FirmKey’s partners specialize in nonprofit accounting, offering tailored bookkeeping, financial reporting, tax preparation, and audit services.
Nonprofit Audits
Audits are a critical component of nonprofit accounting, ensuring transparency, compliance, and accountability. Many charities struggle to find qualified firms and independent auditors that meet the standards required for GAGAS/Yellow Book audits, financial statement audits, and HUD audits. Inconsistent or inadequate preparation can result in failed audits, financial penalties, and loss of grant funding. FirmKey’s network of independent CPAs and accounting firms specializes in conducting a wide range of audits to meet compliance and grant funding requirements. Services include:
Full and limited scope audits:
Financial statement audits, single audits (GAGAS/Yellow Book), HUD audits.
Specialized audits:
Customized audits as required for compliance and specific grant funding requirements.
Financial statement audits:
Comprehensive assessments to ensure accurate financial reporting and compliance.
Single audits (GAGAS/Yellow Book):
Audits required for organizations receiving federal funding.
HUD audits:
Specialized audits for organizations receiving Housing and Urban Development funding.
403b audit (retirement plan audit):
Comprehensive reviews of retirement plan operations to ensure compliance with applicable regulations.
Grant audit:
Verification of grant expenditures and compliance with donor requirements.
HUD financial reporting:
Specialized reporting for organizations receiving Housing and Urban Development funding.
Audit readiness & preparation:
Comprehensive support to ensure readiness for single audits, financial statement audits, and HUD audits, minimizing the risk of compliance failures and funding disruptions.
Financial Reporting & Leadership for Charities
Financial reporting is essential for maintaining transparency and demonstrating effective stewardship of funds. Many nonprofits face challenges in streamlining their month-end close processes, preparing accurate financial reports, and meeting board reporting requirements. FirmKey’s network partners provide tailored financial reporting and leadership services to enhance transparency, decision-making, and scalability. Services include:
- Monthly bookkeeping and reconciliations.
- Financial statement preparation: GAAP-compliant reports including statements of activities, financial position, cash flows, and functional expenses.
- Budget preparation and forecasting: annual, 3-year, and 5-year projections.
- Controller services: revenue recognition (ASC 606, ASC 958-605), month-end close, and oversight of accounting processes.
- High-level advisory and board reporting.
- Multi-entity financial reporting and technical accounting oversight.
System Implementation & Optimization for Nonprofits
Outdated accounting systems and inefficient processes can hinder a charity’s ability to scale and maintain accurate financial reporting. FirmKey’s network partners offer comprehensive system implementation and optimization services to streamline operations and improve efficiency. Services include:
- Transitioning from outdated systems to modern accounting platforms (e.g., QuickBooks Online, Sage Intacct).
- ERP implementation and integration (e.g., QBO, Bill.com, Asana).
- Development of service level agreements (SLAs) and accounting calendars.
- Optimizing processes to decrease month-end close times.
- Medicare Cost Report (MCR Report): specialized reporting for healthcare-related nonprofits to ensure compliance and optimize reimbursement.
Grant Reporting & Project Reporting
Grant reporting is essential for grant funded entities to maintain compliance and secure future funding. However, the complexity of grant reporting requirements can be overwhelming, particularly for organizations with limited internal resources. FirmKey’s network partners assist with:
- Specific grant reporting and tracking for charitable entities.
- Preparing financials for grant compliance and audit readiness.
Tax Strategy & Compliance
Navigating complex nonprofit tax requirements can be challenging, especially with varying state-specific regulations and evolving compliance standards. FirmKey’s network partners provide expert guidance to ensure tax compliance and optimize financial strategy. Services include:
- Annual 990 filings.
- Regulatory compliance: ensuring adherence to 501(c)(3) guidelines, state filings, and grant reporting requirements.
- Multi-year tax planning and strategy for charities.
Financial Leadership & Strategic Advisory Services for Nonprofits
Nonprofits often face strategic challenges that require high-level financial oversight and planning. FirmKey’s network partners provide strategic financial advisory services to support long-term growth and stability. Services include:
- Fractional CFO services: strategic planning, financial modeling, and forecasting.
- Financial modeling for growth and long-term planning.
- Support for grant applications and fundraising campaigns.
- Strategic financial planning and forecasting.
Nonprofit Accounting: Getting the Basics Right
Managing a charity’s accounting requires a clear understanding of the unique requirements facing nonprofit organizations. FirmKey’s network partners guide nonprofits through:
- Setting up a chart of accounts: developing a tailored nonprofit chart of accounts to track revenue, expenses, and net assets.
- Preparing financial statements: generating accurate and GAAP-compliant reports for stakeholders.
- Tracking restricted funds: ensuring donor-restricted funds are used appropriately.
- Preparing for audits: ensuring readiness for single audits, financial statement audits, and HUD audits.
- Filing form 990: maintaining compliance with IRS requirements for tax-exempt organizations.
- Budgeting and forecasting: developing budgets that align with organizational goals and funding requirements.
Talk to an Expert
FirmKey’s network partners offer specialized nonprofit accounting services that empower organizations to focus on their mission with confidence. Whether you need nonprofit bookkeeping, nonprofit financial reporting, nonprofit tax preparation, or comprehensive audit readiness support, FirmKey’s network provides tailored expertise to meet your needs. Contact FirmKey today to connect with an expert accountant for your nonprofit.