Every business professional hates audits. They start looking for realistic solutions to lessen the discomfort of the process. Having a good team can help a lot when it comes to easing the preparation for the audit. Independent inspections can be tiresome and become considerably more complicated if the state or federal government demands that you undertake one at your nonprofit organization or a business. Sattiraju & Tharney, LLP in New Jersey, can help you with all your needs.
Get ready for the audit.
Create a schedule and matching checklist to make sure you have enough time to compile all the relevant paperwork and make any necessary revisions throughout the process. This is one of the strategies to reduce the stress brought on by an independent audit. Consider adding to-do lists as you go forward and making 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.
- Keep track of all purchases and transactions.
- Check the accuracy of financial reporting.
- All financials, comprising savings, checking, and investment accounts, should be reconciled.
- Assemble the pertinent financial papers. For instance, you should 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.
This process does not have to seem overwhelming if you have a well-crafted checklist. This part will house the majority of the documentation. This is also your chance to meet with and question your auditing company to make sure you have provided them with all the information they need.
Prior to the auditing process starting, it is helpful to know who could require the audit after it is complete. Examine your organization’s bylaws to discover whether the founders mandated any particular steps that need to be followed throughout your audit, along with the frequency at which they should be completed.
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 reasonably precise cost information and in line with your budget.