How to Prepare for a Nonprofit Audit with Clean Books
Audits aren’t just for big corporations. Many nonprofits go through internal, external, or grant-required audits-and being unprepared can cause panic. Here’s how to get your books audit-ready without last-minute stress.
Download Our Free Brochure →Why Nonprofits Get Audited
- Annual revenue exceeds state or federal thresholds
- Grantors require audit reports for funding renewal
- Internal reviews for board transparency or donor accountability
How to Prepare Financially
1. Reconcile All Bank and Credit Accounts
Ensure all months are closed, and balances match statements.
2. Track Funds Separately
Use fund accounting to isolate restricted vs unrestricted activity.
3. Categorize All Income and Expenses
Avoid vague or uncategorized entries. Assign proper program or admin labels.
4. Maintain Clear Documentation
Receipts, invoices, donation records, and grant paperwork should be digitally stored and easy to access.
Download Our Free Brochure →5. Provide Consistent Reporting
Monthly P&L, balance sheet, fund balances, and budget vs actuals all matter in an audit.
Test Case
A nonprofit arts foundation faced its first grant-required audit and was behind on reconciliations. We:
- Cleaned 18 months of books
- Organized income by fund and program
- Delivered a complete audit-ready packet reviewed with their board
Worried about an upcoming audit? Our nonprofit bookkeeping team will get your books clean and audit-ready.
Nonprofit Bookkeeping Services Across States
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FAQs
Do you provide audit-ready reporting packages?
Yes. We compile reconciled reports, fund summaries, and documentation for your auditor.
Can you work with our grant manager or finance team?
Absolutely. We coordinate directly with your internal or external partners.
Do you help prepare for 990s as well?
Yes. We organize all financial data your CPA needs for Form 990 filings.
Audits should confirm your transparency-not expose disorganization. Let RemoteBooksOnline help you prepare confidently.
