Category: Business Finances

Nonprofits are big on heart and impact. Comprised of people dedicated to solving problems where they live, nonprofits are part of the pulse of any community. But don’t let the name “nonprofit” fool you. As anyone working in nonprofit knows, it still takes funding to carry out a mission. 

Nonprofits typically acquire their funding from donors and grants who want their money to make a difference. That’s why financial transparency and compliance are critical components to nonprofit management. If you run a nonprofit or are thinking of starting one, it’s important to have systems in place that keep your finances organized, stable, and transparent. Keep reading for our roundup of best practices for nonprofit finances. 

Nonprofit Finances 101

Nonprofits pull together many different stakeholders–including donors and granting organizations–to move the needle on their mission. That’s why financial stewardship is key to the long-term sustainability of any nonprofit. Here’s our top tips for maintaining transparency, sustainability and integrity for your nonprofit. 

Create a Budget

Develop an annual operating budget that accounts for revenue and expenses. Regularly review budget and compare it to actual financial performance to stay on track.

Keep Accurate and Consistent Records

Maintain detailed, up-to-date records for all financial transactions. This includes keeping track of donations, grants, and any expenses.

Use Accounting Software

A nonprofit accounting software such as QuickBooks Nonprofit or Blackbaud is a great way to track income and expenses, generate reports, and maintain donor records. These tools are designed to handle the specific needs of nonprofit organizations, such as fund accounting and grant tracking.

Generate Regular Financial Reports

Your accounting software can help you easily create a statement of financial position (similar to a balance sheet in for-profits) that tracks your organization’s assets, liabilities, and net assets and cash flow. 

Comply with IRS Regulations

Nonprofits are required to file IRS Form 990 annually, which provides financial information to the IRS and the public. Keeping strong records will help you stay accurate and timely when filing to maintain tax-exempt status.

Conduct Regular Audits

Hire an independent auditor annually or biannually to review financial statements and internal controls. Many nonprofits are required to have external audits depending on state laws or donor/grant requirements.

Transparent Financial Communication

Publish annual financial reports and share financial information with stakeholders like board members, donors, and the public to build trust. 

When to Hire a Professional Accountant for Your Nonprofit

Running a nonprofit requires flexibility, resourcefulness and creativity. Employees often have multiple areas of expertise and wear a lot of different hats. The work is never boring, but the demands can make finding time and space for healthy financial practices a challenge. 

If you’re struggling to stay on top of your financial tasks while running your nonprofit, it might be time to reach out to a professional accounting firm for help. At Neely’s we specialize in helping individuals, small businesses and nonprofits with their accounting needs. Our friendly team of experts brings over 20 years of experience to each project and delivers professional results every time. We have a variety of solutions to work with your unique needs and budget:

• Outsourced Accounting: Get support with account reconciliation, expert advice, tax preparation, payroll, and bookkeeping all for a fixed monthly rate at a fair price.
• Bookkeeping: We can provide a full menu of services including daily transaction classification, expense tracking, payroll, bill payment and invoicing, tax planning and prep, and reporting. 
• Payroll: Let us handle your payroll so you can focus on running your nonprofit. Our Roanoke CPAs will take care of everything including, scheduled payrolls, filings, employee setup, time tracking, W2 and 1099 processing, and more.
• Business Taxes: Don’t go it alone during tax season. We offer customized and convenient services to make tax time a breeze. 

Let Neely’s support you while you cultivate a better world through your nonprofit. Give us a call or visit us today to learn more about how we can help.

If you’re a small business owner, you should be aware of critical new reporting requirements that went into effect on Jan. 1, 2024. They may require your business entity to report its beneficial ownership information to the Federal government. We’ve covered the important details you need to know. Keep reading to learn if you’re affected by the new requirements and how to fulfill them. 

