Dear Darrell,

1. Can't really comment, our dimensions merit the use of more complex accounting software.

2. Make a distinction between internal controls and internal and external audit. Internal controls (including risk management) should be hard-wired into ALL your activities and not just financial. Internal Audit is the review of those controls: good idea but depends on your budget! If you can afford it, this review process should ideally be throughout the year and program-based. Our organisation employs 2 Internal Auditors and I am one of them! External Audit (in UK) law is required annually ( subject to certain exemptions mostly on the basis of small scale) - can't comment on the US situation. Some museums in the UK, who feel they cannot justify a full-time Internal Audit presence, contract in Internal Audit services (sometimes provided by external auditors) for specific reviews as and when needed. 

3. I came into the heritage sector from the commercial sector where accrual accounting is standard practice and was amazed to find how prevalent cash accounting was - I would definitely recommend accrual accounting but agree with one of your other respondents that this does require a basic understanding of the difference between cash flow and profit : not all find this easy.

Hope that helps - let me know if you would to discuss further.

Best Wishes,

Jerry Symonds, Qualified Accountant (like you CPA), practicing Internal Auditor and holder of MA in Museum Studies.  
  ----- Original Message ----- 
  From: Darrell Beauchamp 
  To: [log in to unmask] 
  Sent: Wednesday, October 31, 2007 11:33 PM
  Subject: [MUSEUM-L] accounting software thoughts


  Three quick "your opinion/thoughts"  question for non profit museum people: 


  Quickbooks (regular version) or Quickbooks for Non Profits?
  How often, if ever, do you seek an audit?
  Cash accounting or GAAP Basis accounting?


  I've been out to the various helpful websites AAM, etc.  Know the pros and cons.  Just want a feel for who does what so I can relay to a board member.


  Thanks


  Darrell

  -----------------------------------------------------
  Darrell Beauchamp, Ed.D.
  Executive Director


  Briscoe Museum
  P.O. Box 90009
  San Antonio, TX 78209
  [log in to unmask]
  210.832.3206 office
  210.260.6869 cell
  210.832.3219 fax
  www.briscoemuseum.org






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If you decide to leave Museum-L, please send a one line e-mail message to [log in to unmask] . The body of the message should read "Signoff Museum-L" (without the quotes).