Gilbert, Mark.Nonprofit World; Madison Vol.37, Iss.1, (Jan-Mar 2019):26-27.

1、They don't have a digital archive system.

Most nonprofits are decades behind technology when it comes to this type of archiving. They're still in the paper era, creating huge obstacles, time delays, and frustrations for the finance person who needs to find that desperately-needed lost document.

Don't put your organization in that position: Evaluate your budget for an archival system that can better organize the documents you'll need for the audit.

2、They don't track documents that require signatures.

People's accountability will come from their signatures or initials on the required documents. Most nonprofits overlook this workflow process. As a result, these documents are hard to find when the auditors ask for them.

Tech solutions are a great tool for this approval process. Many cloud-based interfaces have built-in oversight approval. Bill.com, Expensify and Concur are just a few cloud-based systems that can keep track of these signatures and initialed documents for that future audit.

3、They don't track restricted grants, gifts, and donations.

You probably receive restricted grants, gifts, and donations that come with a contingency. If so, you'll need to prove that you followed the restricted guidelines in using these gifts.

You'll want to create a system that proves you've spent the money as required.

4、They don't discuss cash flow issues.

Most nonprofit leaders don't address cash flow problems with their financial advisor, bookkeeper, or accountant until the problem has escalated. 

You can stay on top of this problem by scheduling monthly calls with your advisor, bookkeeper, or accountant. If the call is on the calendar, everyone will know whether financial expectations are being met or falling short. Focusing your attention on workflow now will assure that you pass any future audit.