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Nonprofits must comply with specific reporting and disclosure requirements to maintain transparency and accountability to stakeholders. These requirements, governed by accounting standards and regulations, ensure financial information is presented accurately. This system ensures resources are used according to donor restrictions and organizational objectives. For example, an endowment fund may stipulate that only income generated can be used for specific programs, while the principal remains intact.

Rocio (Erika) Grata, CPA

These technologies can help the audit team improve its results and provide greater insights to the finance team. By clearly articulating the findings of an audit along with recommended corrective action, nonprofits can help ensure transparency into their financials while maintaining their reputation with those who trust them with their donations. There is a growing trend for smaller nonprofits to have “remote audits” where the auditors conduct the audit without a site visit. Nonprofit Organizations may need an audit to fulfill a legal requirement or as part of a contractual agreement. In these cases, the Board should determine which type and frequency of audits to conduct based on the organization’s circumstances. Cash flow management is critical for nonprofits, which often face fluctuating donation patterns and grant disbursements.

• Leadership in serving the nonprofit sector — evident in our publications, seminars, surveys, and memberships.
• The best way to determine this for each option is by asking for a request for proposal (RFP).
• Our Audit Readiness Services are here to help you navigate these challenges with confidence.
• “A lot of findings result because people are overwhelmed and overworked, with the need to do more as standards change,” Archambeault said.
• There are no sanctions or penalties if an organization passes on the compliance check questionnaire.
• These improvements may involve fundraising opportunities you weren’t aware of and expenses you no longer need.
• Grant compliance and proper management is also key to help your organization retain crucial funding.

Internal Controls

Jacobson Jarvis has been a long-standing partner leading financial workshops to empower and educate future leaders of color. It truly has been a pleasure working with JJCO staff- their energy and passion is unparalleled. I will be using parts of the Finance Unlocked for Nonprofits and the information is making my preparation immensely easier and I believe the presentation will be much more effective. My big lesson was that change may at times be sneaky or elusive but it is never fast. Nonprofit IT security designs must follow the direction of their business designs or fail to be effective in business environments and relationships they must support.

OUR CLIENTS SAY

• We can walk you through the process for a nonprofit audit and ensure that you understand the entire process.
• Reports can be generated based on financial statements, donor reports and compliance summaries, often in real-time and allowing customization.
• Nonprofits can also use carrots, they should recognize their most consistent donors with awards or simple thank you feedbacks.
• This focuses on the accuracy of financial statements and providing stakeholders with an objective overview of your organization’s financial health and practices.
• If any CPA out there is looking for a change, I think you’d be pleasantly surprised by the folks at J&J.

Check out our extensive mix of educational resources, and please contact us should you need any help finding the answers to your questions. Comprehensive https://nerdbot.com/2025/06/10/the-key-benefits-of-accounting-services-for-nonprofit-organizations/ systems that treat every financial transaction in a transparent and well-documented manner, ensuring financial accountability. While she had mentors and people helping her make that transition, she says there was never any pressure in taking a certain path over another, and she was able to proceed at the pace she wanted to. It was all about making the schedule work for her and her family, as well as the firm. When choosing a CPA firm, it was a natural fit to join Jones & Roth because of the chance to move to Eugene to be closer to his extended family, as well as having existing connections with a few Jones & Roth team members. Kim continued on a FlexPath for several years before transitioning to a ClassicPath and taking on leadership responsibilities in 2020.

This process ensures the accuracy, completeness, and compliance of the financial statements with accounting standards and regulations. The primary goal of an audit is to provide an objective evaluation of an organization’s financial health, offering assurance to stakeholders that the financial information is reliable and trustworthy. The national and state laws governing nonprofit organizations and their audited financial statements are myriad and sometimes confusing. A financial audit might be expected for many reasons such as organization size, the nature of its work, foundations e.g. the sources of its funding, or if it is a party accounting services for nonprofit organizations to government contracts. However, nonprofit audits don’t have to be complicated if you understand, more or less, how they work.

And yet, they are still nonprofits with restricted funding, revenue recognition, in-kind contribution, and other aspects specific to nonprofits. Doeren Mayhew, a top nonprofit audit firm, is here to help you understand your financials, deliver transparency to stakeholders, keep you compliant on state and federal levels, and meet your organization’s goals. We achieve this by delivering high-quality nonprofit audit and CPA services. This means you have more control over when, where, and how you conduct independent audits.

Nonprofits operate under immense scrutiny—from the IRS, grantmakers, government agencies, and even the public. Unlike for-profit companies, nonprofits must not only manage their finances accurately but also prove that every dollar supports their mission. Our non-profit organization has used Wegner CPAs for over a decade for our annual audit and tax return preparation.

• Regular audits reinforce your nonprofit’s transparency, strengthen donor trust, and help you stay on a good footing financially.
• Unlike for-profit entities, nonprofit revenue often involves donor restrictions or grant conditions.
• For example, nonprofits receiving $750,000 or more in federal funding annually are subject to a Single Audit under Uniform Guidance.
• Our specialization allows us to dig deeper into our clients’ issues to find solutions unique to each client.

“Independent” refers to the fact that the auditor/CPA is not an employee of the nonprofit but instead is retained through a contract for services, and hence is “independent.” A nonprofit audit is a comprehensive review of an organization’s records, reports, transactions, policies, and procedures. When a nonprofit audit is conducted by an independent auditor, its goal is to assess the organization’s overall health and ensure compliance with federal, state, and general financial regulations. Remember that CPAs and auditing firms work with their clients to improve financial practices and ensure accountability. In this sense, they are responsible to the public as well as to their clients.