Frequently asked questions.

1. Why should our nonprofit outsource to 501 CPAs instead of hiring a full-time accountant?

Answer: Most nonprofits find that hiring a dedicated Full-Time Equivalent (FTE) comes with high overhead, including salary, benefits, and training. At 501 CPAs, we provide an entire accounting and finance team—from bookkeepers to CFO-level advisors—for a fraction of the cost of a single hire. This model gives you access to a broader range of expertise and ensures internal controls are in place, which is often difficult to achieve with just one staff member.

2. What specific nonprofit accounting services does 501 CPAs provide?

Answer: We function as your organization’s complete internal finance department. Our comprehensive suite of services includes:

  • Daily Operations: Managing Accounts Payable (AP), Accounts Receivable (AR), and monthly bank reconciliations.

  • Compliance & Tax: Preparation of IRS Form 990 and management of Unrelated Business Income Tax (UBIT).

  • Strategic Advisory: Financial reporting, board-ready presentations, budgeting, and multi-year forecasting.

  • Audit Readiness: Ensuring your books are clean and GAAP-compliant year-round.This is a frequently asked question?

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3. Does 501 CPAs specialize in IRS Form 990 and UBIT compliance?

Answer: Yes. Unlike generalist firms, 501 CPAs focuses exclusively on the nonprofit sector. We are experts in the complexities of Form 990 filings and identifying Unrelated Business Income Tax (UBIT) triggers. We ensure your tax-exempt status is protected through meticulous compliance and proactive tax planning tailored to the unique regulations governing 501(c)(3) and other nonprofit entities.This is a frequently asked question?

It all begins with an idea. Maybe you want to launch a business. Maybe you want to turn a hobby into something more. Or maybe you have a creative project to share with the world. Whatever it is, the way you tell your story online can make all the difference.

4. Can you help our nonprofit with board reporting and financial transparency?

Answer: Absolutely. We understand that nonprofit boards require clear, high-level insights to make informed decisions. 501 CPAs goes beyond basic bookkeeping to provide strategic board reporting. We translate complex financial data into easy-to-digest dashboards and reports, focusing on the metrics that matter most to your stakeholders, such as program efficiency ratios and cash flow sustainability.This is a frequently asked question?

5. How does a "fractional finance team" work for a nonprofit?

Answer: Our "fractional" model means you get the right level of talent for the right task. You don’t need to pay a CFO salary for data entry, and you shouldn’t rely on a bookkeeper for strategic forecasting. With 501 CPAs, you get a scalable finance team that handles everything from daily bookkeeping to executive-level CFO advisory, allowing your leadership to focus entirely on your mission.

6. Can 501 CPAs manage our nonprofit’s budgeting and forecasting?

Answer: Yes. We take a proactive approach to your financial health. We assist nonprofit leaders in developing annual budgets and rolling financial forecasts. By analyzing your historical data and current funding trends, we help you anticipate cash flow needs and plan for future growth, ensuring your organization remains resilient in changing economic climates.

7. Does 501 CPAs handle grant tracking and restricted fund accounting?

Answer: Yes. Proper fund accounting is critical for nonprofits. We specialize in tracking restricted and unrestricted funds, ensuring that every dollar is allocated correctly according to grant requirements. Our team ensures your financial statements clearly reflect your stewardship of donor contributions, which is essential for maintaining trust and securing future funding.

8. Is 501 CPAs a "nonprofit-only" firm?

Answer: Yes. Nonprofits are not just a "side niche" for us—they are all we do. By focusing 100% of our resources on the nonprofit sector, 501 CPAs stays at the forefront of evolving nonprofit accounting standards, IRS regulations, and best practices. This specialization allows us to provide a level of expertise that generalist CPA firms simply cannot match.