Most of the nonprofits I have worked with over the last three, or four years failed their audit. Almost every single one was missing the same few things. If you want to pass your next audit, here is exactly what auditors look for. Keep Your Paper Trail Auditors want proof. They will ask for things like: Receipts for every purchase Bills and invoices Backup for every journal entry you make Timestamps showing when work was done or approved Board meeting minutes If you cannot sh

Board members are leaving nonprofits right now over bad audits. Funders are walking away. Grants are being denied. All because of one thing. Restricted funds. And the scary part? Most nonprofit leaders do not even know their restricted fund tracking is broken until the auditor tells them. By then it is too late. 48% of nonprofit fraud cases are linked to weak internal controls. And mismanaged restricted funds are the number one audit finding auditors see year after year. (Sou

Real estate investors, this one’s for you! Tax time shouldn’t feel like a horror movie. But let’s be real...If your books are messy, you're scrambling for receipts, or your CPA is texting you last-minute questions, it’s a problem. Here’s how to prep like a boss and keep tax season chill 😎 1. Keep Your Books Updated All Year 📅 Don’t wait until December to get your books together. Tracking income and expenses monthly makes life so much easier. You’ll always know your numbers,

In the complex world of taxes, business owners often miss out on several key deductions that can significantly reduce their taxable income. One common oversight is the deduction for home office expenses, applicable when a specific area of the home is dedicated exclusively to business activities. Similarly, many entrepreneurs fail to fully deduct expenses related to business use of their vehicle, which can be claimed based on mileage or actual expenses incurred. Another frequ

Keeping your finances in check is crucial, and one of the best ways to do this is by reconciling your accounts every month. Why, you ask? Let’s break it down! 📊 1. Catch Errors Quickly: Mistakes happen—whether it’s a bank error, a double-charged bill, or just a forgotten transaction. Monthly reconciliation helps you catch these mistakes early, making them easier to resolve. 🛠️ 2. Track Your Spending: Ever wonder where all your money goes? 🤔 Regular account checks give you

Internal controls are the policies and procedures implemented by a company to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud. These controls are vital for maintaining accurate financial reporting, ensuring compliance with laws and regulations, and enhancing operational efficiency. The importance of internal controls cannot be overstated. They help safeguard assets, ensure the reliability of financial statements, and pro