Nonprofit organization represent broad term. Therefore, under the term of non-profit organizations we mean on those organizations whose primary goal is not achievement of profit, but their activity is based on providing the service to society and indulgence of public interest. Financial reporting in nonprofit organizations is regulated by the Law of the financial operations and accounting of nonprofit organizations, and by the Rule book on nonprofit accounting and the Register of nonprofit organizations. All nonprofit organizations are obliged to compile and submit financial reports, and obligation of financial reporting depends on the method of bookkeeping guidance. Thus, the financial reporting system for nonprofit organizations can be divided into financial reporting in the simple bookkeeping system and financial reporting in double-entry bookkeeping. Difference between these two systems is reflected in the type of financial reports they are obliged to compile and submit. Financial reporting is an important aspect of the business of nonprofit organizations because they provide objective and realistic image about financial position, and give insight into the state and structure, and also present changes in the value and volume of assets, liabilities, own resources, revenues and expenses.