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Getting Ready for an Audit: Everything You Need to Know

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Does the prospect of going through a financial statement audit scare the heck out of you? Wouldn't it be nice to know exactly what auditors will be asking and expecting from you — BEFORE they arrive — and be ready with everything they need? Wouldn't it be cool if you could easily give them everything right from within your QuickBooks file?

We are very excited to have Gregg Bossen, a CPA specializing in auditing nonprofits and president of QuickBooks Made Easy for Nonprofits, present this one-of-a-kind and highly requested webinar! Gregg's firm audits over 30 nonprofits a year!

In this must-see session, we will cover:
- A complete list of what your auditor will need — beyond the list they initially give you
- How to generate audit items quickly and easily right from QuickBooks
- How to attach copies of grant agreements and bills from vendors right into QuickBooks
- Understanding what an auditor typically asks and what answers we are looking for
- Best practices for internal controls
- Any questions you've always wanted to ask your auditor but were afraid to for fear of creating a problem

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Getting Ready for an Audit: Everything You Need to Know

  1. 1. Getting Ready for an Audit: Everything You Need to Know December 3, 2019
  2. 2. Using ReadyTalk Chat to ask questions All lines are muted If you lose your Internet connection, reconnect using the link emailed to you. You can find upcoming and past webinars on the TechSoup website: www.techsoup.org/community/events-webinars You will receive an email with this presentation, recording, and links Tweet us @TechSoup and use hashtag #tswebinars
  3. 3. A Global Network Bridging Tech Solutions and Services for Good Where are you on the map?
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  5. 5. Explore our Nonprofit Tech Marketplace For more information, please visit www.techsoup.org/get-product-donations "We are an all-volunteer organization with limited professional skills. Adobe's donated technology is helping us present our story to the public and to lenders in the format of a much larger organization. With Adobe, we are able to knock off a few of the "rough edges" so that our story is front and center instead of our technological limitations. Thank you, Adobe!” - Richard de Koster Constitution Island Association, Inc
  6. 6. The Intuit Donation Program For more information, please visit www.techsoup.org/intuit ● QuickBooks Online Advanced, 1-Year Subscription, 25 Users Admin Fee $160 ● QuickBooks Online Plus, 1-Year Subscription, 5 Users Admin Fee $75 ● QuickBooks Premier Editions 2020, 1 User License (Includes Nonprofit Edition) Admin Fee $60 ● QuickBooks Premier Editions 2020, 3 User Licenses (Includes Nonprofit Edition) Admin Fee $150 ● QuickBooks for Mac 2020 Admin Fee $50
  7. 7. Presenters Gregg Bossen QuickBooks ProAdvisor & Owner, QuickBooks Made Easy Baily Maples Program Manager, Strategic Partnerships TechSoup Assisting with chat: Steven Davidson, TechSoup Steven Davidson Marketing Associate TechSoup Gregg Bossen QuickBooks ProAdvisor & Owner, QuickBooks Made Easy Baily Maples Program Manager, Strategic Partnerships TechSoup
  8. 8. Getting Ready for an Audit: Everything You Need to Know Gregg S Bossen, CPA QuickBooks Made Easy for Nonprofits Atlanta, GA www.quickbooksmadeeasy.com
  9. 9. About Our Instructor ● Certified Advanced QuickBooks ProAdvisor® ● Specializes in Industry-Specific Training ● Author of QuickBooks® Made Easy™ ● National Trainer – seminars around the country QuickBooks Made Easy for Nonprofits Gregg S. Bossen, CPA Get Social Use Hashtag #QBME Twitter: @QBMadeEasy @GreggBossen
  10. 10. What We Do q Streamable Training Products q Nonprofit QB Tech Support q Live Seminars/Webinars across the country Train & Support Nonprofits using QuickBooks QuickBooks Made Easy for Nonprofits
