While many organizations think they need an audit, other services may better meet your needs. Services related to financial statements include:
- An audit is often required by banks, parent organizations, or governance agreements. An auditor will issue an opinion on whether your financial statements are presented fairly in all material respects. We will also issue a management letter with recommendations for improving controls and procedures. An audit includes observations of key accounting processes and testing of controls, as well as performing procedures to test the amounts in the financial statements. Those procedures include inquiry, analytical procedures, and detailed testing.
- During a review, we perform limited procedures (inquiry and analytical procedures) to provide limited assurance on the financial statements. We do not perform work related to processes and controls.
- In a compilation, we will prepare your financial statements in accordance with accounting standards, but will not offer any assurance or opinion on those financial statements.
Rather than a service related to financial statements, some organizations find testing of their internal accounting processes helpful to ensure they have appropriate internal controls in place to reduce the risk of improper financial reporting or misappropriation of assets. We will observe key accounting processes and perform tests of those processes to determine if they are operating effectively. We will then provide a report with our observations and recommendations to strengthen controls.
Call us to help determine which service best meets your needs.
We suggest the following steps:
– Draft and RFP (Request for Proposal) for prospective auditors. The RFP should describe your organization, its programs, funding sources, and the type of service you need. Once you find an auditor, they will provide an engagement letter outlining the scope of services to be provided to you.
– Assemble documents: Collecting and organizing the documentation auditors need before they arrive saves them time and saves you money. Usually auditors will provide a list of documents, such as financial statements, accounting records, physical inventories and investment-related documents, relates documents, and the date when each item is needed.
– Anticipate issues: Don’t wait for auditors to find problems and ask questions. You can expedite the process and reduce costs when you identify and address issues before they’re raised by auditors.
Nonprofit organizations must file an annual information return with the IRS, unless an exception applies. Churches, some church-affiliated organizations and certain other types of organizations are not required to file a Form 990. See the chart below to determine which filing is required for your tax-exempt organization:
|Form 990-N:||Form 990-EZ:||Form 990:||Form 990-PF:|
|Organizations with gross receipts normally less than $50,000||Organizations with gross receipts less than $200,000 and total assets less than $500,000 a Form 990||Organizations with gross receipts more than $200,000 or total assets more than $500,000||All private foundations|
At Brooks McGinnis, we do more than prepare your tax return. Our CPAs work with you to understand your business and offer tax planning strategies that can reduce your tax liability. Call us today to determine how we can help.
Our fee for services is competitive and any particular fee depends on the complexity and scope requirements for each engagement. That is why we use a team approach at Brooks McGinnis; so the detailed or routine work is performed by our staff at lower rates and reviewed by our Partners and Managers. Complex issues are handled by our Partners and Managers, and we always give you a fee estimate before a new engagement is started. We have also invested heavily in technology in order to be as cost efficient as possible.
HOW CAN WE
Brooks, McGinnis & Company, LLC is a team of over 40 experienced accountants and CPAs serving the Atlanta area. Founded in 1976, our firm specializes in assisting nonprofit organizations, privately held businesses, individuals, and employee benefit plans.