What to Do Now So Next Year's Audit Isn't a Crisis

You made it through audit season—barely.

The trial balance got done just in time. You found the missing documentation with minutes to spare. The final report went out… after some late nights and a lot of coffee.

But if you're honest, the whole thing felt like a scramble.

 

Here’s the good news: next year doesn’t have to feel that way.

Audit season doesn’t have to be a crisis. It can be a process. A system. Even (dare we say it) smooth.

But only if you start now—while the lessons are still fresh.

Here’s what to do in the months ahead so next year’s audit feels like a plan, not a panic.

1. Make a List of What Slowed You Down This Year

Don’t rely on memory. Take 15 minutes and write down:

• What was harder than it needed to be?

• What documentation took too long to find?

• What did the auditor ask for that surprised you?

• Where did you have to redo or clean things up mid-audit?

This becomes your personal playbook for next year’s prep.

2. Create a Permanent Audit Folder Structure

If your audit support lives in emails, downloads, and desktop folders labeled “Misc,” it’s time to clean house.

✅ Set up a consistent folder structure like:

• Trial Balance & GL

• Bank Statements & Recs

• Payroll Reports

• Capital Assets

• Debt Schedules

• Federal Programs / SEFA

• Adjusting Entries

• Policies & Minutes

• Final Audit Docs

Copy this structure forward every year.

Store documents monthly—not just in June.

3. Build a Running Audit Notes Document

Throughout the year, decisions are made, entries are posted, and things happen that will absolutely be forgotten by next audit season.

✅ Keep a running doc with:

• Unusual transactions or one-time adjustments

• Grant documentation issues

• Board decisions that affect fund balances

• Journal entries that required extra steps or discussion

• Questions the auditor asked (and how you answered)

One document. Ongoing updates. Massive payoff later.

4. Automate What You Can While It’s Quiet

Now is the time to improve—not during year-end chaos.

✅ Consider:

• Saving bank recs and reports to the audit folder automatically

• Creating monthly SEFA tracking worksheets

• Building templates for capital asset rollforwards or debt schedules

• Scheduling recurring reminders to save documentation each month

You don’t need fancy tools—just consistency.

5. Update Your Audit Checklist (and Actually Use It)

Checklists aren’t just for auditors—they’re how you turn a process into a system.

✅ Include:

• Internal due dates for each audit area

• Responsible person (even if it’s you)

• Status updates

• Links to saved documentation or templates

• Notes from last year on what to improve

Use it to prep in phases—so everything isn’t left to the final month.

6. Schedule a Mid-Year Audit Check-In

Halfway through the fiscal year, block off 30 minutes to check:

• Are reconciliations up to date?

• Have grant expenditures been tracked?

• Are there new debt issuances, leases, or capital assets?

• Has anything changed in staffing or systems?

Early action prevents year-end panic.

7. Share Feedback with Your Auditor (and Ask for Theirs)

Audit success is a partnership. Let your auditor know:

• What was helpful

• What was confusing

• What timeline worked—and what didn’t

And ask them:

• What slowed us down from your side?

• What could we prepare differently next year?

It builds trust—and improves next year for both of you.

A Smooth Audit Starts Now

The difference between a rushed audit and a calm one isn’t the number of hours you work.

It’s the systems you build and the habits you start—before the pressure hits.

✅ Organize your folders
✅ Track decisions as you go
✅ Build templates you can reuse
✅ Ask better questions
✅ Plan ahead—even just a little

Because next year’s audit isn’t months away.
It’s already on the calendar.

And you have the power to make it easier.