Hi,
A nonprofit audit, and a clean 990, should be straightforward. It stops being straightforward when reconciliations are incomplete, grant spending can’t be traced, or restricted and unrestricted funds are tangled together.
When that happens, your CPA spends extra hours chasing documents and investigating differences, fees climb, deadlines slip, and if the evidence is not there, the auditor may not be able to issue the opinion your funders expect. It usually surfaces at the worst time – after a board transition, a change in treasurer or bookkeeper, or a few years of loose records, when the people who handled the original transactions are already gone.
A smoother audit and an on-time 990 start with organized records:
- Bank statements andΒ monthly reconciliations
- Restricted and unrestrictedΒ fund activity, tracked separately
- Grant agreements, budgets, and spending reports
- Donor contribution records andΒ acknowledgment letters
- Functional expense allocations (program, admin, fundraising) with the method written down
- Board minutes, payroll, 1099s, prior 990s, audited statements, and yourΒ IRS determination letter
The organizations that sail through build the habit year-round: reconcile every account monthly instead of once before the deadline, log restricted gifts the day they arrive with the donor’s restriction attached, keep board minutes that clearly record financial approvals, and start gathering documentation months before it is due, not weeks. Start early and you give yourself time to find missing documents and fix problems before they hold up your audit, your 990, or your next grant.
We can take all of it off your board’s plate – fund-accounting bookkeeping, 990 preparation, audits and reviews, Single Audits, and grant compliance, handled by one team.
Reply to this email by Friday and we will set up a free 15-minute call with one of our senior nonprofit specialists to review your audit and 990 readiness and map out the next steps.
Sincerely,
—
George Dimov, CPA
Licensed and Insured
(833) 829-1120 toll free
(212) 994-8081 Fax
www.dimovtax.com