Did you know that you can glean important business insights from nonprofit accounting audits? Nonprofit accounting audit services may seem like a necessary annual expense to adhere to the law when it comes to running a nonprofit organization. However, a good audit is worth so much more. Auditing services provide valuable information that can be used to improve many areas of your nonprofit organization.
Many nonprofit organizations are leaving valuable information in the files without understanding how an audit can help them. Here’s how you can leverage your audits for better nonprofit financial management.
Improve Business Performance
According to Deloitte, audits can be used to improve business performance. Currently, more than three-fourths of respondents to the Deloitte survey state that they use their annual audits as a benchmark against which they can check business performance. By examining key areas and financial information, they can assess how well their organization is performing against goals and where they may need to focus their attention in the future.
Finding the Information Needle in the Haystack
Another area in which nonprofit audits can be helpful is finding small pieces of information that have big ramifications. Such so-called information “needles” in the haystack of information may be enough to use as a springboard for improvement. The audit process may uncover such small bits more readily than typical business processes because audits examine everything in an organization’s business and finances.
Learning About Their Market
Another area in which audits may prove valuable is to learn more about the industry and market in which nonprofits work. Auditors who work with multiple organizations may provide insights into industry trends and marketplace knowledge which can be used to improve a nonprofit organization’s ability to compete in the marketplace.
Keeping an Open Mind and Communicating with Auditors
Two things are essential to getting the most value from your audit: keeping an open mind and communicating well with your auditors.
The auditing team may make suggestions or point to information in your audit which can be difficult to accept. It can be a struggle to keep an open mind, but if you do, you can learn more from the audit.
Communicate your needs to the auditing team. Ask them for their expertise and business insights. They will probably be glad to help! Most nonprofit accounting audit services are intended to help organizations grow stronger. It’s more than about compliance with the law; it’s about building better organizations.
As part of your nonprofit financial management, you can gain many business insights from a nonprofit accounting audit service. Work with your auditing team to set expectations and build a process by which their findings and insights can be communicated to the right people within your organization so that every bit of information can be shared and used to make your nonprofit stronger.
Nonprofit Accounting Audit Service with Beck & Company
Beck & Company is a Washington D.C. area nonprofit accounting firm with a team of expert auditors, accountants, and advisors available to help nonprofits of all sizes. We provide a variety of consulting, auditing, and accounting services and blend knowledge from the accounting and nonprofit worlds to help you improve operations and efficiency. For more information, please contact us at 703-834-0776 x 8001.