Unaudited Financial Statements
J O’Connor Pty Ltd explains unaudited financial statements, including when they may be suitable for Queensland associations, charities and small organisations, and the differences between unaudited accounts, reviews and external audits.
We Understand the Challenges — and Offer Practical Solutions
Many community organisations find themselves behind in record-keeping or without an audit or review for several years. At J O’Connor Pty Ltd, we understand that financial management in the not-for-profit sector is often handled by dedicated volunteers doing their best with limited time and resources.
Rather than focusing on what hasn’t been done, our approach is to help you move forward with confidence. We work alongside specialist bookkeepers experienced in the not-for-profit and community sector who can assist your committee to:
Reconcile and update Xero or MYOB accounts
Organise and document past transactions
Prepare accurate financial statements ready for review or audit
If your records need attention before we begin, we can connect you with one of these professionals to help ensure your accounts are ready. Once your records are up to date, we can complete your financial review or audit within two weeks, helping your organisation return to compliance quickly and calmly.
Our goal is simple: to remove the fear of poor accounting records and replace it with clear, achievable steps toward compliance and confidence.
Free Simple Cashbook Template
For organisations without accounting software, we’ve created a simple Excel cashbook to help you record receipts and payments accurately. Designed for small community associations, clubs, and charities, this tool supports clear record-keeping and transparency — without complex formulas or macros.
Compatible with Microsoft Excel. Created by J O’Connor Pty Ltd to assist small not-for-profits in meeting record-keeping obligations under the Associations Incorporation Act 1981 (Qld).
The most common errors we find.
Many small and community organisations prepare unaudited financial statements in Xero or MYOB without an independent review. While this approach can save time, it often leads to avoidable errors that affect compliance and transparency.
At J O’Connor Pty Ltd, we frequently identify common issues during reviews and audits — particularly in community associations, clubs, and not-for-profits.
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Many organisations exceed the GST turnover threshold but remain unregistered. This results in inaccurate reporting, missed GST credits, and compliance risks with the ATO.
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Xero or MYOB bank reconciliations are often incomplete or skipped. This leads to incorrect cash balances and can hide duplicate transactions or missing deposits.
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Duplicate entries for invoices or expenses inflate expenditure and reduce the reported surplus. Regular reviews and audit procedures are key to identifying and correcting these issues.
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Missing invoices or receipts create a significant risk of misuse of funds, duplicate or unauthorised payments, and non-compliance with audit and governance requirements. Under both the Associations Incorporation Act (Qld) and the Australian Charities and Not-for-profits Commission Act 2012, all expenditure must be properly documented and supported to verify that payments were made for legitimate organisational purposes. Failing to keep adequate records can lead to audit qualification, repayment of funds, or loss of grant eligibility.
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Failing to register for Single Touch Payroll (STP), superannuation, or workers compensation exposes an organisation to significant statutory and financial risks. Under the Australian Charities and Not-for-profits Commission Act 2012, the Fair Work Act 2009, and relevant state workers compensation laws, all employers are required to report employee earnings through STP, make timely superannuation contributions, and maintain workers compensation coverage. Non-compliance can result in ATO penalties, loss of funding eligibility, and personal liability for committee members if employee entitlements are unpaid.
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Not maintaining an asset register or depreciation schedule creates a risk of misstated financial position, loss of assets, and non-compliance with statutory reporting obligations. Under the Associations Incorporation Act 1981 (Qld), incorporated associations are required to keep accurate accounting records, including details of assets and their value, to properly reflect the organisation’s financial affairs. Without an up-to-date asset register, committees cannot verify ownership, monitor asset condition, or ensure assets are adequately insured.
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Failure to stay informed about legislative changes under the Associations Incorporation Act 1981 (Qld) and the Australian Charities and Not-for-profits Commission Act 2012 can result in significant governance and reporting breaches. These Acts require committee members to ensure that financial records are properly kept, annual statements and reports are lodged on time, and the organisation continues to meet eligibility and accountability standards. Recent amendments to both Acts have strengthened director and officer duties, reporting thresholds, and related-party disclosure requirements. Lack of compliance may lead to loss of registration, funding ineligibility, or personal liability for management committee members.
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Many community organisations are unsure of the difference between cash and accrual accounting, yet choosing the wrong method can lead to misstated income and expenses.
Under the Associations Incorporation Act 1981 (Qld) and the Australian Charities and Not-for-profits Commission Act 2012, financial statements must accurately reflect the organisation’s financial performance and position.
In cash accounting, income and expenses are recorded only when money changes hands — for example, a grant payment received in July is counted entirely in that year, even if some funds relate to the following period.
In accrual accounting, income and expenses are recorded when they are earned or incurred, not when cash is received or paid — so part of that grant would be deferred to the next year to match the related expenses.
Using the incorrect method can distort results, make budgets unreliable, and create difficulties when reconciling with audit or funding requirements.
Why These Errors Matter.
Even small bookkeeping mistakes can distort your organisation’s financial position and lead to serious compliance risks. Unaudited statements may appear balanced, but unreconciled accounts, missing GST, or duplicate payments can quietly erode available funds. In many cases, questions only arise when there’s no money left to pay bills — when bank balances don’t match reports, or when a committee suddenly notices a cash shortfall. By then, it’s often too late to make simple corrections.
An independent financial review provides an early warning system. We identify discrepancies, explain their impact, and help ensure your organisation’s reports are accurate, transparent, and ready for decision-making.
Final Call to Action
Let’s make compliance clear, calm, and straightforward — so you can stay focused on your mission.
Request a Quote or Tender (20% discount 1st year)*
To prepare an accurate audit quote or tender, we just need a few key details from you:
Legal name of your organisation
Accounting software or cashbook used (e.g. Xero, MYOB, Excel, manual records)
Last year’s financial statements or
Total revenue and total wages for the previous financial year
Total current assets as of your most recent year-end date
You’re welcome to email these through or request a secure Dropbox link for upload.
Once we have this information, we’ll provide a clear, fixed-fee proposal tailored to your organisation.
*20% discount is only for organisations that are currently not being reviewed or audited by an external accountant or auditor.