  11. 11. POLL WHO HAS LEARNED FROM ME BEFORE? a) I have b) This is my first time QuickBooks Made Easy for Nonprofits
  12. 12. Agenda ● WHAT IS AN AUDIT? ● SHOULD YOU HAVE ONE? ● LIST OF THINGS YOU WILL NEED ● GETTING THE BOOKS READY ● INTERNAL CONTROLS ● QUESTIONS QuickBooks Made Easy for Nonprofits
  13. 13. POLL WHAT IS YOUR FISCAL YEAR END? a) 12/31 b) 06/30 c) 09/30 d) Something Else QuickBooks Made Easy for Nonprofits
  14. 14. 3 TYPES OF ENGAGEMENTS QuickBooks Made Easy for Nonprofits 0 0.5 1 1.5 COMPILATION REVIEW AUDIT LEVEL OF ASSURANCE LEVEL OF ASSURANCE As to the “correctness” of the financials
  15. 15. SAMPLE COMP LETTER QuickBooks Made Easy for Nonprofits NO ASSURANCE AT ALL…. WHO KNOWS IF IT’S RIGHT?!
  16. 16. SAMPLE REVIEW LETTER QuickBooks Made Easy for Nonprofits LIMITED ASSURANCE!
  17. 17. SAMPLE AUDIT LETTER QuickBooks Made Easy for Nonprofits REASONABLE ASSURANCE
  18. 18. Get an audit if ■ Someone Requires It: ● A Grantor ● A Bank (Loans) ● Your State https://www.councilofnonprofits.org/nonprofit-audit- guide/state-law-audit-requirements ● A Fed Government GRANTOR ○ Spending more than $750,000 in federal $’s ○ Special type of Audit (Single Audit) QuickBooks Made Easy for Nonprofits
  19. 19. Get an audit if ■ You want to go for Grants!!!! ■ You want to grow!!!! Note: Do one EVERY YEAR!!!! (skipping years won’t save you as much money as you think) QuickBooks Made Easy for Nonprofits
  20. 20. PRICES Assuming your budget is around $500,000 or less REVIEW: $3,500 - $6,000 AUDIT: $5,500 - $9,500 NOTE: Estimate Only!!!!! QuickBooks Made Easy for Nonprofits
  21. 21. Prepared by Client List ■ GENERAL STUFF ● Articles of Incorporation (for a new auditor only) ● BY LAWS AND CHANGES IF ANY ● BOARD MINUTES FROM BEGINNING OF AUDIT YEAR THROUGH CURRENT DAY (E.G. 1/1/2018 TO 12/3/2019) ● P/Y AUDIT OR REVIEW ● P/Y 990 ● BOARD OF DIRECTORS LIST W/ ADDRESSES AND TITLES ● PROGRAM DESCRIPTIONS FOR EACH OF YOUR PROGRAMS QuickBooks Made Easy for Nonprofits
  22. 22. Prepared by Client List ■ REVENUE STUFF ● SIGNED COPIES OF ALL GRANTS/CONTRACTS WITH FUNDERS ● LIST OF DONORS GIVING A TOTAL OF OVER $5,000 ● EXAMPLE CONTRACT FOR TUITION OR MEMBERSHIP ● LIST OF ALL IN-KIND CONTRIBUTIONS RECEIVED WITH BACK UP SHOWING DESCRIPTION AND AMOUNT ● LIST OF ALL AUCTION ITEMS RECEIVED WITH FMV AMOUNTS ● DESCRIPTION OF ALL SPECIAL EVENTS OCCURRING DURING THE YEAR ● LIST OF ALL SPONSORS FOR THESE EVENTS WITH SIGNED AGREEMENTS AND AMOUNTS ● OTHER REVENUE CONTRACTS ● LIST OF ALL OUTSTANDING ACCOUNTS RECEIVABLE AT YEAR END QuickBooks Made Easy for Nonprofits
  23. 23. Prepared by Client List ■ EXPENSE STUFF ● ACCESS TO RECEIPTS FOR EXPENSES PAID ○ DON’T FREAK OUT ABOUT THIS ○ WE WILL PICK A SAMPLE TO VIEW (USUALLY 60) ○ COULD BE A CREDIT CARD CHARGE, CHECK, DEBIT CHARGE ETC… ○ WE ARE OKAY IF YOU HAVE TO FETCH FROM THE VENDOR ● SIGNED COPY OF ALL LEASE AGREEMENTS (SPACE, COPIER ETC…) ● LIST OF ALL OUTSTANDING ACCOUNTS PAYABLE AT YEAR END QuickBooks Made Easy for Nonprofits
  24. 24. Prepared by Client List ■ P/R STUFF ● EMPLOYEE LIST W/JOB TITLE AND PROG/ADMIN/FUNDRAISING % SPLITS ● PAYROLL REPORTS FOR AUDIT YEAR (P/R JOURNAL, 941, W-2’S ETC…) ● COPY OF 1099’S AND 1096 GIVEN DURING THE AUDIT YEAR QuickBooks Made Easy for Nonprofits
  25. 25. Prepared by Client List ■ ASSET STUFF ● COPY OF YEAR END BANK STATEMENTS (AND ACCESS TO THE OTHERS) ● COPY OF YEAR END INVESTMENT STATEMENTS (AND ACCESS TO THE OTHERS) ● LIST OF ALL FIXED ASSETS WITH A DEPRECIATION JOURNAL (MAY BE IN WITH YOUR 990) ● LIST OF ALL PREPAIDS (E.G. PREPAID INS, DEPOSITS ETC…) QuickBooks Made Easy for Nonprofits
  26. 26. Prepared by Client List ■ LIABILITY STUFF ● COPY OF YEAR END CREDIT CARD STATEMENTS (AND ACCESS TO OTHERS ● COPY OF YEAR END LOAN STATEMENTS (AND ACCESS TO THE OTHERS) ● AMORTIZATION SCHEDULE FOR ALL LOANS ● LIST OF ALL REVENUES RECEIVED EARLY IN AN “UNEARNED REVENUE” TYPE ACCOUNT ON THE BALANCE SHEET (LIKE PREPAID MEMBERSHIP DUES, TUITIONS OR TICKET SALES) ● BACK UP FOR ANY OTHER LIABILITIES ON THE BALANCE SHEET QuickBooks Made Easy for Nonprofits
