Audits are never fun, but being prepared can help relieve a ton of pressure. Start prepping early so you can be ready when the auditor arrives. Talk to your accounting and administrative staff and get them working on the items below. Being prepared can help save you time and money!
- Ask your auditor for a list of documents to gather. This is the best place to start. Review the list, see what you need to gather, and estimate how much time you need to do so. Wait to pick an audit date until you have an idea of how long it will take you to gather items and work on the additional items below.
- Review a detail of income and expense transactions. Take a quick look at the prior years’ transactions to catch any miscoded or mis-classed items.
- Gather donor information. Donors who gave $5,000 or more during the year will be reported on the 990. Make sure you have donor names and addresses to provide to the auditor.
- Double check what’s sitting in grants receivable. Gather information regarding multi-year loans, and confirm any grants received from the prior closed year properly offset the grants receivable account.
- Double check all liabilities. Confirm that ending balances for loans, accrued PTO, and other payroll liabilities are correct.
- Make sure prior year ending balances match prior year return. Double check that account beginning balances match the ending balances for the prior year’s 990.
If you need help preparing for your audit, contact our office today!