Nonprofit Organizations

Nonprofit organizations face peculiar challenges that are unique to their missions. Every nonprofit competes for scarce funding resources. Donors and grantors prefer to fund successful nonprofit entities that will stand the test of time, regardless of the criticality of the cause they champion. With this in mind, I develop financial reporting models that accurately reflect the success of their missions.

I help nonprofits run their organizations in a business-like, profitable manner so that they can continue to provide services to their communities, and achieve their mission objectives. My role with each organization varies with what needs to be done. I can become the accounting department and prepare the books for the audit or review. I can assist internal accounting resources by reviewing or making entries, preparing a draft of the financial statements, and assisting with internal controls.

At A Glance

Accounting

Quickbooks®

Financial Statements

Reporting Requirements

Financial Statements

Reporting Requirements

Accounting

The heart of any financially successful business lies in its ability to deliver outstanding products or services. However, even businesses with great products or services need a strong accounting system to assist in managing the organization and maximize profits.

Accurate and timely financial information is critical to the success of every operation. It helps to manage cash flow, and is used to evaluate pricing decisions, costs, create budgets and manage resources. An effective accounting system is easy to use, and helps the owner(s) to better understand the financial performance of the business, and as a result, to make more informed financial decisions on behalf of their customers, their employees and contractors, and perhaps most importantly, themselves and their families.

I provide a variety of accounting services in the following areas:

  • Accounting software selection, implementation, and training
  • Bank and credit card account reconciliations
  • Budgets, cash flow projections and forecasts
  • Capital equipment acquisitions, exchanges and disposals
  • Chart of Accounts design
  • Employee benefit and compensation plan structuring
  • General Ledger adjusting and closing entries
  • Inventory and depreciation adjustments
  • Management reporting support
  • Payroll and sales tax preparation
  • Representation before the IRS, state or municipal tax authorities
  • Succession and estate planning
Financial Statements | TwardyCPA

Customized QuickBooks® Implementation

Most small businesses use QuickBooks® to manage their accounting and financial transactions. However, many small business owners only implement the basic features that QuickBooks® offers, such as check writing and customer invoicing.

I create customized QuickBooks® Chart of Accounts configurations to take advantage of the built-in subaccount and relationship features. This allows me to tailor QuickBooks® to more closely match each client’s particular business needs and operations, not the other way around.

I then set up various layers of “Items” that consolidate and simplify the transaction entry process. This reduces the tedium of making daily accounting entries, thus freeing up additional time that my clients can devote to more important issues, like developing new customers and making more money.

Lastly, I implement many of the more advanced features of QuickBooks®, as needed, including the creation of custom reports.

By carefully implementing each of the above steps, my clients derive the full benefit from the wealth of useful information QuickBooks® provides to help them make better business decisions, and thus manage their businesses more profitability. For example, my clients develop a better understanding as to why certain clients/jobs were more profitable, so they can replicate that success to grow their businesses. Similarly, my clients develop a better understanding as to why certain clients/jobs were not so profitable, so they can learn from those situations and either take corrective actions in the future, or decline such work.

Businessman with Papers | TwardyCPA

Financial Statements

Financial statements provide clients with vital information upon which they make critical managerial decisions, as well as meet GAAP reporting obligations. I conduct detailed financial statement analysis to help my clients identify strengths and weaknesses, interpret ratios and trends, and understand how their business is performing from a financial perspective. By taking the time to develop a thorough understanding of each client’s markets and industry, I use this information to help them achieve their business and personal goals.

My CPA licenses are unrestricted, and as such, confer on me full authority to issue independent reports of any kind on financial statements of business entities or other organizations.

Tax Planning | TwardyCPA

Reporting Requirements

All nonprofit organizations are required to file a Federal Form 990 income tax return with the IRS by the 15th day of the fifth month following the end of their fiscal year. Smaller nonprofit organizations – i.e., those whose annual revenue falls below $100,000 – may be able to file the simpler Form 990-EZ return in lieu of the more extensive Form 990 return.

Massachusetts nonprofit organizations must also file a Form PC with the Mass. Attorney General’s Office (AGO), Non-Profit Organizations / Public Charities Division.

New Hampshire nonprofit organizations must also file a Form NHCT-2A Annual Report with the Office of the N.H. Attorney General (OAG), Charitable Trusts Unit.

I would be happy to prepare the above income tax returns and State report filings on behalf of your nonprofit organization.

Additional Reporting Requirements: Mid-Sized Nonprofit Organizations

In addition to filing a Form 990 income tax return and the corresponding State return (above), both the Massachusetts AGO and the N.H. OAG require mid-sized nonprofit organizations to submit Reviewed Financial Statements accompanied by a CPA’s Review Report along with their State return filing. A “mid-sized nonprofit organization” is defined by annual gross revenue, as follows:

Massachusetts: Between $200,000 and $500,000

New Hampshire: Between $500,000 and $1,000,000

Performing Reviews of Financial Statements of nonprofit organizations is one of the specialty attestation services that TwardyCPA has provided for its clients since its inception in 2010. TwardyCPA performs Reviews of Financial Statements of nonprofit organizations in accordance with the rules and regulations set forth in the AICPA’s Statement on Standards for Accounting and Review Services (SSARS), Section 90. My CPA licenses are unrestricted, and as such, confer on me full authority to issue independent reports of any kind on financial statements of business entities or nonprofit organizations in both Massachusetts and in New Hampshire.

Additional Reporting Requirements: Large Nonprofit Organizations

In addition to filing a Form 990 income tax return and the corresponding State return (above), both the Massachusetts AGO and the N.H. OAG require large nonprofit organizations to submit Audited Financial Statements accompanied by a CPA’s Audit Report along with their State return filing. A “large nonprofit organization” is defined by annual gross revenue, as follows:

Massachusetts: Over $500,000

New Hampshire: Over $1,000,000

Because TwardyCPA is comprised of only one practicing CPA, the rules and regulations of the AICPA’s Statement on Standards for Accounting and Review Services (SSARS) prohibit TwardyCPA from performing Audits of Financial Statements of any kind.

Peer Review

As an AICPA member active in the practice of public accounting, TwardyCPA is associated with an independent CPA firm that participates in an AICPA-approved practice-monitoring program. Under this Peer Review program, this CPA firm conducted a thorough examination the Reviewed Financial Statements and related workpapers that TwardyCPA had prepared to ensure that all work was performed in accordance with the rules and regulations set forth in the AICPA’s Statement on Standards for Accounting and Review Services (SSARS), Section 90.

Firms can receive a rating of “pass", "pass with deficiency(ies)", or “fail". For the two consecutive 3-year review periods ended August 31, 2018 and 2015, TwardyCPA received a rating of “pass”.

TwardyCPA is scheduled to undergo its next Peer Review covering the 3-year review period ended August 31, 2021 during the fall of 2021.

Tax Explanation Group | TwardyCPA

"Hands down Joe Twardy is the best CPA I have worked with; I have and will continue to recommend him to everyone I know.K.D. Joslin"

K.D. Joslin

"Hands down Joe Twardy is the best CPA I have worked with..."

K.D. Joslin

"Joe has been a critical leader for my team, and I am so very grateful for it."

Mike Schell, Millis, MA

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