Nonprofit organizations don’t need to submit an audited report unless they receive more than $750,000 in federal funding over a fiscal year. States have their own requirements for non profit organizations. However, even in the case that your organization does not need to submit financial statements, hiring a CPA in Lake Nona, FL can benefit in more than one ways.
Here, we will take a look at some of the was a non profit organization can benefit by hiring the services of a CPA in Lake Nona, FL.
1. Save Time and Money in Preparing Accounts
Although non profit organizations are not required to audit their accounts, preparing financial statements is still necessary. Without accounting reports, the management cannot know how the funds are managed.
A CPA in Lake Nona, FL can provide expert services in quickly preparing the required financial statements. The experts know the latest best practices in reporting financial transactions. They can use their expertise in preparing professional quality statements that are timely, relevant, useful, and fulfill other principles or accounting best practices. With the help of a CPA in Lake Nona, FL, you can rest assured that the statements can be made on time with no delays. This will ensure that the management hasaccurate report of the accounts that can be used to chart thefuture direction of the organization.
2. Take Account for All the Costs
A CPA in Lake Nona, FL has professional experience in analyzing different costs. The accounting professional can analyze the transactions and ensure that the statements accurately reflect the true cost of operations. All the benefits and payroll taxes will be depicted in the financial statement. This will ensure that the financial figures can be relied upon when making strategic decisions regarding the non profit organization.
3. Financial Disciple
With the help of a CPA in Lake Nona, FL, non profit organization can attain financial discipline that will keep the operations sustainable. The professional certified accountant will inform about financial best practices such as accounts receivable aging, cash flow projection, keeping reserves, and others financial strategies. These suggestions will ensure that the non profit organization uses the resources efficiently and better utilizes them for managing operations. The financial discipline acquired by hiring a CPA in Lake Nona, FL will allow the organization to sustain the activities and even remain self-sufficient without much reliance on external funding.
4. Better Control Over Company’s Finances
Without appropriate controls and monitoring, the precious resources of a non profit can’t be efficiently utilized. A CPA in Lake Nona, FL will implement the right checks and balances that will result in better monitoring and utilization of the limited funds. A certified expert can devise policies and procedures that will help in efficient monitoring and use of the funds. You can be able to leverage from the tremendous amount of accounting knowledge possessed by the expert in streamlining internal financial operations. The accounting professional will compile reports and present them in a manner that will help gain a complete understanding of the financial position of the company.
5. Improve Credit Ratings
Sometimes, a non profit has to use credit to meet financial obligations. Having a good credit score will make it easy to obtain the required credit at the most beneficial terms. A CPA in Lake Nona, FL can recommend and implement financial practices that can help improve credit ratings. The professional accountant knows about strategies that can help in increasing the credit score of the company. The strategies can help improve reputation among the creditors, resulting in easy access to credits at reasonable terms.
6. Preparing Fund Proposals
A CPA in Lake Nona, FL can also provide assistance in making grant proposals. The accountant will prepare a professional proposal that will make a positive impression on the grantors. They can help prepared detailed reports showing past financial performance. Also, the reports will contain future projections showing how the acquired funds will benefit the organization in expanding operations.
Inexperienced accountants will find it difficult to prepare a professional quality proposal. They don’t know what information should be included that is demanded by the grantors. A professional CPA in Lake Nona, FL can prepare relevant and detailed accounting reports that can make a positive impact. The reports can demonstrate financial discipline and responsible use of funds to the potential fund providers. Getting the help of a CPA in Lake Nona, FL will greatly increase the chances of the grant proposal being accepted.
7. Minimize Risk of Fraud
Temptation abounds wherever money is found. And non profit organizations are also not immune to this risk. Blinded by the prospect of getting easy money, some people can go at great lengths to defraud the accounts and divert funds to their coffers disregarding the effects it will have on countless of poor people served by the non profit organization.
Various fraud and embezzlement stories abound relating to non profit organization. Fraud cost more than $40 billion to non profit companies across the US. Hiring a CPA in Lake Nona, FL will reduce the risk of internal fraud. They can implement checks and balances that will ensure no opportunities arise for fraud and embezzlement of funds. The professionals can recommend such measures as requiring three signatories for every transaction, avoid the use of debit cards, and regular audit of the accounts. These measures can ensure that potential fraudsters don’t have any chances of embezzling funds of non profit organization.
8. Prevent Tax Audit of Accounts
A great reason to hire a CPA in Lake Nona, FL for non profit organizations is that they will be able to avoid an audit by the tax regulation authority. The certified accountant will make sure that no situation arises for the IRS to suspect operations of the company. The accountant can use in depth information about tax and regulatory statutes to offer guidance on how to ensure compliance.
