2023 has been flying by! Many non-profit organizations’ fiscal year-ends are just around the corner! There are several things you can do to ensure your non-profit is audit ready. It’s important to have tight internal accounting controls, organized financial processes and timely month-end closing and review of your financial statements. The best way to prepare, however, is to keep your CPA informed throughout the year. Remember to make a list of any account or business changes you have not discussed with your CPA to discuss at year-end.
The following guidelines will help you think like an auditor in preparation of your non-profit’s year-end audit.
Compare reconciliations, year-end statements, and other supporting schedules to general ledger balances to ensure that they agree. This should include, but is not limited to, the following:
Accounts receivable and accounts payable aging schedules
Amortization schedules for note agreements
Bank and credit card reconciliations
Investment account statements
Supporting schedules for prepaid assets
Donation or Revenue Records
Gather copies of any new or amended agreements for your CPA. These agreements should include, but are not limited to, the following:
Complete any year-end request and inquiry lists provided by your CPA.
Accumulate board and committee meeting minutes for the year
Update Board of Director Listing for the year
Evaluate your fixed assets for disposals and additions so you may appropriately update related depreciation schedules.
Make sure you have supporting invoices close by for new fixed asset additions that your CPA may have questions about (cost, date acquired, location used, VIN # or unique identifier for the new asset)
Maintain documentation for journal entries and in-kind donations.
Provide updated accounting policy and/or procedure documents to your CPA.
Record donations to your non-profit, including in-kind.
Please do not hesitate to reach out to the accounting professionals at Gilliam Bell Moser LLP if you have any questions regarding information your CPAs may need for your non-profit organization’s audit.