Summary: our previous article was on the balance sheet, and
after our review below of the income statement, a subsequent
installment will cover internal controls and cash management.
Our vision for this series is to present a basic financial
review and best practices for co-ops. Accounting best practices
are derived from GAAP (Generally Accepted Accounting
Principles), and many involve tax laws and requirements. Our
review here is primarily concerned with presenting consistent,
accurate information for interpretation and not with the
interpretation of those amounts. A qualified accountant is an
important resource in ensuring that the numbers you have on your
financial statements are accurate and follow tax and legal
requirements. If you are not certain what a specific financial
statement entry item is, how to calculate it, or where to
include it, please don’t guess. For many people, the income
statement (also called profit and loss statement) is the only
financial statement that they ever see or review. While