External Annual Audit Prep
While Numbers 4 Nonprofits does not perform formal audits, we are available to work alongside and help our clients prepare for their audit. As an outsourced partner, we are invested in the audit process and coordinate with auditors to support our clients through their audit.
What is an External Audit?
Your financial statements are the story of your nonprofit’s past. They are used to help predict your future budget and to see how you managed the budget from the year prior. Preparing the documents for an audit requires a keen eye and expertise.
While you may have some great accounting software that helps organize your information, interpreting those statements and reviewing for accuracy prior to an audit is an essential task Numbers 4 Nonprofits can perform for you.
An Audit Adds Value to your Nonprofit
The IRS does not require nonprofits to file annual audits. However, the State of Wisconsin requires an audit if the organization makes more than $500,000 in a calendar year and a review of financial statements by a certified public accountant if the organization makes between $200,000 and $499,999. You may choose to have an audit conducted on your organization even if you are not required to do so.
An external audit by a CPA can help your organization grow in the future and provides transparency to potential donors as well as large corporations or foundations that offer grants. An audit will provide a closer study of your organization’s procedures and policies in managing funds.
Should you decide to have an external audit and want to ensure your financial statements are properly prepared, Numbers 4 Nonprofits has an extensive history of helping our nonprofit clients through the audit process.