep track of the activities /programmes are taking place as planned.