All posts by Pam Williams

SSARS 21: Statement on Standards for Accounting and Review Services: Clarification and Recodification

by Lee Byrd

Representing the most significant changes to the compilation and review literature in decades, the AICPA Accounting and Review Services Committee recently issued Statement on Standards for Accounting and Review Services (SSARS) No. 21. The guidance aids in drawing a definitive line between preparation and reporting services and is composed of four sections as follows:

  • Section 60 – General Principles for Engagements Performed in Accordance With Statements on Standards for Accounting and Review Services, provides a foundation for the other three sections and guides professionals on their responsibilities related to engagements performed in accordance with SSARS.
  • Section 70 – Preparation of Financial Statements, applies when an accountant is engaged to prepare financial statements but is not engaged to perform an audit, review or a compliation on those financial statements. Professional judgment should be used in determining the type of engagement requested by the client (i.e. whether the CPA is engaged to prepare financial statements or simply assist in their preparation). A report is not required for a preparation engagement but the CPA should include a legend on each page of the financial statements stating, “no assurance is provided.”
  • Section 80 – Compilation Engagements, applies when an accountant is engaged to perform a compilation engagement. The guidance provides new compilation report language, distinguishing this report from an assurance engagement report for audit or review services. CPAs may add additional paragraphs for explanatory purposes.
  • Section 90 – Review of Financial Statements, applies when an accountant is engaged to perform a review of financial statements. The accountants’ review report has been updated to require the use of headings in the report and the name of the city and state of the CPA’s issuing office.

Successful business group.CPAs are required to begin using SSARS 21 for financial statements with periods ending December 15, 2015 and thereafter; however, the standard allows for early implementation. The standard also requires a signed engagement letter for all SSARSs engagements, signed by both the CPA and management or those charged with governance. Additionally, while audit, review and compilation engagements require participation in a peer review program, preparation services do not fall within any of the aforementioned categories and therefore, are not subject to peer review.

Langdon & Company LLP‘s accountants are very familiar with this new standard and would be happy to answer any questions you may have.  Please contact our office for additional information.

Lee Byrd ([email protected]) is an Audit Manager at our Firm and has over 7 years of experience with a variety of clients.

Spring Cleaning: Document Retention Policies for Non-Profits

by Brittany Powell spring-cleaning-office

Determining what documents and files you need to keep can be a daunting task and all too often turns into a case of “I’ll keep this…just in case.”  Establishing a formal document retention and destruction policy for your non-profit organization can help prevent clutter from piles of unneeded documents.  In fact, a document retention policy is one of several policies that the IRS Form 990 asks specifically if a nonprofit organization has.

The IRS Form 990 instructions define a document retention and destruction policy as a policy that “identifies the record retention responsibilities of staff, volunteers, board members, and outsiders for maintaining and documenting the storage and destruction of the organization’s documents and records.”  As the National Council of Nonprofits points out in its article, “Document Retention Policies for Nonprofits,” a written document retention policy provides consistency in the document retention/destruction habits of both staff and volunteers.

So, as your organization is spring cleaning, what documents should you keep and what can be tossed?  The following categories are derived from the AICPA’s sample document retention policy and provide a guideline for how long certain documents should be kept.

Documents that should be kept permanently:

–          Audit reports

–          Correspondence regarding legal and important matters

–          Deeds, mortgages, and bills of sale

–          Determination letter from the IRS

–          Tax returns

–          Articles of Incorporation, Bylaws, etc.

–          Minutes of board meetings and resolutions made by the board

–          Retirement and pension records

–          Trademark registrations and copyrights

Documents that should be kept for 7 years:

–          Expired contracts, mortgages, notes, and leases

–          Payroll records and summaries

–          Personnel files for terminated employees

–          Timesheets

–          Withholding tax statements

–          Invoices (to customers and from vendors)

Documents that should be kept for 2-3 years:

–          Bank reconciliations and statements

–          General correspondence

–          Duplicate deposit slips

–          Employment applications

–          Inventory records

–          Correspondence with customers and vendors

These guidelines can help your organization begin establishing its own document retention policy and guidelines.  However, as we become a more technologically-driven society, it is important to be consider documents stored in the cloud or on a server and to have a back-up plan in place for your electronic documents.  Additionally, the National Council of Nonprofits points out in its article that organizations should give consideration to email records and how they fit into the procedures defined in the document retention policy.

If you have additional questions or would like additional information, please contact our office.

Brittany Powell ([email protected]) is an audit senior at Langdon & Company LLP and has experience with a broad range of non-profit clients.

The Interaction of Pell Grants and Tax Credits

by Rebecca Lunnpell grant

Federally funded Pell Grants assist millions of students annually. However, for students with these scholarships, the process of claiming tax credits is complex and often confusing. As a result, students with the greatest financial need may be foregoing additional tax benefits available.

Based on an IRS publication (see link below), under current law a Pell Grant student can choose to allocate his or her Pell Grant funds either to qualified tuition and related expenses (QTRE) or to living expenses (up to the amount of actual living expenses), which constitutes taxable income. Most students and parents do not understand this option, so often families allocate all QTRE to the Pell Grant funds, leaving little or no QTRE to allocate to an educational tax credit.

For 2014, the American Opportunity Tax Credit (AOTC) provides a 100% credit for the first $2,000 of QTRE and a 25% credit for the next $2,000, for a total credit up to $2,500. As noted in the IRS publication, if a student’s QTRE exceeds scholarships by $4,000, the student would still qualify for the maximum AOTC credit. However, if the QTRE exceeds scholarships by less than $4,000, the student may benefit from including some of the Pell Grant in taxable income in order to claim a larger AOTC. It is important to note that any scholarship that is allocated to living expenses must be included in taxable income on the student’s (not the parent’s) tax return.

