Every business professional hates audits. We offer some sensible solutions to lessen the discomfort of the process.
Independent inspections can be tiresome and become considerably more complicated if the state or federal government mandates that you undertake one at your nonprofit organization. An accountant in Atlanta, GA, can help you with all your accounting needs.
- Be aware of the non-profit audit requirements in and out.
Knowing who could need the audit when it is finished before the auditing process begins is helpful. Check the rules of your organization to see if the founders have specified any specific procedures that must take place during your audit, including how frequently they should be carried out.
- Make a schedule and checklist.
Create a schedule and matching checklist to make sure you have enough time to compile all the relevant paperwork and make any necessary revisions needed throughout the process. This is one of the strategies to reduce the stress brought on by an independent audit.
You may add to-do lists as you go forward and make this timeline so that everybody on your team is aware of what they have to collect and how they might contribute to the broader process.
- Seek out a certified auditing firm with expertise in dealing with non-profiting institutions.
Your plan and checklist should include finding an expert auditing firm as one of the initial tasks. Make sure you do not choose the first company you come across. Take the time to investigate businesses and look for characteristics such as:
- A team that has the necessary experience and training for an audit.
- A thorough background in dealing with nonprofit organizations.
- The ability to set deadlines and provide time estimates for the full auditing process.
- A capacity to offer cost information that is reasonably precise and in line with your budget.
- Get ready for the audit.
With a well-designed checklist, this procedure does not have to feel daunting. The majority of the documentation will be gathered in this area. The following are tasks you should make sure you have finished:
- Keep track of all purchases and transactions.
- Check the correctness of financial reporting.
- All financials, comprising savings, checking, and investment accounts, should be reconciled.
- Assemble the pertinent financial papers. For instance, you would probably include proof of any grant grants in the data collection process.
- Keep accurate records of all your paid expenses and any investments you make using overtime money.
In order to make sure you have given your auditing firm all the data they require, this is also the opportunity to meet with them and question them.