Ease the Stress of the Nonprofit Audit Process with Sage Intacct

Ease the Stress of the Nonprofit Audit Process with Sage Intacct

If the nonprofit audit process is driving your stress levels through the roof, you’ll be glad to know there’s an easier way.

This annual evaluation can be a dreaded, time-consuming endeavor, particularly when the proper systems and documentation aren’t in place. But it doesn’t have to be that way. Sage Intacct can alleviate the stress and remove the hassles by providing data clarity and all the necessary tools in one accessible location.

Please read on to learn why Sage Intacct is the answer to a smoother, trouble-free nonprofit audit process.

What’s involved in a nonprofit audit?

If you’re unfamiliar with these annual monetary inspections, they involve a review of an organization’s financial records to determine whether they meet Generally Accepted Accounting Principles (GAAP). They’re performed each year because the Financial Accounting Standards Board (FASB) requires auditors to report annually to the nonprofit’s board of directors as to whether the financial statements fairly and accurately represent the organization’s financial condition, position, and operations.

The fieldwork is conducted by the auditing team and is based on three primary considerations:

  • Risk assessment: The most significant exposure to the risk of misappropriation or misuse generally occurs in the organization’s cash flow, i.e., Accounts Payable and Accounts Receivable.
  • Review of internal controls: Risks can be mitigated through robust controls over access to funds and records, as well as adequate checks and balances through the separation of responsibilities.
  • Specific concerns of the board or management: The governing body of the organization may request certain types of transactions be given a higher level of scrutiny.

Auditors assess these elements, along with the general ledger and the organization’s responses to some standard questions. From there, they compile a request for documentation and the internal work begins.

Do these three things to simplify your fiscal life.

The auditors will start by testing transactions on a scope basis. This entails a list of specific transactions for which they want to see all the supporting documentation so they can verify that the processes described are working properly.

This part of the fieldwork can be daunting for you and your staff, but if you implement the following three tactics, you can alleviate much of the stress of the annual audit.

  1. Streamline the process through automation. Paper-based accounts payable and receivable processes are slow and prone to human error. Accounts payable and accounts receivable automation removes the inefficiencies and largely eliminates errors while also providing the checks and balances required for an audit review. An automated system also saves time and facilitates the testing of transactions because all of the supporting documents are readily available within the system. By streamlining the review and approval process, avoiding duplicates, and keeping everything in one accessible location, it creates a smooth and hassle-free review process.
  2. Choose accounting software that’s built for your needs. Nonprofits have unique accounting needs. They handle grants and donations, track volunteer time, create budgets, and have specific tax filings and financial statements that are required by law. They necessitate features that for-profit businesses don’t, and they often demand more scrutiny from the public and the government, too. Using software that’s designed for nonprofit accounting is an essential part of simplifying bookkeeping so that the audit doesn’t create extra headaches. Choose software that’s user-friendly and has the functionality your organization requires. Sage Intacct is among the most commonly-used accounting software products in the nonprofit world, making it an excellent choice.
  3. Facilitate collaboration. Sage Intacct is designed to improve teamwork and communication. It puts everyone on the same page while making information accessible and expediting processes. Forget about rummaging through the file cabinet to find the necessary financial statements. Simply open a chat inside Sage Intacct and add the information right there! Communicate instantly about specific journal entries, accounts, invoices, and more to facilitate collaboration and organization.

The nonprofit audit process doesn’t have to be a punishing, high-stress annual exercise. With a little planning and the right accounting software, you can easily demonstrate your financial stewardship.  

Ready to make your next audit  expedient and successful? Intuitive Business Concepts implements Sage Intacct for foundations and associations who strive to improve their financial discipline.  Contact us to learn more or to start your journey.

About IBC: At IBC, we have a deep understanding of the critical business needs and processes specific to associations, non-profits, and unions. We ‘get’ your culture, your goals, and what drives you, too. Focused exclusively on and dedicated to delivering the most effective AMSLMS, and Cloud Financial Software for our clients, we’re well-versed in identifying and applying the integration techniques that will save you time and money. Since 2001, our cutting-edge products, unparalleled responsiveness, and award-winning services have helped organizations like yours increase their operational and financial performance by leveraging best practices and proven solutions. For more information about IBC, please visit the website at www.ibconcepts.com or call 443.603.0215.

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