Accounting practices of all businesses and nonprofits are of extreme importance, but nonprofits follow strict federal and state regulations due to the amount of funds received and the source of those funds. One way to carefully monitor the accounting practices of nonprofits is with independent audits. However, not every nonprofit organization is required to have an independent audit. The first step in preparation of an audit is to determine if your organization requires one.
Does Your Nonprofit Have the Time to Stay Abreast of Changing Regulations?
The simplest and wisest way to start the nonprofit independent audit process is to find a reputable, solid accounting firm that will guide you through the process. Accounting firms, such as Beck & Company Certified Public Accountants and Professional Advisors, are not only up-to-date with all the government changes in nonprofit accounting requirements, but also know how to find creative solutions for the challenges nonprofits face because of governmental requirements. Some of the regulations, especially with nonprofits that accept federal funding, are complicated and can take your valuable time to understand.
Most of the time, federal and state regulations drive the need for nonprofit audits. However, there are other reasons for obtaining an independent audit. If your organization is required by federal and state laws to get an audit, it will be because of the amount of funds your organization has received in any single fiscal year. It is important to know and follow nonprofit federal and state laws carefully because a lapse in following the laws could result in compliance issues and a loss of funding.
Do You Want to Create Confidence in Donors?
Many times a nonprofit will want to have an audit so that the integrity and transparency of the organization can be seen by the donors. An independent audit that reflects the integrity of an organization creates a solid confidence in donors, especially in a culture that is accustomed to examples of integrity deficiencies.
How Can I Work Through the Legal Requirements?
One of the mistakes that a nonprofit organization can make is to try to wade through the legal requirements of an audit without the specialized expertise of a solid accounting firm. Employing a knowledgeable CPA firm to consult on accounting methods and audit practices is a very wise move. Beck & Company CPAs deliver specialized expertise, creative thinking, and unsurpassed service to ensure that our clients’ financial endeavors flourish. At Beck & Company CPAs, we understand your audit, tax, accounting, and consulting needs and want to work to help make your nonprofit organization efficient.
We are locally owned and operated; providing services in Washington D.C., Maryland, and Northern Virginia. Call us today at 703-834-0776 for more information on how we can help streamline your accounting methods to make your audits go more smoothly.