Absolutely! Even if you have an accounting background or have started a business before, it is essential to discuss accounting systems, budgets, entity structure and much more with a CPA prior to starting a business. Without seeking advice from a CPA, you could be making decisions that could end up hurting you financially or legally.

There are four main types of financial statement services we provide:

• Preparation: A preparation is intended for business owners’ use only to manage the business. For financial statement preparation services, Rubino will not verify the accuracy or completeness of the information and we are not required to issue a formal report on the financial statements.

• Compilation: A compilation is intended for use by outside parties who may appreciate the business’ association with a CPA without requiring a level of assurance on the accuracy of the financial statements. For compilation services, Rubino is required to read the financial statements in light of the financial reporting framework being used and consider whether the financial statements appear appropriate in the form and are free from obvious misstatements.

• Review: A review is intended for use by outside parties with limited assurance on the accuracy of financial statements. A review is appropriate as an organization grows and is seeking larger and more complex levels of financing and credit. During a review, Rubino will perform analytical procedures, inquiries, and other procedures to obtain “limited assurance” on the financial statements and review is intended to provide a user with a level of comfort on their accuracy.
• Audit: An audit is intended to provide outside parties with a higher level of comfort on the accuracy of the financial statements. An audit is typically appropriate and often required when an organization is seeking complex or high levels of financing and credit. In an audit, Rubino is required to obtain an understanding of the organization’s internal control and assess fraud risk. In addition, Rubino is also required to corroborate the amounts and disclosures included in the financial statements by obtaining audit evidence through inquiry, physical inspection, observation, third-party confirmations, examination, analytical procedures, and other procedures.

We recommend keeping all tax returns and support for the income and deductions claimed on those returns for 7 years after the date the return was filed.

Nonprofit organizations, and in some cases for-profit organizations, are required to have a Single audit performed under the Uniform Guidance or a Uniform Guidance Audit if they incur Federal expenditures of $750,000 or more in a fiscal year.

Yes, in certain cases, commercial or for-profit entities may be subject to the audit requirements of the Uniform Guidance. For instance, HHS regulations state the following:

Recipients and subrecipients that are commercial organizations  and incur more than 750,000 of Federal expenditures under have two options regarding audits:

1.  A financial related audit (as defined in the Government Auditing Standards, GPO Stock #020-000-00-265-4) of a particular award in accordance with Government Auditing Standards, in those cases where the recipient receives awards under only one HHS program; or, if awards are received under multiple HHS programs, a financial related audit of all HHS awards in accordance with Government Auditing Standards; or
2.  An audit that meets the requirements contained in this subpart (45 CFR Part 75.501)