  27. 27. MAKING SURE THE BOOKS ARE READY ● RUN AN ACCRUAL BALANCE SHEET AS OF YEAR END ● MAKE SURE EQUITY ROLLS FORWARD ● MAKE SURE EACH NUMBER IS CORRECT ○ RECONCILING IT IN QUICKBOOKS ○ OR COMPARING IT TO BACK UP ● RUN AN ACCRUAL P & L FOR THE YEAR ○ MAKE SURE SALARIES TIES TO FED P/R FORMS ○ MAKE SURE ALL EXPENSES ARE ASSIGNED TO A CLASS ● RESTRICTED GRANTS: MAKE SURE U HAVE BACK UP FOR HOW DOLLARS WERE SPENT QuickBooks Made Easy
  28. 28. INTERNAL CONTROLS DO YOU HAVE TO HAVE THEM TO PASS AN AUDIT? NOPE SHOULD YOU HAVE THEM? OF COURSE! QuickBooks Made Easy for Nonprofits
  29. 29. INTERNAL CONTROLS THINGS TO KEEP IN MIND ● MAKE SURE THAT MORE THAN PERSON IS INVOLVED IN THE ACCOUNTING FUNCTION ● HAVE SOME APPROVAL PROCESS FOR PAYING BILLS ● KEEP BACK UP FOR EXPENSES QuickBooks Made Easy for Nonprofits
  30. 30. Special Offer! 3 DAY FUNDAMENTALS WEBINAR SERIES § Webinar: QuickBooks Made Easy for Nonprofits 3-Day Webinar Series for Online Users $249.00 $199.00 $50 off with coupon code Code: WEB50OFF December 4-6 (Wed-Friday: 2 hours per day) 2:00-4:00pm ET QuickBooks Made Easy for Nonprofits
  31. 31. QuickBooks Made Easy for Nonprofits The Fundamentals 3-Day Webinar Series Topics 2 hours daily Day 1: • Welcome to QuickBooks – The different choices and which version is right for you • What’s new in version 2020 that you may need • Getting used to the screens and navigating around • A lesson in accounting QuickBooks style • Setting up the correct • Entering Your Programs • Adding Your Annual Budget • Cutting and Pasting from Excel into QuickBooks • Entering Your Donors, Members or Students Day 2: • Entering Your Income – Two Methods • Entering Donations and Grants • Entering Membership Dues and Tuition • Entering Program Service Revenue • How to get the most out of Items • Entering and Paying Bills • Spreading Costs to Programs/Grants • Essential Reports for the Board/Auditor • Attaching Scan Documents for free Day 3: • Entering Credit Card activity • Tracking Pledges • Tracking Restricted Grants • Tracking Special Fundraising Events • Printing personalized Donor Thank-You Letters directly from QuickBooks® • Two Ways to get year- end donor- Acknowledgements • Recording In-Kind Contributions • Advanced method of Auto-Allocating Expenses to Programs/Grants • And More!
  32. 32. § The QuickBooks Essentials or Beyond the Essentials for only $149 Code: 149DEC § QuickBooks Made Easy –The Set for only $298 Code: 298DEC § Tech Support for 1 Year $299 Code: TECHDEC Normally: $499.00 QuickBooks Made Easy for Nonprofits Special Offer! Ends 12/07/2019 at 11:59PM PST Get The Essentials or Beyond the Essentials Training! Normally: $229.95 Each Includes The Essentials & Beyond the Essentials Training! Normally: $399.95
  33. 33. QuickBooks Made Easy for Nonprofits Upcoming Dec. Events
  34. 34. QuickBooks Made Easy for Nonprofits Upcoming Dec. Events
  35. 35. THANK YOU!!!! Presenter: Gregg S. Bossen, CPA Get Social Use Hashtag #QBME Twitter: @QBMadeEasy @GreggBossen QuickBooks Made Easy for Nonprofits
  36. 36. Q&A This is your chance! Use the chat box to ask us any questions you have about this presentation.
  37. 37. Share and Learn Chat in one thing that you learned in today’s webinar. Please complete our post-event survey. Your feedback really helps. Follow TechSoup on social media (FB, Instagram, Twitter, LinkedIn) Visit the TechSoup Blog at blog.techsoup.org
  38. 38. Join us for our upcoming webinars. 12/10 Social Media 101 for Nonprofits with Adobe Spark 12/17 3 Ways Starting a Podcast Can Help Your Nonprofit Grow
  39. 39. FY20WEB10 - 10% off a TechSoup Course of Your Choice
  40. 40. Thank you to our webinar sponsor! Please complete the post-event survey that will pop up once you close this window.

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