Employee or Independent Contractor? Classify Workers Correctly
The IRS has publicly stated it is cracking down on organizations that improperly classify workers as independent contractors instead of employees. Are you confident that your employee classifications would stand up to IRS scrutiny? Understand the Requirements If a worker is an employee, your not-for-profit organization must provide a Form W-2 annually and withhold income…
IRS Releases Interim Guidance on Parking Fringe Benefits and Penalty Relief
On December 10, 2018, the IRS issued long-awaited interim guidance to tax-exempt organizations under Internal Revenue Code (IRC) Section 512(a)(7). Notice 2018-99 provides guidance on determining the amount of parking expenses for qualified transportation fringe benefits (QTFs) that are now unrelated business taxable income (UBTI). On the same day, the IRS also issued Notice 2018-100…
Expense Allocations & Indirect Rates – Changes in Trends & Implementation for New ASU 2016-14
With organizations now required to present a statement of functional expenses under ASU 2016-14 and their financial information becoming more readily available to both donors and the public, it is more important than ever to have your expenses clearly identified and allocated properly. Incorrect functional and/or indirect allocation can render perfectly legitimate and necessary expenses…
Invest Time and Resources to Improve the Month-End Close Process
By Sharon Carbonell, CPA | Manager, Outsourced Accounting and Advisory Services For many who work in the finance department of a nonprofit or for-profit business, the month-end close process is a constant source of strain. Inefficiency and operational ambiguity are sore spots in particular, generally the result of manual data entry, lack of coordination, deficient…
The Audit Dance: A Well-Choreographed Routine
Think of your not-for-profit organization and its external auditor as dance partners performing a well-choreographed routine. To execute the dance properly, each dancer must complete specific moves and coordinate timing with his or her partner. Likewise, your organization and its audit firm each have particular duties in the audit process but share the same end goal:…
Becoming a Great Place to Work: It is Not About the Money
“It is easy to understand why companies have focused on… pay, parking, cafeteria discounts, etc.” when trying to attract, retain and motivate workers, stated Gallup in introducing its research on its Management Journal website. Why? Because it’s usually fairly easy to tinker with those variables. The problem is, “these factors do not really make a difference to the best,…
Payment Card Industry (PCI) Compliance and Your Nonprofit Organization
By Mac Lillard, CPA, CITP, CISA, CFE | Audit Senior Accountant According to the Payment Card Industry Data Security Council (PCD DSC) any organization that stores, processes, and/or transmits cardholder data is required to be compliant with Payment Card Industry Data Security Standard (PCI DSS). There is a common misconception that use of a third-party provider…
Why is Preparation of a Complete and Accurate SEFA so Imperative?
By Laura Malcom, CPA | Audit Manager The schedule of expenditures of federal awards (SEFA) is the “meat” of any Uniform Guidance audit. Often it is one of the first pieces of information that a CPA firm will request when designing and planning the audit. The total expenditures reported in the SEFA is the determination…
Your 2019 Cybersecurity Roadmap
Effective cybersecurity measures and actively futureproofing your technology are no longer luxuries or only feasible for large enterprises. Tackling these critical issues together in a smart, coordinated way allows your business to mitigate risk and plan for the future while also maximizing your IT resources and budget. To do this, business leaders should first understand…