• Menu
  • Skip to right header navigation
  • Skip to main content
  • Skip to primary sidebar

logo

  • Legal Matters
  • Financial 101
    • Accounting & Tax Services
    • Nonprofit Audits
    • 401k Audit
    • Small Business
  • Coaching for Pastors
  • Legal Matters
  • Financial 101
    • Accounting & Tax Services
    • Nonprofit Audits
    • 401k Audit
    • Small Business
  • Coaching for Pastors
Home » 5 Ways to Prepare Your California Nonprofit for an Audit
5 Ways to Prepare Your California Nonprofit for an Audit - broker dealer audit - Ernst Wintter & Associates

5 Ways to Prepare Your California Nonprofit for an Audit

September 22, 2021 //  by WSI Reports

Most nonprofits don’t look forward to annual audits, but regular maintenance and preparation specific can make the process less disruptive to your operations. Just as preparation is vital for a broker dealer audit or any business or organization, tax & audit experts recommend the following steps.

1. Reconcile routinely 

Don’t wait until audit time for account reconciliation (e.g. cash, receivables, payables and revenues). General ledger account balances should be reconciled to support schedules (bank reconciliation, receivables and payable aging) at least quarterly. Database information provided and maintained by nonaccounting departments should also be reconciled frequently, such as contributions, events revenue and sponsorships.

2. Prepare supporting documentation

Collect all supporting documentation before your California nonprofit audit and immediately alert auditors of missing items. You might need to request duplicate invoices from vendors or ask donors for copies of letters describing contributions.

3. Assemble PBC list items

Auditors typically compile a Provided by Client (PBC) list of materials they expect clients to produce including a timeline. Missing the timeline could push back the audit and miss your deadline for completion. To ensure accuracy, perform an additional self-review before sending any information.

4. Explain variances

Your auditors will inquire into significant variances between the current and prior years’ revenues and expenses. Be ready to clearly explain them.

5. Review past audits

Prior audits provide useful guidance. Check them and confirm you didn’t make the same errors this year, and that you posted all of the last audit entries. Otherwise, your financial statements could be distorted.

California nonprofit audits are a long-term relationship

Don’t think of your California nonprofit audits as a once-a-year obligation. Keep in touch with auditors throughout the year. Don’t hesitate to ask your auditors for help recording funds you’re not sure how to document.

Category: broker dealer auditsTag: broker-dealer audit

Previous Post: «Trade Shows- Why Your Booth Should Have Business Brochures - custom mail services - Complete Mailing & Printing Trade Shows: Why Your Booth Should Have Business Brochures
Next Post: Indemnity Clauses: What to Know Before Beginning a Project Indemnity Clauses- What to Know Before Beginning a Project - construction attorney - Alves Radcliffe»

Primary Sidebar

Recent Posts

  • Understanding Force Majeure Clauses With Construction Lawyer Guidance
  • The Hidden Dangers Of Poorly Written Construction Contracts
  • Construction Attorney Insights for Handling Liability Challenges
  • How Skylights Enhance Energy Efficiency in Homes
  • The Awesome Power of Planning Ahead with a General Contractor

Categories

  • 401k Audit
  • Accounting & Tax Services
  • broker dealer audit services
  • broker dealer audits
  • Business
  • Cannabis Appeals
  • Coaching for Pastors
  • Construction
  • Construction attorney
  • Custom mail services
  • Digital Printing
  • Financial 101
  • Financial advisor
  • General Contractor
  • Investment
  • Legal Matters
  • Nonprofit Audits
  • Operations
  • Property Management
  • Real Estate
  • Small Business
  • training for church leaders
  • VELUX Skylight Contractors

Copyright © 2025 · Business Advice Now