An independent audit is an analysis of nonprofit organizations financial records, accounts, business transactions and accounting practices. The purpose of an independent audit is to ensure nonprofits are adhering to "generally accepted accounting principles" or GAAP.
How do I know if my Georgia nonprofit needs to be audited?
According to Georgia law, a charitable organization with contributions more than $1 million in either of the previous two years is required to conduct an audit performed by an independent CPA. If annual contributions in either of the past two years are between $500,000 and $1 million, the nonprofit's financial statement must be reviewed by an independent CPA. BatesCarter performs audits and reviews of various types of nonprofit organizations.
However, if your organization does not meet these qualifications, it is still good practice to conduct an audit. An audited nonprofit is a financially transparent nonprofit which will only benefit the nonprofit.
Why conduct an audit if it is not required?
An audit provides a clear source of trust between a not-for-profit and its associates. Oftentimes the Board of Directors is interested in the financial transparency that audits provide. The public expects access to audit reports from many nonprofits, especially from charitable organizations.
Investors and donors want to be sure that a not-for-profit uses their funds in a responsible manner. An audited nonprofit is much more likely to attract these investors and donors, as transparency provides trust and credibility. Funding from the government and many other foundations will often require an audit report as well.
A trustworthy audit can greatly enhance a nonprofit's reputation. Other individuals and organizations see a financially transparent nonprofit as professional, accountable, credible and honest. Relationships and reputation are key in an ever-connected business world.
Why choose Bates Carter?
We understand that nonprofits often operate differently than for-profit organizations, and thus, the auditing process is unique. Bates Carter’s team of highly qualified CPAs is specifically experienced in nonprofit audits. We deliver industry veterans that are dedicated to helping you take your not-for-profit to the next level of credibility and transparency. Our experts will guide you through the process from preparation to completion, ensuring that things go smoothly. For a hassle-free process delivered by a qualified team of trustworthy CPAs, choose Bates Carter.
Taking the Next Step
If you are interested in a nonprofit audit, please contact us. From there, we will discuss your needs and send you a proposal that details our plan of action.