Organizations, even nonprofits with volunteer boards, need to be able to produce financial statements and reports at any given time. An inability to do so, accurately and consistently can lead to audit nightmares for you and your auditors. This can leave your organization at risk for timely and expensive audits, thus highlighting the need for a comprehensive fund accounting software solution.
The exposure is damaging can lead to a lack of apparent oversight for the handling of finances, increased potential for mistakes that can cost time and money, misrepresentation or inaccurate portrayal of the organization’s financial health, and greater exposure to potential fraud.
Be proactive and follow easy steps for better financial management, tracking, and reporting across the entire organization to avoid an audit nightmare, such as:
Take an honest assessment of your current accounting software:
- Does my accounting software offer true fund accounting capabilities?
- Does my accounting solution offer access to a custom report writer and standard reports that are designed for nonprofits?
- Can I produce reports consistently and accurately each and every time with little to no fuss?
- Can my auditor easily recreate reporting to ensure accuracy in our organization’s financial statements?
Ensure you can produce financial reports that are accurate, timely, in context, and readily available on a monthly or quarterly basis. They should include a configurable chart of account, year-end donor summaries, and other standard reports.
Evaluate your ability to create reports that match the purpose. Most boards look at financial reports for four reasons:
- To comply with financial standards
- To evaluate effectiveness
- For forward planning
- Or to take action
Avoid the unnecessary stress and anticipation of an audit failure – know where your organization might be at risk and the steps you can take to mitigate that risk so you can rest easy.
With the right tools and preparation, audits can be successful. However, this will only be the case, with the assistance from a nonprofit accounting software. This technology can help get the job done by providing the necessary data in an available and usable format. To learn more about fund accounting software options such as Abila MIP Fund Accounting or AccuFund Accounting and to get the solution that is best for your nonprofit, contact RBP Methods.