CPA – Beck & Company

Accounting for Nonprofits: Close the Book on It!

Preparing Your Books for the End of Year Close

‘Tis the season – the season when nonprofits everywhere start thinking about year-end close. This year, vow that you’ll do all you can to smoothly and efficiently close the books with minimal stress to your accountant. Accountants everywhere thank you.

In all seriousness, there are many reasons why doing a good job preparing your books for the end of year close is important. Without closing your books for the year, you’ll have no idea if your nonprofit was profitable or not. Closing the books and reconciling them means that you’ve tallied up everything for the end of the year, put a period or end point on it, and start with a fresh slate in the new year.

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Closing the accounts for the year reset the revenue and expense lines to zero. These ‘temporary’ accounts are now ready for the new year, a clean slate, and a new eye to profitability. Without closing your books, you’ll have a muddle of data to assess, and you won’t get a clear picture on how well your organization achieves its financial goals during the year.

Accounting for Nonprofits: Tips for Success

There are certain steps you can take to successfully close your books for the end of the year. This includes:

Keep your accounts updated: Schedule time monthly to reconcile expenses and income. If you let it all pile up to the end of the year, it will feel overwhelming. There’s also more of a chance to make mistakes and forget items.
Create a checklist: A detailed and thorough checklist that details every step for your year-end close is a helpful resource. Such a process can guide you through the close out each year and save time.
Ask questions during the year: Hopefully, you have a great certified nonprofit accountants to work with, someone who knows your nonprofit and is open to questions. Don’t let questions delay your routine accounting practices. Ask questions throughout the year so that you don’t let mistakes proliferate.
Schedule plenty of time for your audit: Dovetail your end of year close with audit prep, but leave plenty of time for your audit. By doing both at the same time – audit prep and end of year close – you’ll be well-prepared for the new year.

Pay Bills, Lower Receivables

Another useful end of year task to tackle before reconciling and closing your books is to pay off any outstanding invoices so that you carry fewer into the new year. You should also review your accounts receivable file, and attempt to collect any past due invoices. You can certainly carry these over, but it is always a good idea to avoid open receivables. The fewer receivables you have, the more income your nonprofit has at the ready.

While closing out your books may not be top of mind as you celebrate the holidays, tackle the tasks early enough in the month so that you can get them done while people remain in the office. Note when your accounting team may be taking time off to travel or celebrate the holidays, and work around their schedules. You can complete your end of year close with plenty of time to enjoy the festivities of the season.

Beck & Company

Beck & Company provides nonprofit accounting and audit services in Washington, D.C and Virginia. Founded in 1987, we specialize in the world of nonprofit institutions, helping them to navigate the complex world of finance and accounting. Our services are always personalized, and cost-effective for your institution. We welcome your inquiry or call. Contact us today or call 703-834-0776 x 8001.

Tax Planning & Preparation Services

Beck & Company, Certified Public Accountants and Business Advisors is an independent certified public accounting firm serving the Greater Washington D. C. metropolitan area with clients also along the Eastern Seaboard. Our firm has been built upon a tradition of service, technical expertise, and creative thinking. Did you know that here at Beck & Company, Certified Public Accountants and Business Advisors, we provide audit, tax, accounting, nonprofit, and consulting services? Our goal is to help our clients’ financial endeavors flourish while exceeding their expectations. Our background and experience in public accounting and business allow us to offer qualified assistance in practically any area of your business. Over the past few weeks we have taken a deeper look into the services we provide so that you can take full advantage of our expertise, to help your organization meet its business and personal financial objectives. We have delved into the different client accounting, audit services, and nonprofit services offered here at Beck & Company, CPAS. In this article we want to highlight our Tax Planning and Preparation Services.

Whether you are an individual, partnership, corporation, or a not-for-profit organization, our experienced staff can develop tax strategies that take advantage of new tax laws and legislation. By seeking to provide individualized, quality tax services in a way that best suits your goals and vision for the future, Beck & Company can provide you with innovative tax solutions.

