How A Financial Review From Cook & Company Helps
You Run A Stronger Nonprofit

While a full Independent Audit is always the best option for the health and security of an organization, it’s often not financially feasible for smaller nonprofits. In those circumstances,a financial review is the next best choice.

A financial review is less detailed than an audit, but works in much the same way. If your funding sources and legal requirements allow for a financial review instead of an audit, a CPA will analyze your financial statements and supporting documents, and speak with personnel to get an overview of your nonprofit’s accounting methods and financial reporting practices.

In addition to providing assurance on your financials, one of the best things about a financial review is it gives your nonprofit the opportunity to look at the financial “big picture” and make adjustments that will benefit your organization now and in the future.

Here’s how a financial review can help your nonprofit:

• Protect your financial health. An annual financial review is like a yearly checkup with your
  doctor. You can better understand your financial position and activities, and address potential
  problems before they become major issues.
• Protect your reputation. Nonprofits who are willing to undergo a review or audit are
  showing they value accountability and transparency in their financial affairs.
• Appeal to new funding opportunities. Foundations, corporate sponsors, and government
  agencies often require an audit or review report before funding a nonprofit. Not having one
  could mean missed opportunities to further your mission.
• Become more effective. An annual financial review is a wonderful opportunity to make
  “course corrections” and develop better ways of tracking finances. The review process also
  gives you the chance to pick our brain with those accounting questions you’ve been dying to
  ask someone.