{"id":10070,"date":"2020-10-07T15:22:00","date_gmt":"2020-10-07T19:22:00","guid":{"rendered":"https:\/\/www.sage.com\/en-us\/blog\/?p=10070"},"modified":"2026-02-12T04:59:45","modified_gmt":"2026-02-12T09:59:45","slug":"audit-ready-financials-expedite-nonprofit-audits-and-enhance-transparency","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-us\/blog\/audit-ready-financials-expedite-nonprofit-audits-and-enhance-transparency\/","title":{"rendered":"Audit-ready financials expedite nonprofit audits and enhance transparency"},"content":{"rendered":"
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\n\t\t\t\t\t\tAudit-ready financials expedite nonprofit audits and enhance transparency\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t

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To advance your nonprofit\u2019s mission and drive long-term success, it\u2019s important to focus on building and maintaining your reputation. However, today\u2019s 24-hour-news-cycle amplified by social media sharing of stories about fraud, malfeasance, and poor financial leadership means nonprofit organizations must be extremely diligent about stewardship.<\/p>\n\n\n\n

Nonprofit organizations already face increased competition for funding and greater donor scrutiny of operations. As a consequence, the nonprofit audit serves an important role in transparency.<\/p>\n\n\n\n

Regular audits not only provide insight into the financial health of your organization, they also serve to reassure donors and other stakeholders. In fact, audits provide confirmation of your organization\u2019s accountability and compliance. While not all nonprofits are legally required to conduct an audit, there are many reasons why they should be a priority\u2014especially for larger nonprofits with more than $250,000 in funding.<\/p>\n\n\n\n

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Accelerating Your Nonprofit Audit with Audit-Ready Financials<\/h2>\n\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\tDownload<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\"\"\t\t\t<\/div>\n<\/div>\n\n\n\n

What\u2019s involved in a nonprofit audit?<\/strong><\/h2>\n\n\n\n

A nonprofit audit consists of a review of GAAP-compliant financial statements and a separate compliance audit to assess risk and controls. For any nonprofit, the key to audit readiness is having well-documented transactions and balances. Find out how you can better organize transactions and establish a clear and complete audit trail from transaction to report and reconciliation. See how cloud nonprofit accounting software<\/a> embolden auditors to quickly and effectively test your nonprofit\u2019s accounting processes.<\/p>\n\n\n\n

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Get organized to achieve an expedient, cost-effective nonprofit audit<\/strong><\/h2>\n\n\n\n

The goal of an audit is to focus on the riskiest area of a nonprofit\u2019s financial statements. Unfortunately, if the organization\u2019s statements aren\u2019t well documented or audit-ready, auditors spend too much time in the weeds trying to sort through records or unravel day-to-day accounting processes. That\u2019s why many nonprofits are using a modern nonprofit financial management system to organize transactions and produce audit-ready financials. Using modern cloud accounting software, you and your auditor will save time verifying financial processes and statements. During the risk assessment process, an auditor will test your accounting and reporting processes by:<\/p>\n\n\n\n