Nonprofit Jones & Roth CPAs & Business Advisors, CPAs & Business Advisors

We are passionate about the nonprofit sector, and that shines through in the work that we do and how we communicate. Lewis.cpa is well-versed in making these financial reviews an asset for nonprofit concerns. We can walk you through the process for a nonprofit audit and ensure that you understand the entire process. Although many factors contribute to a non-profit’s success, transparency and accountability stand out as foundational pillars that strengthen stakeholder confidence. These principles are vital in fostering financial accounting services for nonprofit organizations integrity, which ensures that funds are managed responsibly and effectively.

As we engage in a comprehensive suite of compliance services, our nonprofit clients look to us to provide:

If you are unable to see the form below, please complete your submission here. With their support, The Book Fairies is on a mission to break the cycle of illiteracy stemming from poverty and a lack of access to reading material. It’s a simple yet incredibly impactful gesture that should be revered and modeled by others. As a result of our work with our clients, we are often in a position to suggest operational improvements or areas of concern that could be strengthened.

Independent Audit vs. IRS Audit: What Is the Difference?

A nonprofit audit is a formal, independent examination of a nonprofit’s financial records and internal controls. The goal is to verify the accuracy of financial statements and ensure compliance with applicable laws and regulations. Nonprofit audits typically include evaluating internal controls, analyzing financial data, and assessing risks. The AICPA and the individual state governments require auditors to be independent. The Sarbanes-Oxley Act requires publicly traded companies to rotate lead auditors — not necessarily audit firms — every five years.

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• Reports can be generated based on financial statements, donor reports and compliance summaries, often in real-time and allowing customization.
• Leveraging AI tools and a partner you can trust, not only benefits your organizational efficiency but helps grow your mission.
• Certain grants, particularly those from government agencies or large foundations, require audited financial statements as part of their awarding criteria.
• In the nonprofit world, organizations are well aware that there are “strings attached” to many of the resources that support the mission work.
• It demonstrates to donors, members, directors, and regulators that the firm does its work transparently, comprehensively, and above board, and thus, the public has more confidence in the non-profit.
• Our services are professional and thorough, ensuring our highest level of commitment so that your nonprofit operates at its highest potential.
• If your bank, investors or creditors are seeking an audit from your non-profit organization, call us first.

If possible, start implementing changes before you file your nonprofit’s annual tax return so your efforts will be reflected on your nonprofit’s Form 990. Built from the ground up to serve clients in the nonprofit world, Jacobson Jarvis is the Puget Sound’s leading specialized accounting firm, and we’ve earned our reputation. Working with nonprofits across Puget Sound region for over 30 years, we offer experience and insight no other accounting firm can match.

• The third party (usually a funder) may understand the goal of cost savings and accept a review instead.
• Unconditional promises are recognized immediately, reflecting the nonprofit’s right to the resources.
• Your system must feature a robust audit trail to track all changes and activities, ensuring transparency and accountability throughout the many tasks, documents, and workflows in the system.
• Either way, if you need help with this or any stage of the audit process, don’t hesitate to reach out to financial professionals like the experts at Jitasa.
• Sechler Morgan CPAs PLLC is an Arizona-based CPA firm dedicated to serving nonprofit organizations with care and purpose since 1985.

Best Practices for Nonprofit Volunteer Management

Nonprofits are federally-recognized, tax-exempt organizations committed to mission-driven work that serves the community. Unlike for-profit businesses, which aim to generate profits for shareholders, nonprofits reinvest their surplus revenue to further their cause. Nonprofit organizations can undergo various types of audits to ensure their financial integrity, compliance, and operational efficiency. Understanding the different types of audits is crucial for nonprofits to select the most appropriate one for their needs. A nonprofit audit is more than just numbers on a page—it’s your chance to demonstrate transparency, build credibility and identify areas for growth. By embracing the audit process, your organization can operate more efficiently and better fulfill its mission.

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• The same legislation advanced consistent procedures to conduct an independent audit of a nonprofit organization.
• This way our solutions and recommendations are always personalized to your precise aspirations and expectations.
• If the organization does business with other taxpayers and entities, the IRS audit of the latter might spill over to the former.
• In its letter to management, the auditing firm approaches its evaluation from two directions.
• For example, grants designated for specific projects must be clearly reflected in this statement.

The statement of functional expenses further breaks down expenses by program, management, and fundraising categories, highlighting the efficiency of resource allocation. Furthermore, regular audits strengthen donor confidence, as they demonstrate a commitment to ethical practices and financial stewardship. Non-profits that prioritize financial accuracy through routine audits are better positioned to allocate resources effectively, ultimately improving program outcomes.

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Federal grants in the United States, for example, may require adherence to the Uniform Guidance (2 CFR 200), which outlines administrative, cost, and audit requirements. Nonprofits must ensure their financial systems can meet these reporting standards to maintain eligibility for funding. Assessing internal controls ensures the integrity of financial reporting, safeguards assets, and promotes operational efficiency.

Nonprofit audited financial statements offer much more than financial validation; they help you detect internal inefficiencies, which means your financial affairs stay on track, enhancing overall accountability. An audit is not required for small nonprofits but it is highly recommended because it provides a third-party assessment of the organization’s financial records and practices. Understanding the scope of a nonprofit audit is an important part of the process to ensure accuracy and compliance with reporting standards. The scope refers to the extent and type of review that will be conducted by the auditor.

A formal audit, performed by an independent auditor, provides an impartial assessment of your financial statements and internal controls. This results in an audit opinion that can enhance credibility with donors, grantors and other stakeholders, bringing trustworthiness to your donation appeals. For many organizations, the idea of an audit conjures images of endless paperwork, tough questions and stress. In fact, they’re one of the best ways to ensure your nonprofit’s financial practices are strong, donors continue confidently supporting your work and your mission stays on track. Nonprofits must comply with specific reporting and disclosure requirements to maintain transparency and accountability to stakeholders.