Audits vs. Reviews vs. Compilations
All 501(c)3 nonprofits must publicly present their financial information in the form of a 990 tax filing. But at some point, newer or smaller nonprofits also need to address the question of whether to get an audit.
Audits are an independent evaluation and presentation of a nonprofit’s financial information prepared by a Certified Public Accountant (CPA). They are a better representation of your organization’s financial situation than the 990, but they take time and money to conduct. While some nonprofits choose to or are required to get an audit, not all nonprofits need to. CPAs also offer other options for financial services that nonprofits can and often should consider before jumping straight into an audit.
This blog post outlines three options – including audits – for nonprofits that wish to verify their financials through a CPA. We cover the steps required to complete each option and how to decide which financial service is best for your organization.
