By Jim Simpson, CPA and director, Financial Technologies & Management

The way nonprofits prepare and present financial reports is about to change. It is the first significant changes in over 20 years. In 2011, the Nonprofit Advisory Committee recommended modification of the 1993 financial reporting mode to the Financial Accounting Standards Board (FASB). In April, the FASB issued an exposure draft that proposed updated accounting standards. The released draft has a comment period that ends on Aug. 20.

So what does this mean for your nonprofit organization?

Before the change is official, you may want to consider formal training for board and staff members. It may be good idea to adopt some of the proposed changes before they are mandatory because they will create more relevant financials and comparable measurements.