Audits don’t have to be stressful. Learn how your nonprofit can stay organized, compliant, and confident before audit season arrives. For many nonprofits, an audit can feel intimidating — but it doesn’t have to be. With a bit of preparation and the right systems in place, your organization can move through the process smoothly and demonstrate strong financial stewardship.

Keep Documentation Organized

Maintain complete records for all transactions — invoices, receipts, bank statements, grant documents, and board meeting minutes. Using consistent digital filing systems makes retrieval quick and easy for both your staff and the auditor.

Reconcile Regularly

Monthly reconciliations between your accounting software and bank statements prevent year-end surprises. They also demonstrate to auditors that your organization maintains sound internal controls.

Review Key Accounts in Advance

Before the audit begins, check all balance sheet accounts for accuracy. Pay particular attention to accounts payable, receivable, and restricted funds — areas where errors are most common.

Communicate with Your Auditor Early

Ask your auditor for a list of what they’ll need before the fieldwork starts. This helps your team prepare in advance and keeps the audit timeline on track.

Partner with Experts

Working with an experienced nonprofit accounting firm like NPDM ensures your books are audit-ready all year long. We help you maintain compliance, strengthen internal processes, and eliminate last-minute stress.