Why Fall is the Smartest Time to Prep for Audit
For many nonprofit organizations, the word audit brings a wave of stress. Staff brace for long nights gathering files, finance teams rush to reconcile accounts, and leaders worry whether funders will see red flags.
The truth? Most of this stress isn’t caused by the audit itself, it comes from poor timing. Far too many nonprofits wait until January to start audit prep. By then, year-end activities, fundraising campaigns, and reporting deadlines pile up, leaving little room to prepare.
The good news: you don’t have to do it this way. Fall is the smartest time to prepare for your audit. By getting started in October or November, you’ll spread out the workload, identify issues early, and approach the new year with confidence.
Why nonprofits often struggle with audit prep
The benefits of starting in the fall
A practical checklist to guide your team
A free Audit Prep Toolkit PDF you can download and use right away
Why Nonprofits Struggle with Audit Prep
If your nonprofit has ever felt “behind” during audit season, you’re not alone. Here are the most common challenges:
Year-end overload: December and January already bring heavy responsibilities—closing books, filing tax forms, and preparing donor reports. Adding audit prep to the mix often leads to rushed work.
Disorganized documentation: Receipts, invoices, contracts, and grant records pile up all year. Without a system to review them earlier, the process of locating and matching documents can become overwhelming.
Higher audit fees: When auditors encounter missing or inconsistent information, it extends the audit timeline. This often translates into additional billable hours and higher fees.
Strain on staff: Employees working overtime to meet deadlines risk burnout and mistakes.
Audit red flags: Incomplete reconciliations or delayed responses can raise compliance concerns during funder or grantor reviews.
Why Fall Is the Smartest Time to Prepare
1. Get Ahead Before the Rush
Fall months give you a window of opportunity. With major fundraising events behind you and year-end still ahead, your team has the capacity to focus on financial readiness.
2. Spread Out the Workload
Audit prep isn’t a one-day task—it’s a series of steps. Reconciling accounts, confirming grant restrictions, and preparing schedules can be spread across October, November, and December. This reduces last-minute panic.
3. Save Time and Money
Auditors appreciate organized clients. If your records are clean and ready, they’ll spend less time on fieldwork. That translates into smoother audits and potentially lower costs.
4. Strengthen Internal Controls
Reviewing records early often highlights weaknesses—like missing approvals, unreconciled accounts, or unclear grant restrictions. Fixing these before year-end strengthens your compliance posture.
5. Build Confidence with Stakeholders
When your board and funders see that your nonprofit is prepared, it builds trust. Audit readiness reflects strong governance and financial stewardship—qualities that grantmakers and donors value.
What to Do This Fall: Audit Prep Checklist
Here’s a breakdown of key steps your nonprofit can take this fall. (A complete version is included in our Audit Prep Toolkit.)
- Reconcile accounts monthly – Ensure bank, credit card, and grant accounts are up-to-date and accurate.
- Review donor and grant documentation – Double-check restricted vs. unrestricted fund tracking.
- Organize supporting records – Invoices, receipts, payroll reports, and contracts should be easy to access.
- Update schedules – Maintain fixed asset, depreciation, receivables, and payables schedules.
- Review internal controls – Confirm approvals and segregation of duties are being followed.
- Communicate with your auditor – Ask about their timeline and requirements so you can prepare exactly what they need.
- Engage your board or finance committee – Share progress and get input before the audit begins.
Free Resource: Audit Prep Toolkit (Downloadable PDF)
To make things easier, we’ve created a free Audit Prep Toolkit designed for nonprofits like yours.
Pro Tip: Think Beyond the Audit
Preparing for the fall isn’t just about compliance—it’s about building stronger financial systems year-round. By reviewing your processes ahead of time, you’ll uncover opportunities to improve efficiency, tighten internal controls, and strengthen transparency for your donors and funders.
Conclusion
Your nonprofit audit doesn’t have to be stressful. By using the fall months to prepare, you’ll avoid January’s chaos, reduce costs, and step into audit season with confidence.
Don’t wait until January—start now. Download the Audit Prep Toolkit and set your organization up for a smoother, faster, and more successful audit season.
Ready to Simplify Your Next Audit?
Audit season doesn’t have to bring late nights, stressed staff, and last-minute scrambling. With the right preparation, you can turn a daunting process into a smooth, well-managed experience.
The Audit Prep Toolkit is your first step—it provides the checklists, timelines, and tips you need to spread out tasks, stay organized, and enter audit season confident and ready.
But tools alone aren’t always enough. That’s where our team at HWA Alliance of CPA Firms, Inc. comes in. With decades of experience supporting nonprofits that rely on federal, state, and local funding, we understand the challenges you face—and we know how to help you overcome them.
By working with us, your nonprofit can:
- Audit your current grant management system for gaps and risks
- Strengthen compliance and internal controls before issues arise
- Prepare for funding disruptions with resilient financial systems
- Keep your board and funders confident in your stewardship
Don’t wait until January. Let’s prepare today so you can focus on what matters most: advancing your mission.