Nonprofit organizations should undergo annual financial audits in order to ensure they remain fiscally secure and are utilizing their resources wisely. Being prepared at any time for an audit can ease the minds of the entire team and ensure your organization is always operating at maximum capacity. If your organization is not ready for an audit, if the thought of an audit keeps you up at night, you may need to consider revising your financial management processes and ensure you are using the right Accounting Software for nonprofits.
Organizations take a gamble when they try and cobble together information from a variety of disparate sources and systems. Working with data stored in too many different systems typically creates inconsistencies in reporting and makes it very difficult (if not impossible) for an auditor to follow audit trails and replicate reports on a consistent basis.
In the long run, disjointed and inconsistent reporting and data can cost your organization money, extend audit time, increase risk for mistakes and raise possible compliance issues for your organization. Worst of all, a troubling or failed audit can put an organization at further risk of losing important board and donor trust.
Don’t lose sleep over thoughts of an audit nightmare. Be proactive and follow easy steps for better financial management, tracking and reporting across the entire organization to ensure you’re always audit-ready:
Take a good, hard look, do you have accounting software for nonprofits that is built to meet the needs of your organization and offers true fund accounting capabilities? Ask yourself:
- Does my current system provide the flexibility needed in the chart of accounts?
- Am I able to track and report out on spending and revenues associated with each of our programs? How much time am I spending in my current system to do so?
- Could my auditor easily review the creation and approval process of any requisition in my system?
- Does my current system allow me to track and allocate revenues and expenses to the right funds?
- Ensure you can maintain financial data that allows you to easily prepare recurring or ad-hoc reports for internal audits, external audits or board member reviews
- Seek to show accountability and transparency through reliable data and consistent reporting
Here at RBP Methods we offer a variety of accounting software solutions. We are committed to providing each of our clients the best possible solution to meet their unique business needs. That is why we offer more than one solution. If you are in need of accounting software for nonprofits to ensure that you don’t get caught in an audit nightmare, contact us, today.