New Federal Reporting Requirement for Beneficial Ownership Information (BOI)

Beginning on Jan. 1, 2024, many companies in the United States will have to report information about their beneficial owners, i.e., the individuals who ultimately own or control the company. They will have to report the information to the Financial Crimes Enforcement Network (FinCEN). FinCEN is a bureau of the U.S. Department of the Treasury. 

Do I Need to Report? 

Most businesses are small businesses that may need to file. Your company may need to report information about its beneficial owners if it is: 

1. A corporation, a limited liability company (LLC), or was otherwise created in the United States by filing a document with a secretary of state or any similar office under the law of a state or Indian tribe; or 
2. A foreign company and was registered to do business in any U.S. state or Indian tribe by such a filing.

When Do I Report? 

Reports will be accepted starting on Jan. 1, 2024. 

• If your company was created or registered before Jan. 1, 2024, you will have until Jan. 1, 2025, to report BOI. 
• If your company is created or registered on or after Jan. 1, 2024 and before Jan. 1, 2025, you must report BOI within 90 days of notice of creation or registration. 
• If your company is created or registered on or after Jan. 1, 2025 you must report BOI within 30 days of notice of creation or registration. 
• If there is any change to the required information about your company or its beneficial owners in a BOI report that your company filed, your company must file an updated BOI report no later than 30 days after the date on which the change occurred. The same 30-day timeline applies to changes in information submitted by an individual in order to obtain a FinCEN identifier. A reporting company is not required to file an updated report for any changes to previously reported personal information about a company applicant. Furthermore, if Neely’s prepares your report, the following must be reported to our office no later than 10 days after a particular change so we can file the update report within 30 days to FinCEN.

How Do I Report? 

Reporting companies will have to report beneficial ownership information electronically through FinCEN’s website: www.fincen.gov/boi. 

It’s important to note that this will be a free filing that companies can complete themselves. However, Neely’s is providing a service in which we will prepare your BOI report based on the information you provide. Please note that services for preparation of your return do not include auditing or verification of the information you provide.

What Could Happen if I Don’t Report?

There are significant penalties for missing filing deadlines, including criminal (fines and/or imprisonment) or civil (monetary) penalties. There is a $500 per day penalty, up to $10,000, and imprisonment of up to two years for the WILLFUL failure to timely file initial or updated reports. 

Taxpayer Responsibilities

Finally, we wish to emphasize that we are making you aware of these new current reporting requirements, and associated risks. Neely’s Accounting will assume no liability stemming from your neglect on not filing this BOI report. If you choose to engage BOI services from Neely’s our firm assumes no liability stemming from your neglect on not providing applicable information as detailed above for filing the BOI report. 

For more information about BOI reporting, and our reporting preparation services, please contact us or stop by our office.

At Neely’s Accounting, we understand the critical role an efficient accounting system plays in the success of your business. It’s the financial heartbeat, influencing decisions and strategy while ensuring precision and compliance. To help you navigate the maze of developing and improving your accounting system, we’ve compiled a step-by-step guide with an insider’s perspective.

1. Identify Your Needs: We’ve worked with a diverse range of businesses, and if there’s one thing we’ve learned, it’s that no two are the same. Your accounting system should reflect the unique nature of your operations. From simple expense tracking to full-fledged financial reporting, determine what you need from your system. 

2. Selecting the Right Software: The advent of accounting software has streamlined financial management. In our experience, consider scalability, ease of use, integration capabilities, and security when selecting software. We often recommend solutions like QuickBooks, Sage, and Zoho Books to our clients.

3. Customization is Key: A one-size-fits-all approach seldom works for accounting systems. Tailor your system to match your operations. Our friendly, Roanoke CPAs can assist you in customizing your system, from setting up automated invoice reminders to report generation.

4. Invest in Training: As CPAs, we know the difference comprehensive training can make. Ensure your team knows how to use your system effectively, from its basic functionality to troubleshooting.

5. Implement Regular Auditing: An essential step often overlooked is regular auditing. Internal audits ensure data accuracy and system efficiency, preventing minor issues from escalating. Neely’s offers comprehensive auditing services to provide peace of mind.

