Xero Audit-Readiness Scorecard - XP
Before you start
How audit-ready is your Xero setup?
This scorecard covers the four areas we see nonprofit finance teams struggle with most. It's not a test - it's a mirror. The goal is to see clearly where you're strong and where the gaps might be hiding.
- Fund tracking and visibilityWhere is the money actually going?
- Audit readinessCould you face an auditor tomorrow?
- Process efficiencyAre manual workarounds costing you time?
- Board and governance reportingDoes your board get the picture they need?
Pillar 1 of 4
Fund tracking and visibility
Can your organisation clearly show where money went, why, and for what purpose?
Question 1
Can you track expenditure by program, event, or grant in Xero?
Yes, clearly
Partially
No
Question 2
Are your tracking categories and chart of accounts aligned to your current reporting requirements?
Yes, reviewed recently
Set up once, not revisited
Not sure
Question 3
Do you know which NZ reporting tier (Tier 2, 3, or 4) your organisation currently falls under?
Yes, confirmed
Think so
Not sure
Question 4
Can you produce a grant accountability report from Xero showing income and expenses against each grant?
Yes, per grant
Some grants only
No
0 of 4 answered
Pillar 2 of 4
Audit readiness
If an auditor walked in tomorrow, how confident are you that the data is clean, the trail is transparent, and the answers are ready?
Question 1
Do you have digital approval workflows for invoices and expenses (e.g. ApprovalMax)?
Yes, enforced
Partially
No, manual approvals
Question 2
Are your Xero periods locked at the end of each month to prevent backdated changes?
Yes, every month
Sometimes
No
Question 3
Could you produce a clean trial balance right now if an auditor asked?
Yes, confidently
With some effort
Not easily
Question 4
How heavily does your finance process rely on general journal entries?
0 of 4 answered
Pillar 3 of 4
Process efficiency
How much time is your team spending on work that could be faster, simpler, or automated?
Question 1
How long does your month-end close process take?
1-2 days
3-5 days
More than a week
Question 2
Are your bank reconciliations automated in Xero?
Yes, automated
Partially
Mostly manual
Question 3
Do you use standardised, branded templates for invoices and quotes in Xero?
Yes, templated
Some
No, ad hoc
Question 4
Is your payroll processed through Xero or an integrated system?
Fully integrated
Partially
Manual spreadsheets
0 of 4 answered
Pillar 4 of 4
Board and governance reporting
Does your board get the financial picture they need to govern confidently - without having to ask for it?
Question 1
Do you produce board-ready financial reports beyond the default Xero reports?
Yes, customised
Basic Xero defaults only
Ad hoc or none
Question 2
Can your board see budget vs actuals with variance analysis?
Yes, every period
Occasionally
No
Question 3
How often do you provide financial reporting to your board?
Monthly
Quarterly
Annually or ad hoc
Question 4
Are you confident your reporting meets the requirements of your current NZ reporting tier?
Yes, confident
Not sure
No
0 of 4 answered
For Sonja's review
This is the draft scorecard for your feedback before we build the production version. Key questions:
- Are these the right 16 questions? Would you swap any out or add something critical?
- Are the answer options realistic? Would a nonprofit finance person recognise themselves in the choices?
- Is there a question you ask in every client conversation that's missing here?
- Do the "where to focus" recommendations match what you'd actually tell a client?
- Are the scoring bands fair? We don't want people feeling worse than they should.