How to draw up a financial statement for an association?

The freedom of association, although very extensive in France, nevertheless requires that an annual balance sheet be drawn up for each association's financial activities. In practical terms, this means that a financial statement must be drawn up at the end of each financial year.

This ensures a degree of transparency in the management of accounts, in accordance with the statutes governing 1901 law" associations. This document also enables us to take stock of the association's income, expenditure and assets, in order to improve its operation, or to set objectives for the following year.

In practice, not all associations are obliged to draw up a financial statement. Which ones are? How do I draw up a balance sheet?

Discover the answers in this article!

Is it necessary to draw up a financial statement for my association?

All "1901 law" associations are required to keep simplifiedaccounts. To do so, they must draw up a simple register of income and expenditure.

However, not all associations are required to draw up a financial statement. The associations concerned must meet the following criteria:

• Receive public funding of at least €153,000 per year
• Have a profit-making activity that exceeds two of the following thresholds: have a balance sheet exceeding 3.1 million euros, have sales exceeding 1.55 million euros, have more than 50 employees.
• Carrying on a commercial and taxable activity
• Be financed for more than 50% of its budget by local authorities or for more than €75,000
• be recognized as being of public utility or general interest
• Be an approved parity body
• Be approved by a public authority
• Have as its exclusive purpose assistance, charity, scientific or medical research and be recognized as such by decree
• Manage one or more establishments in the health and social sector
• Be an organization that appeals to public generosity
• Be an election financing association
• Be a securities-issuing association
• Be a sports association with special status or a sports federation

What should an association's balance sheet contain?

Your balance sheet should consist of three main documents.

The first step is to draw up a balance sheet, distinguishing between the association's assets and liabilities. Assets correspond to the association's assets, while liabilities correspond to the resources used to finance them.

Assets include various items such as fixed assets, inventories, trade receivables and cash. Liabilities include shareholders' equity, net income for the year, provisions and debts.

The next step is to draw up an income statement.

This measures the association's wealth creation over the last financial year. It distinguishes between income (operating income, financial income and exceptional income) and expenses (operating expenses, financial expenses and exceptional expenses).

You can also attach an appendix containing additional documents to expand on the two above-mentioned documents.

In 2020, a new chart of accounts for associations was published by the authorities. You'll need to draw inspiration from it if you're going to succeed.

When should an association's financial statements be drawn up?

The financial statement must be drawn up at the end of the financial year. This depends on the date set out in the association's articles of association. In some cases, the government can set the date itself.

For certain seasonal associations, it is preferable to draw up the balance sheet at the end of the busy season. For example, if you're a water sports association in a seaside resort, you'll need to close your accounts at the end of the tourist season.

Running an association can be a time-consuming and labor-intensive business. Fortunately, there is a solution to simplify your day-to-day running. Have you considered domiciliation for your association?

Using the services of a domiciliation company allows you to obtain an address in a business center.

Much more than just a mailbox, domiciliation companies lighten your daily routine by taking care of a host of tedious, low-value-added tasks: daily mail management, switchboard with call forwarding, administrative, accounting and legal assistance, and meeting room rental are all at your disposal.

With SeDomicilier, all it takes is 5 minutes! All your services are then available in a personalized, secure virtual office!