6. Updates and Upgrades: Just as tax laws and financial regulations evolve, so do accounting systems. Staying updated with the latest features and upgrades will ensure you’re utilizing the most efficient tools. 

7. Consult with Professionals: A professional perspective can prove invaluable. As Roanoke’s trusted CPA firm, we can provide expert advice to ensure your system aligns with financial regulations and mitigates potential risks.

Streamline Your Accounting System with Neely’s

Developing and refining an accounting system is not a one-and-done process. It’s a journey that involves continuous learning and adaptation. By following these steps, you’ll not only create a system that caters to your current needs, but also one that’s ready to grow with you. Reach out to us today, and let’s pave the path to financial excellence together.

Hiring a new employee takes a lot of thought and effort, and for good reason. Your new employee may have access to sensitive company information or finances so it’s essential to quickly establish trust. In most cases, that trust results in a positive, productive working relationship. However, sometimes the worst can happen, and your business becomes a victim of occupational fraud.

Although it is unlikely, preparedness is one of the best ways to identify and prevent someone stealing from your company. Having solid accounting services can help protect you if you become the victim of occupational fraud.

What is Occupational Fraud?

The Association of Certified Fraud Examiners (ACFE) defines occupational fraud as “the use of a person’s occupation for self-enrichment through deliberate misappropriation and misuse of the employing organization’s asset and resources.” In other words, if an employee steals from their company, they are committing occupational fraud.  While this can happen in a variety of ways, there are three common types of fraud to look out for. 

• Asset misappropriation is the most common form of occupational fraud, occurring in about 89% of cases. This happens when employees steal equipment or cash, or present inflated expense reports and bills to pocket the excess. 
• Corruption occurs when an employee uses their influence inappropriately for personal gain. It often takes the form of bribery or extortion and is most frequently undertaken by senior employees.
• Financial statement fraud happens rarely but is the costliest. Perpetrators inflate revenues and minimize losses to present an image of success to gain performance raises or new investors. 

Who is at Risk for Occupational Fraud?

Any business can fall prey to occupational fraud, but those without strong accounting services and regular audits are particularly at risk. While it can happen anywhere, certain conditions make it more likely that occupational fraud will occur.

• Pressure either on the job or at home can contribute to an employee’s decision to commit fraud. If an employee feels pressure to perform or to make payments for a lifestyle beyond their means, it may drive them to commit fraud. 
• Access to sensitive information and lack of accountability creates opportunity. If your business has lax accounting, then it becomes easier for an employee to take advantage. 
• Frustration on the job can lead to an employee that rationalizes theft. Maybe the employee feels they deserve a raise, or they don’t agree with certain business practices and “compensate” themselves by stealing from the business. 

How Can I Protect My Protect My Business from Occupational Fraud?

The best way to protect your business from occupational fraud is through a culture of accountability and reliable accounting services. Developing effective internal financial controls like accounting audits ensures you have the information you need to identify or even prevent fraud. 

• Proper employee management goes a long way to preventing fraud. Creating a culture of transparency and accountability as well as ensuring that your employees are satisfied isn’t easy but often leads to greater trust and productivity. 
• Clear boundaries and accountability are critical tools for safeguarding against fraud. Assigning clear ownership and oversight of financial tasks makes it difficult for fraud to happen and protects against event accidental missteps. 
• Strong accounting services and regular audits give you a clear overview of your financial situation, making it easy to spot discrepancies and issues.

Contact Neely’s Accounting to Learn More

You don’t have to go it alone when it comes to developing a fraud protection plan. Since 2007, we’ve been helping Roanoke businesses stay financially healthy and secure. Contact us today to learn more about how we can provide accounting services that make sense for your business. 

