Seven ways to reduce your annual audit costs

The Sept. 14 edition of the Blue Avocado newsletter included an article by CPA Dennis Walsh about ways nonprofits can reduce the cost of their annual financial audits. With the new IRS Form 990, which takes more time to prepare, many nonprofit auditors are increasing their fees at a time most organizations are facing budget cuts.

In the article (click here to see the complete piece), Walsh expands on these seven suggestions:

1. Consider not having an audit.

2. Instead of an audit, consider using a different type of CPA report.

3. Talk to your auditor about modifications, such as having the audit performed on the cash basis of accounting.

4. Negotiate with your auditor.

5. Correct any weaknesses in your systems of internal control.

6. Consider changing auditors.

7. Adopt a longer range strategy.