As the New Year approaches, your organization is likely preparing for new opportunities, resolutions and goals. This season is the perfect time to lay the groundwork for a 2016 full of success.
And of course, auditing time is just around the corner. Wait, where’d you go?
Seriously though, just the mere mention of auditing is enough to ignite a sense of panic in most offices. While not exactly professional, the reaction is perfectly reasonable as it is a stressful time of year for accountants and executives alike.
However, the right pre-audit planning can set you and your team on the course to smooth sailing. If you’re looking for calmer seas, follow these expert tips for successful navigation.
About Pre-Audit Planning
The Merriam-Webster dictionary defines an audit as: “a formal examination of an organization’s or individual’s accounts or financial situation.”
Notice that nowhere in that definition did they reference a “gotcha!” situation. But for many accountants, it can sure feel that way. The fear of making a career-ending mistake can paralyze many professionals in the pre-auditing planning process.
But the truth is the real purpose of auditing is simply to make sure your financial information, internal operations and business practices are all in order.
While people may joke about underwear selections, most auditors only come to review your year-end bank statements, charitable contributions, and other professional records that may give an insight into your organization’s health.
Making the Process a Success
When your documents are all in good shape, you’ll need to organize them into a digital folder for easy review. Don’t forget to make copies of any physical documents.
Make sure you have copies of your grant awards, related contracts, payroll taxes, W-2 and 1099s. Next, appoint someone to organize the visit.
You’ll want to take a look at the schedule during this time and make sure you have a quiet, comfortable place for auditors to review. Any important meetings or events should be scheduled off-site or postponed.
When you’re pre-audit planning, you’ll likely come across many ways to improve your organization’s accounting system. Take time to note areas you’d like to streamline and workflows you’d like to put in place.
A nonprofit-friendly financial management solution can take the fear out of pre-audit planning for your team. Imagine having the files and documents you need at the tip of your fingertips instead of stored across multiple systems (or, shudder, filing cabinets).
Abila MIP Fund Accounting is used by many nonprofit organizations to make reporting, budgeting and managing more successful.
It goes beyond traditional commercial accounting software to meet your organization’s needs including ACA reporting compliance, multiple fund management, and the tracking of individual funds from multiple sources.
You’ll avoid auditing nightmares like inconsistent financial statements, lack of internal control and multiple allocations. It’s truly a comprehensive solution for improving existing process and optimizing new procedures. Best of all, Abila offers customization for a more flexible approach that grows with your organization.
At SYGNVS we offer personalized IT solutions, including Abila MIP Fund Accounting, designed to meet the needs of every nonprofit organization. Further, our team provides training and support to make integrating new software a seamless and painless process. For a free demo of Abila and to learn more about our other IT services, contact the SYGNVS team today!