If your not-for-profit periodically prepares internal financial statements for your board, you may have noticed that your auditors propose financial adjustments to these interim statements at year end. Why do auditors do this? Generally, it reflects differences due to cash basis vs. accrual basis financial statements. But you can help minimize the need for such financial adjustments.

man in a suit looking at graphs and stats on a tablet; image used for blog post about not-for-profits minimizing financial adjustments

Here’s how.


Continue Reading How to Minimize Needing Year-End Financial Adjustments

Jen: This is The PKF Texas – Entrepreneur’s Playbook®. I’m Jen Lemanski, and I’m back again with Carlos Gomez, an Audit Manager and one of the faces of the PKF Texas Contract Compliance services team. Carlos, welcome back.

Carlos: Thanks, Jen.

Jen: I’ve heard a little bit of buzz in the marketplace about royalty relief. What is it? And what do our clients need to know?


Continue Reading What You Need to Know About Royalty Relief

Jen: This is The PKF Texas – Entrepreneur’s Playbook®. I’m Jen Lemanski and I’m here today with Carlos Gomez, an Audit Manager and one of the faces of our PKF Texas Contract Compliance Services team. Carlos, welcome back to the playbook.

Carlos: Hi, Jen.

Jen: So, previously we’ve talked about licensing agreements. Can you walk me and our viewers through the key sections of licensing agreements?


Continue Reading Key Sections of Licensing Agreements

Jen: This is The PKF Texas – Entrepreneur’s Playbook®. I’m Jen Lemanski, and I’m back again with Nicole Riley, an Audit Director and one of the faces of the PKF Texas not-for-profit team. Nicole, welcome back to the playbook.

Nicole: Thanks. Thanks for having me.

Jen: There’s different departments in a not-for-profit organization. Two of the main ones are finance and development. Why is it important for those two to be collaborative?


Continue Reading The Importance of Finance and Development Collaboration

Jen: This is The PKF Texas – Entrepreneur’s Playbook®. I’m Jen Lemanski, and I’m back again with Matt Goldston, a director in our entrepreneurial advisory services group, as well as one of the faces of the PKF Texas bank advisory team. Matt, welcome back to the playbook.

Matt: Thank you, Jen. I appreciate it.

Jen: So, last time you were here we talked a little bit about, you know, being on the CFO side and what banks are requesting for field examinations. Let’s flip the switch a little bit. What types of services are banks requesting that we work with them on?


Continue Reading What to Know About Bank Advisory Services

Jen: This is The PKF Texas – Entrepreneur’s Playbook®. I’m Jen Lemanski, and I’m back again with Matt Goldston, one of our directors of our Entrepreneurial Advisory Services team, and one of the faces of the PKF Texas Bank Advisory Services team. Matt, welcome back to The Playbook.

Matt: Thank you, Jen. I appreciate it.

Jen: So, we’ve had some conversations – can you tell me a little bit, what is a bank field audit?

Matt: Certainly. A field audit or field examination is typically engaged by the bank, where we’ll go in and we’ll look at their client, we’ll review their banking agreement, we’ll look at the underlying assets that support balances that they’re reporting to the bank. So, it’s basically a third-party review in depth of their reported balances to a bank.

Jen: And what types of clients actually need these types of examinations?


Continue Reading What is a Bank Field Examination?

Jen: This is The PKF Texas – Entrepreneur’s Playbook®. I’m Jen Lemanski, and I’m back once again with Emily Smikal, a tax director and one of the faces of our PKF Texas not-for-profit team. Emily, welcome back to the Playbook.

Emily: Thanks for having me again.

Jen: So, I know for profit organizations can be audited by the IRS. I’m assuming not-for-profit organizations can also be audited for the IRS. Are there any steps that they can take to maybe avoid an audit?

Emily: Yes, not-for-profit entities can be audited, and so, it’s important to just understand how the IRS selects which organizations they’re going to audit so you can be somewhat prepared for that. So, first of all, you can’t fully know; they will randomly select organizations to audit, but there are some common triggers to just be aware of.

Jen: What are those triggers?


Continue Reading How Your NFP Can Avoid Pitfalls of an IRS Audit

Thousands of not-for-profit organizations fall victim to embezzlement schemes every year — some even losing millions of dollars. But losses go beyond actual dollar amounts. The hit to a group’s reputation may scare off donors, grantmakers and other supporters. However, with the right response, not-for-profits can bounce back from fraud.

dollar bills laid out; image used for blog post about not-for-profits recovering from fraud

Here’s how.


Continue Reading How Your Not-for-Profit Can Recover from Fraud

Many organizations get stuck in procedural ruts because it’s easier in the short term to continue doing things the way they’ve always been done. But it generally pays to regularly review your not-for-profit’s accounting function for inefficiencies and oversight gaps.

a woman typing on a laptop with data and graphs on screen; image used for blog post about not-for-profits reviewing accounting function

You might plan to conduct a review once a year or perform an assessment whenever significant changes, such as staff turnover or the introduction of new software, warrants one.


Continue Reading Is it Time to Review Your Not-for-Profit’s Accounting?

Jen: This is The PKF Texas – Entrepreneur’s Playbook®. I’m Jen Lemanski, and I’m back again with Nicole Riley, a Director on our audit team and one of the faces of PKF Texas’ not-for-profit team. Nicole, welcome back to The Playbook.

Nicole: Thanks. Glad to be here.

Jen: So, audits. You know, it’s the beginning of the year, people are starting to get things pulled together for their audit process. What could a not-for-profit organization do to make that process smoother when it comes time?


Continue Reading Three Tips for a Smooth Audit