Alfred Jones, CPA offers financial statement preparation (attest services) to local Churches and other Christian Ministries. Financial statement preparation includes Compilations and Other Services.
When Should a Church Obtain CPA Prepared Financial Statements?
CPA prepared financial statements serve several purposes and provide a benefit to the ministry by providing leadership with the ability to demonstrate their commitment to financial accountability and transparency. Here are a few guidelines to use when determining what level of CPA prepared financial statements your church needs.
In the case of borrowing funds from a lender for building and other capital needs; church lenders typically require CPA compiled financial statements for loan amounts of $1MM and less, CPA reviewed financial statements for loan amounts of $1MM to $2.99MM and CPA audited financial statements for loan amounts of $3MM and higher.
I recommend that churches with annual revenues of $5MM and higher receive a CPA audit every year especially if there has been turnover in accounting staff positions and/or substantial financial growth. Churches with annual revenues of $1MM to $4.9MM should receive an annual CPA audit every 3 to 5 years with CPA reviewed financial statements in the off years. Ministries with annual revenues of $999K and under should have a review every other year with CPA compiled financial statements in the off year.
A financial statement compilation is a service to assist the management and leadership of a ministry in presenting its financial statements. This presentation involves no activities to obtain any assurance that there are no material modifications needed for the financial statements to be in conformity with the applicable accounting framework (such as GAAP or IFRS). Thus, a Ministry CPA engaged in a compilation does not use inquiries, analytical procedures, or review procedures, nor does he/she need to obtain an understanding of internal controls, or engage in other audit procedures. In short, compilation activities are not designed to provide any assurance regarding the information contained within the financial statements.
A financial statement compilation is the least expensive of the various forms of auditing services (the other two being a review and an audit), and so is preferred by those cost-sensitive ministries whose financial statement users are comfortable with this form of engagement. However, because there is no assurance that compiled financial statements fairly present the results and financial position of a business, a compilation is not preferred by lenders and creditors.
Under a compilation, church leadership and management takes responsibility for the preparation and presentation of the financial statements. The accountant providing the compilation services should have sufficient industry-level experience and knowledge of the client to compile the financial statements.
When completed, the accountant provides a written report that should accompany the compiled financial statements. This report states that the accountant has not audited or reviewed the financial statements, and therefore does not express an opinion or provide any assurance that the financial statements are in accordance with a financial reporting framework.
From start-ups to established enterprises, businesses rely on accurate and insightful financial information in order to maintain profitability and capitalize on new opportunities. Alfred Jones, CPA's accounting services steer you closer to these goals with accurate record-keeping and reporting as well as support on financial issues such as initial accounting system setup, cost-containment, tax planning, investments, and employee benefit and profit-sharing plans.
These services include but are not limited to:
General ledger and financial statement preparation
QuickBooks can provide useful and timely information in the form of financial statements, reports and graphs. However, it can only provide this information if you purchase the right product and then install, setup and use it properly. We don't just help you use the software, we help you use it more efficiently and more effectively.
Alfred Jones, CPA offers the following solutions to help meet your QuickBooks needs:
We train you personally! Either one-on-one or several individuals within your organization at your company's location.
We install QuickBooks on your stand alone computer or in a network environment, in either single- or multi-user mode.
We assist new QuickBooks users with initial setup including: EasyStep Interview, Preferences, Lists, Customers, Vendors, Employees, Banking and Reports. We also help experienced users manage their businesses more effectively by improving their current setup. Many users experience problems and lack the ability to generate and track important information as a result of inadequate setup.
Our QuickBooks support service can assist you with any installation, setup or operation assistance you might need. In addition, our support is not limited just to the software part of it, but we can also provide accounting and payroll assistance.
Our QuickBooks review service helps companies that have the human resources to perform daily accounting and payroll tasks, but need an accounting and payroll expert to review your transactions, accounts and reports. This review ensures that you receive timely, relevant and reliable financial information. We also inform you of any corrections, adjustments or reclassifications necessary to ensure that the financial information you receive reflects the correct financial condition of your business. Reviews may be conducted at any time, but monthly reviews provide you with up-to-date information and feedback about your business.
Accurate record-keeping is essential to a successful business yet can also be complicated and time consuming. Alfred Jones, CPA can help you with the organization and day-to-day tasks of bookkeeping so that you can focus on your core business.
Professional representation can be vital during an audit, and our experience with tax authorities enables us to guide clients in their dealings with federal and state agencies. If you have been chosen for an audit, the professional representation you can find with our firm can put many of your worries at bay. We are ready and willing to answer any and all questions the IRS may be asking of you.
Alfred Jones, CPA's payroll services can help you reduce the time spent on administration through developing and implementing a computerized payroll system that will facilitate processing, timely payment and preparation of tax returns.
Good cash management can improve a company's liquidity, reduce costs, and increase profitability. Alfred Jones, CPA can help you maintain optimal cash flow levels by tracking sources and uses, forecasting, and budgeting accordingly. To a business entity, cash flow is something that can make or break the business' ability to survive. We can help you analyze your spending, re-balance your budget and/or debts for an optimal cash flow to support your business' success. This balance plan would be revisited if and when there were any major changes in your business structure to ensure that you are operating at an optimal level. With our help and guidance, you will always be on top of your finances and ready for the future.
Alfred Jones, CPA is a full-service accounting firm serving clients throughout the Fayetteville, NC area, dedicated to providing our clients with professional, personalized services and guidance in a wide range of financial and business needs.