Monthly financial statements are key supports of an organization’s financial stability. They help those in charge of governance make decisions based on their financial position, which means they need to be both accurate and timely. The key to generating financial statements is being able to close the books each month easily and accurately.
If you’ve ever entered a transaction incorrectly, you’ve likely forced an accounting software to correct the mistake using a journal entry. Though this manual override is versatile and powerful, it can also create vulnerabilities in your organization’s financial records.
Getting a request list months before your year-end date may make responding to it a low priority for some. But these lists are actually carefully constructed to eliminate unnecessary documents and include crucial ones that will help speed up the audit. Responding promptly makes the audit easier for everyone involved.
With the stuffy language and seemingly redundant information, non-profit financial statements can seem like an irrelevant formality. However, if you know what you’re reading, you may soon realize just how powerful this financial tool can be to raising funds and increasing donor confidence.
Though there are many misconceptions about changing CPA firms for your financial services, the bottom line is that if you’re choosing a more valuable firm, the process should be smooth and simple.