Getting started with financial reporting can feel like a big task, especially with all the new terms and requirements. But don't worry, you're in the right place. This guide is designed to break down "Tier 4" reporting into simple, manageable steps.
The great news is that the Tier 4 standard is specifically designed for smaller organisations. Its main goal isn't to catch you out, but to help you tell your story clearly and build trust with your community, your members, and your funders.
Need an example?
Check out our example Tier 4 statements here >
In this guide:
Not-for-profit (NFP) organisations, such as charities and incorporated societies, have different reporting requirements based on their size. These levels are called "Tiers."
Generally, you are in Tier 4 if your organisation spent $140,000 or less for the year.
There are a small number of other conditions, but chances are, if you're reading this guide, they do not apply to you.
Key concept:
The short answer is transparency and trust.
As a not-for-profit, you're likely operating for a community purpose and receiving funds from grants, donations, and memberships. Your supporters and the public want to know that you're using that money wisely to achieve your mission.
This report is your financial story. It answers three key questions:
By preparing this report, you're able to attract funding, volunteers, and community support. Registered charities (and incorporated societies from April 2026) are required to complete financial reporting every year to stay registered.
The Tier 4 report (often called a "Performance Report" or "Financial Statements") is made up of a few key building blocks. Here’s a quick overview of each of them:
Next, let's dive into these sections one by one to explain them in a bit more detail. From here on out, we're going to refer to the simplified or minimum requirement Tier 4 template only.
Simplified Tier 4 templates you can use:
Starting easy. Here's the first section of the performance report:
What to enter in each box:
Here is an example of the section filled out for a fictional charity, "The Best Numbers Charitable Trust."
If you're starting from scratch, the SSP section will look like this:
Think of the SSP as the story behind your financials: who you helped, what services you provided, and the difference you made. For Tier 4 charities, this doesn’t need to be complicated—it’s usually a list of simple measures that matter most to your group.
Good Numbers made a full, separate guide to completing the SSP. We recommend checking it out here: What is a Statement of Service Performance?
Here is an example of a completed statement of service performance for a small community gardening trust:
OK, buckle in, because this is where the numbers kick in big time.
The statement of cash received and cash paid is best treated as five subsections:
Preparing the first three subsections of this part of the performance report is quite technical. Because of that, we've created a separate guide specifically to cover off cash received from operating activities, cash paid for operating activities, cash received from other activities and cash paid for other activities. You can check it out here: Preparing the Statement of Cash Received and Cash Paid
Once you have entered your transactions into the above subsections, the changes in cash subsection will look something like this:
Here's what this shows:
We're back on solid ground here. This subsection is just a snapshot of your bank accounts on your year-end date. On a blank template, it will look like this:
Here:
Total cash balances held is supposed to match the Closing balance and bank account(s) and any cash on hand line in the sub-section above. When it does, the red 'false' goes away, so you know that they match. Here is an example where last year's balances match, but this year's do not:
This year's figure is off by just $1. It's ok to leave as is, but if you can, you should try to find the $1 error so your report is perfect. It's usually a little fee that was missed or a small typo.
If the figures differ significantly, you should review this entire section to understand the reason for the discrepancy. Something has likely been entered incorrectly.
Phew, made it. We promise that the notes section is much gentler than the last.
First up, you'll see a couple of mandatory sections describing why you've used the Tier 4 accounts and stating that your organisation is not registered for GST. Just leave them alone, nothing to see or do here.
Here, you're going to list any significant assets that your organisation owns. Examples include land, buildings, vehicles, shares and loans your organisation has made to others.
Unless they were very expensive or you have a lot of them, you do not need to record things like computers, office desks and chairs, and so on. For many organisations, this section might be all $0. You can list assets here that you were given as well (not just ones you paid for).
Here is an example of a fictional charitable trust, Grey Lynn Landcare:
The green box is provided for you to give a brief description of how you know how much your assets are worth. This doesn't need to be a complicated process. Generally, a Rates Bill, investment statement or a quick search on Trade Me will either explicitly tell you, or give you a general idea of how much these are worth. What's important is that these values should fairly represent the assets if you were to sell them.
Similar to assets, but for anything you owe to another organisation or person. Examples include a bank loan, a mortgage, or amounts you've borrowed to buy a vehicle. Again, for many organisations, all values in this section will be $0.
Tip: you can use money held on behalf of others if you are fund-holding for another organisation.
These are when someone who helps make decisions about how money is spent in the organisation also receives money or benefits from the organisation. As part of being transparent and trustworthy, you should list if a trustee, board member, or someone related to them was paid to do something on behalf of your organisation.
Fortunately, Good Numbers has also prepared a full guide on this section if you need it: What are Related Party Transactions?
Here is an example for a local community hall:
In this example:
Can we report no transactions with close relationships?
Of course! Many organisations have no related party transactions.
You made it! Final question.
This is a field where you can make a short comment about whether you had to change any of the numbers that you included in your performance report last year. You might have to do this if, for example, you found a cash donation hiding in a drawer, or you calculated one of your numbers in the statement of service performance incorrectly.
Most of the time, this will just be none, for no change, as seen in this example:
Once you've completed your Performance Report and are ready to file it with Charity Services, we suggest:
Whichever is your preference. In Excel:
The formatting is set up correctly so that this will produce a clean, 5-page document.
You must approve the performance report officially on behalf of your organisation. This may either be done by your board for a charitable trust, or must be done at a meeting of the members for an incorporated society. Check your trust deed, rules, or constitution to determine what is required.
Once approved, one or two representatives from your organisation can sign the performance report. This is the section we skipped over early on, right underneath the Statement of Service Performance (SSP).
Once signed, make sure you save the signed copy in a secure place in your organisation's filing system. Then you are ready to file your performance report with Charities Services, the Incorporated Societies Register, or any other place that you are required to file them. You can also use the performance report to support your funding applications, your annual report to members, and much more.
The official standard directly from the people who set the rules (the External Reporting Board) can find it here: Reporting Requirements for Tier 4 Not-for-Profit Entities (XRB).
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