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
  • Additional preparations include:
    • 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.