{"id":19275,"date":"2023-07-07T09:00:00","date_gmt":"2023-07-07T13:00:00","guid":{"rendered":"https:\/\/www.sage.com\/en-us\/blog\/?p=19275"},"modified":"2026-02-12T04:15:08","modified_gmt":"2026-02-12T09:15:08","slug":"the-benefits-of-conducting-a-remote-nonprofit-audit","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-us\/blog\/the-benefits-of-conducting-a-remote-nonprofit-audit\/","title":{"rendered":"The Benefits of Conducting a Remote Nonprofit Audit"},"content":{"rendered":"
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\n\t\t\t\t\t\tThe Benefits of Conducting a Remote Nonprofit Audit\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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\n\t\t\t\n\t\t\t\t\"\"\t\t\t\tNatalie Anderson<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n

Today\u2019s nonprofit organizations operate in an environment of constant scrutiny. A 24-hour news cycle and social media quickly amplify any headlines about financial neglect or malfeasance at nonprofit organizations and may cause reputational damage. It pays to remain vigilant about your stewardship and financial transparency.<\/p>\n\n\n\n

Nonprofit audits are a great way to demonstrate financial transparency and can benefit your organization in four ways:<\/p>\n\n\n\n

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  1. Maintain your organization’s glowing reputation to attract new donors.<\/li>\n\n\n\n
  2. Build trust with donors and secure continued and additional funding.<\/li>\n\n\n\n
  3. Demonstrate accountability and compliance.<\/li>\n\n\n\n
  4. Increase transparency into financial management, performance, and impact.<\/li>\n<\/ol>\n\n\n\n

    Complimentary e-book: Accelerating Your Nonprofit Audit with Audit-Ready Financials<\/a><\/p>\n\n\n\n

    A few practical challenges restrain many nonprofits, especially smaller ones, from obtaining a nonprofit audit. Audits tend to be expensive. And audits can require a lot of effort from the accounting team to prepare audit-ready financials. Fortunately, having a remote audit can reduce the cost of an audit and having modern nonprofit accounting software can reduce the complexity of preparation.<\/p>\n\n\n\n

    In this article, we will examine seven benefits of a remote audit for nonprofit organizations and then discuss the functionality your financial management system will need to support remote audits.<\/p>\n\n\n\n

    Do all nonprofit organizations need audits?<\/strong><\/h2>\n\n\n\n

    Many nonprofits benefit from obtaining an audit opinion\u2014and some are required to have regular audits. To determine whether your organization is legally required to have a nonprofit audit, consult these resources by the National Council of Nonprofits:<\/p>\n\n\n\n

    Federal Audit Requirements<\/strong><\/a><\/strong><\/p>\n\n\n\n

    State Audit Requirements<\/strong><\/a><\/p>\n\n\n\n

    Many grant-funded nonprofits need an audit to satisfy grant requirements or comply with federal funding regulations. Additionally, many high-net-worth donors and family funds require routine audits. For these reasons and more, most larger nonprofits ($250,000+ in funding) and many other organizations will want to obtain an audit.<\/p>\n\n\n\n

    How is a remote audit different from a traditional audit?<\/strong><\/h2>\n\n\n\n

    A traditional audit is usually an on-site process where an auditor (or a team of auditors for larger organizations) examines your financial documents, accounting processes, and internal controls to ensure there are no irregularities or mismanagement. The process is usually long and requires significant preparation by your organization. The auditor\u2019s travel expenses are built into the audit price, driving up costs. The cost of an audit may be prohibitively expensive for smaller nonprofits.<\/p>\n\n\n\n

    In contrast, auditors conduct remote audits from their own offices, working with you through a secure online exchange of information and via secure access to your cloud accounting system. In this scenario, permission-based access is granted so the auditor only has access to the information you determine necessary to conduct the audit. This arrangement speeds the audit process and eliminates the need for travel which reduces expenses. The audit\u2019s scheduling can remain more flexible.<\/p>\n\n\n\n

    \u201cSage Intacct is very helpful in meeting the compliance requirements of public funding grants. Our donors want to see that we receive a clean audit opinion. The internal controls in Sage Intacct are critical.\u201d<\/strong><\/strong><\/p>\n\n\n\n

    ~ Faith Noble, CFO, Towards Employment<\/p>\n\n\n\n

    7 benefits of remote audits<\/strong><\/h2>\n\n\n\n

    Time and money savings are the two primary benefits of a remote audit, as opposed to a traditional on-site audit. But there are even more reasons to consider a remote audit. Here are seven benefits associated with conducting your audit remotely:<\/p>\n\n\n\n

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    1. Cost savings:<\/strong> A remote audit can lead to significant cost savings because the auditor doesn\u2019t need to visit your physical location. Nonprofits with international entities or multiple geographic locations will especially benefit from eliminating auditor travel costs.<\/li>\n\n\n\n
    2. Time savings:<\/strong> Remote audits are a more efficient use of the auditor\u2019s time and your finance team\u2019s resources. No more time spent digging through file cabinets.<\/li>\n\n\n\n
    3. Convenience:<\/strong> With remote access to financial data and the ability to meet virtually using web conferencing solutions, getting your auditor the necessary information to complete the audit can be much easier.<\/li>\n\n\n\n
    4. Flexibility:<\/strong> Your staff in multiple locations can collaborate more efficiently with a remote auditor. Cloud-based remote audits may also provide more flexibility to set up meetings outside of regular work hours.<\/li>\n\n\n\n
    5. Access to auditors:<\/strong> With a remote audit, even organizations in remote or underserved areas can undergo effective audits and choose an auditor specializing in the nonprofit industry.<\/li>\n\n\n\n
    6. Minimized disruption: <\/strong>You won\u2019t need to set up space within your office for the auditor to work. Having the audit conducted remotely will allow your team to continue their work uninterrupted.<\/li>\n\n\n\n
    7. Secure data sharing: <\/strong>With cloud-based accounting solutions, remote nonprofit audits can be conducted securely, with auditors sharing secure access to financial data while your organization maintains control over the data.<\/li>\n<\/ol>\n\n\n\n

      If you are thinking that a remote audit sounds much more convenient than a traditional audit, make sure your organization has the right technology infrastructure to support remote auditing. It will require a modern financial management system capable of producing audit-ready financials and enhancing remote collaboration.<\/p>\n\n\n\n

      Essential accounting functionality to support remote audits<\/strong><\/h2>\n\n\n\n

      If your accounting software is on-premises or lacks features, it can be difficult to sort through accounting records and find the information needed to prepare audit-ready financials. Cloud nonprofit accounting software<\/a> streamlines and automates:<\/p>\n\n\n\n