Owning a small business isn’t for the faint of heart. Being an entrepreneur takes courage, vision, and a strong work ethic. One of your primary goals is likely to make money and grow your company. But as your company grows, so do the demands on your time, attention, and energy. You might find yourself barely able to keep up with the day-to-day requirements much less have time for strategic planning and growth.

If this sounds like you, it’s time to hire an accountant. Many small business owners avoid hiring help, because they’re worried that they might not be able to afford the expense. But hiring an accountant is an investment toward the financial health of your business. Plus, you’ll add time back into your schedule so you can work on your business, not just in it.

Here are a few ways an accountant can help you reach business goals:

Provide Virtual CFO Services

You can rely on your accountant year-round, not just at tax time. Hiring an accountant means having access valuable professional advice and support. Essentially, your accountant can function as a CFO for your company, without the potentially prohibitive expense of a salary and benefits.

Depending on your needs, an accountant can track your financials and meet with you regularly to provide insight into the financial health of your business. Having expert guidance can help you prepare for tax season and make strategic decisions.

Improve Budget and Cashflow

Outsourcing the effort of tracking your income and expenditures can make a big impact on your business. Understanding trends in your cashflow can help you make informed predictions about the future financial health of your business. Having this information at your fingertips can help you make solid decisions about big purchases while saving you time.

Prepare And File Taxes

Of course, hiring an accountant can help you prepare and file your tax returns. Never worry about filing incorrectly or missing important deductions. With a professional accountant, you can have peace of mind that your taxes will be done right.

Neely’s Accounting Services provides expert tax preparation and accounting in Roanoke, VA.  Our clients have trusted us with their business management, personal income tax, and outsourced accounting needs since 2007. We’re proud to offer a full range of professional products at a fair price without sacrificing the individual attention you deserve. Our friendly, dedicated advisors are always ready to help you with personalized solutions that meet your needs.

Let us take the stress out of running your business and filing income taxes. Contact us or visit today.

If you’re a small business owner, perhaps you know the feeling: the creeping sense of dread that grows as you inch closer and closer to payroll processing time each month. Processing your payroll involves tracking and re-tracking details, keeping up with evolving compliance, and ensuring accurate payroll tax filings. You know that mistakes can be costly, as even inadvertent errors can lead to steep fines at tax time. Maybe you delay starting the task which leads to frantic late-night accounting work as you race to pay your employees on time. Talk about stressful!

Plus, each minute you’re handling payroll means a minute not spent with employees, customers, or creative work. Payroll is by nature time-consuming. As a business owner your time is precious, and it can feel like there’s not enough of it to go around. It’s no wonder that small business owners struggle with payroll procrastination and dread. If this sounds like you, consider these tips to conquer payroll procrastination once and for all.

Identify Your Primary Pain Points

Take 10 minutes to brainstorm the top three obstacles you face with payroll and write them down. Maybe it’s your manual payroll process, or perhaps it’s the endless salary calculations. Maybe you’re dreaming of having some time back in your schedule or you’d just like a professional advisor to call with questions. Getting clear about your payroll needs is the first step to making payroll more efficient.

Define Your Budget

If you’re managing payroll by yourself, it’s likely because of budget constraints. It’s a tension many small business owners manage, but don’t forget that your time is money too. Hiring a professional can seem like an extravagant expense but consider the ways your business could grow if you had more hours free in the month. Determining a workable budget will help you choose the right level of support for your needs.

Determine What Level of Support You Need

Now you have all the information you need to make a confident decision about hiring professional support. Maybe you’re not ready to hand over the reins of your payroll, but you’re interested in phone and email support from a trusted expert. Perhaps having your payroll workflow analyzed and streamlined could save you hours each month. Lastly, many accounting firms offer fully outsourced payroll services, giving you the ultimate freedom and peace of mind. Call your local accounting service to find out what’s best for you.

Let Us Help!

Need help with your payroll? Neely’s Accounting has been supporting Roanoke, VA small business with their payroll needs since 2007. Our clients love us because we offer big-city services with hometown values. Contact us or visit today.