Our efficiency and cost-effectiveness are further strengthened by our use of computerized tax tools to support our staff, which can, in turn, yield tangible benefits to you. Beck & Company utilizes the latest in tax research tools.

We provide innovative tax compliance and consulting solutions utilizing automated tax tools to enhance our efficiency and cost-effectiveness for our clients, including:

Tax compliance and return preparation for individuals, corporations, partnerships and not-for-profit organizations
Tax planning and preparation to develop tax strategies that take advantage of new tax laws and legislation
Advising on the tax effects of buying/selling a business
Providing representation before taxing authorities as needed

We will help you realize your goals and achieve success through:

Investing in ongoing learning and education that keeps us current on regulations, standards and emerging issues that will help our clients maintain compliance, improve processes, and achieve their financial goals.
Uncompromising commitment to the highest standards of quality on every engagement and participation in the American Institute of Certified Public Accountants Quality Review Program that requires us to maintain quality control systems over our accounting and auditing practice.
Development of service methodologies that achieve the highest standards while maximizing efficiencies for our clients.
Ongoing communication between our staff and clients throughout each engagement to resolve issues as they are identified so we accomplish your financial goals in the timeline committed.
Creative and innovative approach to developing solutions for our clients based on our understanding of your unique circumstances, needs and objectives.
Team of experienced professionals with senior or owner involvement in all client engagements so you know you have direct access to specialized expertise on which you can rely and trust.

At Beck and Company, CPAS we’re different because we’ve been where you are – either in our professional experience in running our practice and business or we’ve seen situations similar to yours when working with clients much like you. Our broad base of managerial accounting and systems experience and our deep understanding of business process and technology enable us to apply knowledge from the past, together with up-to-date best practice know-how to help you solve your challenges and capitalize on the opportunities you face. Our creative and innovative team of experienced professionals with senior or owner involvement in all client engagements ensures you know you have direct access to specialized expertise on which you can rely and trust.

Ensuring the Retention of a Quality CPA for your Business

Finding and securing the right accountant to meet your business needs is no easy task. Last week, we took a look at guidelines to assist you when choosing the best Certified Public Accountant (CPA) for your company. Visit here to learn more. Once you’ve secured a good accountant, you won’t want to lose them and will want to be sure you know what will help keep them around for the long haul. It is important to do what is necessary to make this happen.

At the same time, you also want to ensure that your hired CPAs are performing their duties well. In a sense, there is a balance of equipping employees with what they need to be successful but also monitoring to make sure they are fulfilling their end of the obligation to do honest and professional work. This balance can happen by knowing what your employees need and responding to those needs while also knowing what to expect out of your CPAs and holding them accountable to these expectations. Beck and Company’s Certified Public Accountants and Business Advisors have vast experience in accounting practices along with a deep understanding of business processes to assist you in knowing accountant needs and expectations. We also offer quality accounting services to meet your business needs.

Tips for Fostering Retention

Some recent surveys within the field have concluded that employers find that employees with the highest potential and those who were the top performers were also the ones with the highest turnover. Employers are losing their best talent, and the employees state that their reasons for leaving are limited opportunities for career advancement and a lack of confidence in company leadership. There is certainly a disconnect between employers and employees that is leading to talent mobility instead of leading to employers seeking to understand and respond to what employees value. If you want to retain your CPA employees, you’ll need to do just that.

As an employer of CPAs, what can you do to improve retention, engagement, and employee career development?

Create a consumer-like experience for employees. Many employees feel they are not understood to the same degree they are expected to understand customers. Be sure to get to know what your employees need, and respond to those needs.
Equip employees with leadership development and career advancement opportunities. Don’t lose employees to companies that are meeting their needs better. Give them the opportunities they need, and be open to discussing opportunities for leadership and advancement within your own organization.

