Reducing Audit Stress For Nonprofits

A fresh perspective on how nonprofit organizations can embrace a proactive approach to audit preparation, in this Nonprofit Power Week session with Justine Townsend, a seasoned manager at Your Part-Time Controller (YPTC). With her unique blend of expertise and passion for nonprofit finance, Justine gives us not just technical advice, but a mindset shift, inviting NPO’s to rethink how they approach audits as an opportunity for growth and reflection, rather than a source of anxiety.

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Audits, she explains, are often met with dread, but they don’t have to be. “It’s always a freak out time. It doesn’t have to be," Justine begins. At the heart of her strategy is the importance of consistent financial hygiene—maintaining regular, thorough month-end closings throughout the year. In doing so, nonprofits can stay "audit-ready," removing the stress of last-minute scrambles and turning the audit process into what she describes as "just a part of the cycle."

One of Justine’s big messages is reframing the auditor's role, reminding us that auditors aren't there to solve operational problems but to issue a professional opinion on the financial statements. “Their whole job is just to issue an opinion...all you’re paying for is that opinion,” she says. By focusing on material accuracy rather than micromanaging financial details, nonprofits can streamline their approach to audits and empower their boards with better understanding.

Justine’s creative solution to reducing audit stress is rooted in building a year-round culture of preparedness, where monthly financial practices mirror the heightened rigor needed at audit time. This idea not only prevents last-minute panic but also strengthens decision-making processes. "Month-end close is 90% of your audit prep," she says, painting a clearer picture of how a small but consistent monthly effort can make a monumental difference when the auditors arrive.

Justine's message is one of empowerment and strategy. Through steady financial discipline, nonprofits can transform the audit from a feared obligation into a celebration of their financial integrity, a chance to "shout from the rooftops" their transparency and accountability to funders, stakeholders, and the public.

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