Having to undergo an audit can be stressful. However it doesn’t have to be when you use your nonprofit accounting software as a helpful resource.
With the right fund accounting software, nonprofits can easily organize and prepare themselves for an audit at any time.
What is a Nonprofit Audit?
An audit, as defined by The National Council of Nonprofits, is “the examination of the financial statements by an accounting professional to determine whether they conform to accounting standards.”
Audits on nonprofit organizations give funders, state regulatory agencies, board members, and other stakeholders an idea if the organization is being soundly financially managed.
Using Nonprofit Accounting Software to Prep
Fund accounting software programs, like Abila MIP, provide a variety of features to help nonprofits organize and prepare for an audit, should it become necessary. Here are some ways your accounting software can help:
- Using Export to Excel features: Being able to quickly and efficiently export your data into a spreadsheet is critical. Not only does this help you stay organized but also allows you to manipulate your data for reporting. Software applications like Drillpoint Reports, can make this even easier, allowing you to create custom, presentation-worthy reports. DrillPoint Reports also allows nonprofits to drill-down even deeper into their accounts, going from account balance to source transactions.
- Create user defined fields: User defined fields help keep accounts clean. They are especially helpful when you need to track special and charity events separately. By keeping accounts clean, you’re ensuring that your nonprofits’ financial situation is organized, making it easier when it comes time to do an audit.
In addition to using nonprofit accounting software, it’s also best to follow industry-standard accounting practices to ensure that your nonprofit is prepared for an audit. Having copies of financial reports on hand, properly distributing funds, and establishing nonprofit-wide accounting practices will help you stay organized and ready when it’s time for your next audit.