Many reasons can trigger an external account. From excessive write-offs to being ‘too’ charitable, a lot of transactions can raise a red flag. A CPA in Lake Nona, FL will make sure that there are no suspicious financial activities that can result in an audit by a federal or state agency.
9. Provide Help in Budgeting
Budgeting is crucial for judicious utilization of resources. Without budgeting, a company cannot ensure efficient utilization of the funds. A CPA in Lake Nona, FL will help prepare an effective budget that will ensure that the funds are utilized in the right direction. The professional will provide expert budgeting advice that can also help in early retirement of debts.
10. Get Valuable Insights Into Best Practices
Professional certified accountants work with a wide range of clients. They have experience in working with a large number of businesses relating to different agencies. The professionals can not only help you realize the best practices that result in efficient resources utilization. They can inform about innovative practices that result in optimum usage of the funds. Getting insight on what has and hasn’t worked will ensure that the company’s resources are managed in the best possible manner.
11. Detect Profitable Opportunities
A CPA in Lake Nona, FL has experience in detecting profitable transactions. They can analyze the financial news to detect opportunities that can help grow the resources. The professionals can inform about the business opportunities that you may be missing out to grow and expand the operations.
With the help of a certified accounting professional, you can get insights into inventory management, cash flow patterns, and financing opportunities that can increase funds. They can also offer qualified advice on how to avoid or minimize taxes on profitable ventures. Also, the financial forecast prepared by the professional will help identify opportunities that can help increase the financial resources.
12. Future Financial Planning
Probably the biggest benefit of hiring a CPA in Lake Nona, FL is that the professional can help in future financial planning. They can ensure that the company’s resources are allocated in an efficient manner. They can provide guidance based on advanced financial modelling using tools such as NPV, IRR, CAPM, and more.
Difference Between a CPA Accountant and Non Certified Accountant
A CPA certified professional is worlds apart from a non certified professional. CPA is the most respectable and renowned certification around the world. The professionals go through rigorous requirements to become get certified. Apart from solid experience, they have to pass a competitive test in order become eligible for the certification.
When you hire a CPA in Lake Nona, FL, you can rest assured that you have handed the account to a competent and experienced person. The professional accountant will expertly perform the reporting task, and also offer qualified financial and tax advice that can help increase the funds.
CPA professionals regularly update their knowledge by meeting continuing education requirements. You can trust the certified professional to provide you the best guidance and advice regarding accounts-related matters.
All CPA licensed professionals meet vigorous state requirements. They know about the local tax laws and can offer expert guidance on how to comply with the legal requirements. Knowledge of the local laws and the tax code is a big part that CPA professionals are more qualified to handle company’s accounts that a non professional.
The designation of accountant alone won’t offer assurance that you will get quality work. There is no telling whether a non certified accountant can accurately report the financial transactions. Also, non certified accountants generally don’t have the knowledge to counsel you on money saving strategies. Also, they can’t offer the best guidance regarding tax related matters. That’s the reason that IRS designates non certified accountants as ‘unenrolled prepareers’. Unenrolled prepares can’t fully represent a company in tax related matters. Only CPAs and professional attorneys are allowed to represent clients before the IRS.
Unlike non certified accountants, CPAs can offer insight guidance on money saving strategies. They can offer advice on different ways in which money can be saved and reinvested in an efficient manner. They can offer deep insights into the company’s financial position using analysis of cash flow statements, profit and loss statements, and balance sheets. The thorough analysis will help uncover inefficiencies in handling financial resources. They can offer advice to improve the process that can cut internal operational costs and maximize benefits.
CPAs are more qualified to offer decisions that can help improve utilization of funds. The financial experts have broad knowledge about different aspects of the business. They can offer advice and counsel that can help detect inefficiencies. This can ensure that the limited funds of the non profit company are used efficiently in line with the industry best practices. A trusted CPA will make sure that you understand all the financial irregularities and optimize the system. The professional will ensure that accurate, timely, and relevant financial information is communicated to the management that can help chart future directions of the company.
The above are reasons enough that you should always hire professional certified accountants. Even if a non profit organization is not required to audit and submit accounts, it can benefit from professional services of certified accountants. Hiring professionals can ensure that the organization’s resources are handled efficiently and in a way that fully complies with both federal and state requirements. The certified professionals can also ensure that all the funds are handled judiciously while avoiding any risks.
If you need more information about accounting and tax services, please contact us at 407-502-2400. Freedomtax Accounting’s staff has been providing honest accounting services and tax services for almost 20 years. Our tax accountants and IRS enrolled agents (irs ea) specialize in corporate accounting and bookkeeping, tax services, tax preparation, back taxes help, tax debt relief, tax resolution, tax planning, itin number, incorporations, and non profit 501c3 tax exempt. (Freedomtax’s accounting and tax professionals are NOT CPA’s. CPA services provided by third party provider.)