Ensuring Employees are Following Expected Professional and Ethical Practices

As an employer, you may not be an expert in the field of accounting. At the same time, your accountants are an important part of your business and have the power to make or break it in many ways. Not only are employees held to a certain standard of general conduct that must be followed, but accountants are also held to a certain standard of ethical and professional conduct specifically tailored to the work of accountants. As an employer, it is important for you to know about this code of conduct to be sure it is being followed and that your accountant is following practices that will help and not hinder your business. The American Institute of Certified Public Accountants (AICPA) has outlined these expectations through its Code of Professional Conduct. It includes such things as expected responsibilities to clients and colleagues, other responsibilities and public interest, general accounting principles, and a look at independence, integrity, and objectivity.

For more information about the Code of Professional Conduct and general assistance as an employer with helping accounting employees to be successful and to stick around, please contact us here at Beck and Company CPAs. Our vast experience can be an asset to ensuring success for all—both employees and employers.

Finding a Good Fit in an Accountant for your Business

Entrusting your company’s most valuable asset—your finances – to someone else is certainly not something to be taken lightly. High expectations are good! Whether you are a new business just starting out and looking for help with the financial side of things or you’ve finally come to the conclusion that you can’t do it all and need an expert to oversee the finances, you’ll want to make an informed decision about which Certified Public Accountant (CPA) is best suited for your company and what they have to offer. While we cannot choose an accountant for you, Beck and Company’s Certified Public Accountants and Business Advisors can give you additional insight and guidance when it comes to the search for someone who is best for your business. Here are our general recommendations:

Characteristics to Look for in a Potential Accountant

What, exactly, characterizes a good accountant? When looking for an accountant to manage the financial side of your organization, you’ll want to consider some important general CPA traits. These include finding someone with a basic understanding of your specific industry and a desire to always learn more about it. They must have a thorough understanding of the company’s big picture and a commitment to the overall business. You’ll need someone who is attentive to details, communicates well, is adept at using a computer, understands proper job costing, and is a person of follow through. To dive into these traits further, visit here.

In addition to these general characteristics, you’ll want to look for someone who has strong leadership or leadership potential. When someone is making decisions that impact the entire organization and relate to financial assets, they’ll need to be someone who considers the interest of all and is a team player. Finally, determine the specialized needs you have within the position and the reasons you will be hiring someone (tax prep, financial system overhaul, expert to answer questions and give guidance, etc.). This will make securing the right person easier and will make the interview process clear for both you as employers and for the potential employees themselves.

Securing the Right Person

Once you have a good idea of what you are looking for in the person you want to hire for the position, you will need to go through the process of securing just that. If you are unsure where to begin, start by asking around within your network to find out who others use for their accounting service needs. It is recommended that any accountants you consider have at least 60% of their businesses coming from businesses similar to yours in order to know the laws and systems well. As another starting point, Beck and Company CPAs also offer many client accounting services that you can explore.

Interview Tips

Next, you will need to schedule interviews and be prepared with questions that pertain directly to the specifics you are looking for. Be sure to include conversation about rates, their preferred accounting software program, and their hours of operation to confirm if the person is a good fit and if there is mutual compatibility. Also, find out if they are part of a corporation or work individually. Working with corporations could mean you’ll be getting answers from whoever answers the phone instead of always having direct access to one person with whom you’ve built a relationship and trust. Your preference will depend on the level of general help versus individualized attention you need.

Choosing the best accountant for your business has the power to transform your accounting processes and give you the guidance you need to remain successful. Beck and Company CPAs can offer more individualized guidance into the important process of deciding on the accountant that is suited to meet your business’ needs. Please contact us for more information.

What Makes a Good CPA or Accountant?

A good CPA or accountant is hard to find. When it comes to entrusting your business’ important financial information to someone else, you ought to have high expectations. After all, the CPA or accountant you choose to manage your business will have access to all of your financial records and will provide you with insight into your financial decisions. This person should be chosen carefully.

