“The best preparation for tomorrow is doing your best today.” -H. Jackson Brown, Jr.
Spring has sprung. The grass is green and it’s time for an audit. No, that isn’t really how the saying goes but it might be time to plan for your audit. Sometimes the audit process can be somewhat lengthy, but wise planning on the front side of it can make life much easier as you work through it. The best time to start planning is today.
One of the first things to do to plan for an audit is to consider the efficiency of your software. Trying to pull data from several different systems to formulate into a report can not only cost your nonprofit efficiency but it will most likely result in inaccuracies. Compliance issues are the end result of inaccuracies. It is very difficult for an auditor to stay on track with the necessary financial reports when trying to follow trails of data inaccuracies. Be proactive and verify that your software is up-to-date with a solid coverage of all your accounting needs. This is an essential step which can eliminate a lot of audit stress and also many hours of unnecessary labor.
Important software questions to ask:
- Do I have the necessary flexibility in the chart of accounts in my current system?
- Do I have the ability to track and report on spending and revenues with efficiency in current accounting systems?
- Is my requisition process easy to review and understand?
- Am I able to allocate revenues and expenses to the correct funds?
- Is my financial data well-maintained to allow for easy preparation of reports, internal, and external audits?
- Do financial data and reports consistently show accountability and transparency?
Upcoming Webinar on April 27, 2016
If you answered no to any of the above questions, you will want to seek experienced advisors to help you make the best decision in what will make your business run more smoothly. Register today for a no cost webinar, “Nonprofit Accounting Experts Sharing Best Practices for Selecting Accounting Software,” April 27 at 2 pm EST. Click here to register.
Beck & Company CPAs has over 25 years of experience in helping small to mid-size nonprofits and businesses creatively solve accounting issues. Let us put our high-quality, professional expertise to work for you. Call us today at 703-834-0776 for a consultation to see how we can put our professional expertise to work for you.