One issue that we discussed in Part 2 of this series was in relation to the audit.  Undertaking an independent audit at least once a year is critical.  This is not only just good governance but it is important in relation to accountability and transparency.

Depending on the structure of your organisation, how it receives funding and the amount of revenue received determines how your accounts are audited.

A lot of the larger not for profit and charities require an independent audit that needs to meet and comply with accounting and auditing standards.  It can be quite costly and time consuming.

While some smaller organisations such as small local clubs or community based organisations don’t necessarily need to have such a detailed or complex audit undertaken, it is still a good idea to have an audit.  It adds to the perceived level of accountability and transparency as the accounts have been independently reviewed.

As just noted, while some audits can be quite costly and time consuming, if your organisation is a small community based organisation you may not need to use a large accounting firm but you could use a local accountant who may not charge as much and in some cases may do it on a pro bono basis.  Take a look around your area and use the services on your doorstep.