Learn the benefits of having one CPA firm perform your audit, review, and/or 990 form.
Do you know why you should hire a CPA firm for your accounting needs as opposed to going to different resources to perform each task? If you need multiple services performed — such as an audit, review, or the IRS For 990 — you can probably guess what the biggest benefit of hiring one CPA firm is:
- Having one firm creates the convenience of getting all your needs addressed cohesively under one roof
The convenience of getting all your needs addressed cohesively under one roof
The Form 990 is a very important document to the nonprofit organization. Turbo Tax explains that the IRS Form 990 is an informational tax form that most tax-exempt organizations must file annually. In a nutshell, the form gives the IRS an overview of the organization’s activities, governance and detailed financial information.
Form 990 also includes a section for the organization to outline its accomplishments in the previous year to justify maintaining its tax-exempt status. In collecting this information, the IRS wants to ensure that organizations continue to qualify for tax exemption after the status is granted.
Although it is an informational tax return, many members of the public rely on Form 990 as their primary source of information when evaluating the nonprofit. The 990 is a very extensive informational tax return consisting of, at a minimum, 12 pages of information about the organization and how it operates! Yes, that’s a lot of pages. And, at the same time, donors and grantors have become very familiar with the document and can easily spot area of concern.
When a nonprofit organization also has its financial statements reviewed or audited by an independent CPA, the potential grantor or donor will request this document as well as the 990. When these two documents do not reflect the same information, it can create additional questions and difficulties when the nonprofit is applying for grant awards. This is when that single CPA firm comes in.
You may have people in your accounting department, but what happens when they have limited knowledge or experience? Hiring a CPA Firm gives you access to a full team of accountants and professionals that have that knowledge and experience.
When you use the same CPA firm to perform the review or audit and prepare the 990, the two documents are prepared with the same information and the nonprofit client can reduce the amount of document request required to complete both documents saving the nonprofit one of its most valuable asset, time.
SMCO: The CPA firm for you
Finding a CPA firm that can you can get in touch with is a first benefit. SMCo is all about making your audit as timely, comfortable, and understanding as possible while providing value that goes beyond an opinion.
We consistently build impactful relationships with our clients to understand and anticipate their individual needs and deliver unparalleled customer service.
Our technology and expertise simplify the auditing process, as we have a dedicated audit staff available year-round to help educate, prepare, and assist our clients to ensure you have the necessary tools and understanding for a successful audit.
Contact us so we can learn your needs.
Check out additional resources below on benefits of hiring a CPA firm and more!