While many business owners attempt to “handle it all themselves”, the reality is most business owners cannot manage their businesses successfully and handle the financial side of things at the same time. As a result, they look to outside help (usually in the form of a CPA or accountant). While we cannot pick your CPA for you, we can offer you some insightful tips to help guide you to the right CPA for your business or organization. We believe the following traits characterize a good CPA or accountant:

They must have a basic understanding of your industry.
This one should be a given. Your CPA or accountant needs to be familiar with your business’ industry in order to give you the advice you need and manage your accounts properly. While they do not need to be an expert, they do need to have a clear understanding of what sets your industry apart (particularly in the area of accounting). It’s possible to work with an accountant who is unfamiliar with your industry; however, it will be easier on both you and them if you choose an accountant who knows a little about your particular industry. Each industry has different terms and insider information that can only be learned on the job, so be sure to look for someone who knows the terminology.
They must be attentive to details.
An accountant or CPA needs to be detail-oriented in order to properly manage your finances. They must be aware of every tiny detail and change that occurs within your organization. You won’t have time to update your accountant on every single financial detail; that is something he or she will have to do for themselves. Make sure that the accountant you choose can take charge of your business’ finances and take care of the little things when it comes to your basic financial situation.
Good communication skills are a necessity.
You will be communicating with your CPA frequently, so make sure that you feel comfortable with your CPA or accountant. If he or she does not understand something, they have to be willing to ask for clarification or help. Communication is absolutely essential to the success of your accountant-business relationship, so make sure that your CPA possesses the skills they need to communicate effectively.
They need to know how to work a computer.
In this day and age, this may seem like a ridiculous request; however, there are many accountants and CPAs out there who have limited knowledge when it comes to computers and various software programs. In order to get quality reports, you need to have a computerized accounting system in place. Make sure that your CPA or accountant is familiar with the system and knows the basic workings of Word, Excel, email and the Internet.
They must always be striving to learn something new.
The accounting field is always changing. New regulations are passed, new laws are instated, and new industries emerge. Your accountant or CPA should be committed to learning more about the laws and regulations of the field. Some CPAs will acquire new skills through attending classes, while others will join groups to help them learn new tips and tools. Whatever they choose, make sure that they are committed to furthering their knowledge about accounting and preparing your business for success.
They need to understand the big picture.
A good accountant or CPA will not focus only on the accounting; they will take a look at the business as a whole and offer suggestions for improvement. A good accountant understands that the financial aspect of the business is simply one part of a whole, and he or she understands that one financial error can affect the entire business.Before hiring an accountant or CPA, give them an overview of your business and what you do. In order to accomplish the work you need, your accountant will need to understand the work you do. By providing them with an overview of your business, you are helping your accountant keep the big picture in mind as they focus on the little things.
They must be willing to follow through.
You want someone who will be reliable and who will finish projects through to completion. As you are interviewing accountants and CPAs, check their references and current clients. Are they happy with the accountant’s work? Does the CPA follow through on all of their projects? How does he or she respond in the case of a project delay? Find out how reliable they are before you hire them, or you could be faced with many incomplete (or late) projects.
They must understand how to do proper job costing.
Your accountant or CPA must understand how to do job costing properly. This includes tracking all costs by item and job detail. This will help you gain a better understanding of how much your projects are costing you, so you must depend upon their information to be accurate.
They must be willing to commit to your business.
This is the most important trait in a good accountant or CPA. He or she must be able to fully commit to your business. Without his or her full commitment, you might as well be doing the job yourself. You want someone who is committed to your vision and will make your business a priority. Don’t be squeezed into their schedule. If you are considering hiring an accountant who cannot meet the commitment level you desire, look elsewhere. You need to be sure that your accountant is doing everything possible to ensure the success of your business.

As you can see, there are certain characteristics that make up a good CPA or accountant. If you have any traits to add to the list, please leave your comments below. If you are looking for a CPA or accountant to take care of your business, contact us today. Our Beck and Company CPAs provide many services to help your business achieve the success you desire.

For a look at how a Beck and Company CPA can help your business, read our CPA client stories. Discover more tips for choosing the right CPA or accountant.