If you need additional assistance in understanding how to obtain the maximum tax benefit with a Pell Grant scholarship, the tax department at Langdon & Company LLP is pleased to assist.

Please click here for detailed examples of the interaction of Pell Grants and tax credits.

Rebecca Lunn ([email protected]) is a Senior in our Audit Department working primarily with the non profit, and health care industries.

college diploma

ABLE (Achieving a Better Life Experience) Act – A new way to save for children with disabilities

by Meagan Bulloch

The ABLE Act amends Section 529 of the IRS Code of 1986 to create tax-advantage savings accounts for individuals with disabilities.  The ABLE Act will provide individuals with disabilities the same types of flexible savings tools that all other American have through college savings accounts, health savings accounts and individual retirement accounts.  Most importantly this Act will prevent money saved through 529-ABLE accounts from counting against an individual’s eligibility for federal benefits programs.

As of December 19, 2014 this was signed into law by President Barack Obama. o-SAVINGS-ACCOUNT-facebook

What you should know (Adapted from NDSS):

  1. 529-ABLE accounts are “tax-advantage” savings accounts for individuals with disabilities and their families.  Income earned by these accounts will not be taxed.  Also the money will not be considered an asset when determining eligibility for government supported benefits.
  2. Who is eligible – Any individual with significant disabilities with an age of onset before 26 years of age is eligible.  Eligible individuals can be over the age of 26, but must have documentation of disability that indicates age of onset before the age of 26.  
  3. How much money can be saved – Under current tax law, an individual can contribute a maximum of $14,000 into an ABLE account and not be subject to gift taxes.  The total limit over time that can be made into an ABLE account will be subject to the individual state and their limit for education-related 529 savings accounts.  The first $100,000 in ABLE accounts will be exempt from the SSI $2,000 individual resource limit.  If the ABLE account exceeds $100,000, the beneficiary would be suspended from eligibility for SSI benefits, but would continue to be eligible for Medicaid.    
  4. What expenses qualify – A “qualified disability expense” is considered an expense incurred as a result of the beneficiary living with their disability.  These would include education, housing, transportation, employment training and support, assistive technology, personal support services, health care expenses, financial management and administrative services and other expenses which will be developed in 2015 by the Treasury Department.   
  5. Can I have more than one ABLE account – No, the Act limits the opportunity to one ABLE account per eligible individual. 
  6. How is an ABLE account different from other options – ABLE accounts allow more choice and control for the beneficiary and their families.  The cost of opening an account will be considerably less than setting up either a Special Needs Trust or Pooled Income Trust.  The ABLE account will also be less complicated to set up and owners will have the ability to control their funds.  This new approach also offers individuals living with a disability the ability to work and contribute to their own support and save for their own future with fear of losing necessary support and services.

Meagan Bulloch ([email protected]) is an audit manager at Langdon & Company LLP focused primarily on non-profit clients.

 

NC 2014 Tax Law Changes

by Leonora Bowman

Yea!  North Carolina reduced the individual income tax rate beginning in 2014.  That means that I will pay less tax to NC when I file my 2014 Form D-400, right?  Like all tax questions the answer is “It depends.” NC flag

The following was taken from the North Carolina Department of Revenue’s Instructions for Individual Returns Form D-400:

What’s New : 

For information about any additional changes to the 2014 tax law or any other developments affecting Form D-400 or its instructions, go to www.dornc.com.

Session Law 2013-316, House Bill 998, An Act to Simplify the North Carolina Tax Structure and to Reduce Individual and Business Tax Rates, was signed into law on July 23, 2013. The individual income tax rate was reduced, the N.C. standard deduction was increased, and many deductions and tax credits are no longer available for tax years beginning on or after January 1, 2014.

Change in tax rate.

The individual income tax rate is reduced to a flat 5.8 percent for tax years beginning on or after January 1, 2014 and to 5.75 percent for tax years beginning on or after January 1, 2015. N.C.

Standard Deduction or N.C. Itemized Deductions. You may continue to claim either the N.C. standard deduction or N.C. itemized deductions, however, both have changed. (See Page 8)

• N.C. standard deduction has increased for each filing status,

• No additional standard deduction is available for taxpayers age 65 or older, or blind.

• N.C. itemized deductions are no longer identical to federal itemized deductions and are subject    to certain limitations.

N.C. Itemized Deductions.

• Qualified home mortgage interest and real estate property taxes are allowed as deductions. The sum of those deductions cannot exceed $20,000,

• Charitable contributions allowed as a deduction on the federal return are allowed without limitation.

 Deduction for Other Retirement Benefits.

There are no longer deductions available to certain taxpayers for up to $4,000 for federal, state, or local government retirement benefits or up to $2,000 for private retirement benefits.

Deduction for Net Business Income that is Not Considered Passive Income.

There is no longer a deduction available to certain taxpayers for up to $50,000 of net business income included in federal adjusted gross income.

Deduction for Contributions to N.C. College Savings Program.

There is no longer a deduction for contributions made during the taxable year to an account in the Parental Savings Trust Fund of the State Education Assistance Authority (North Carolina’s National College Savings Program – N.C. 529 Plan).

N.C. Standard Deduction Amounts for Most Taxpayers:

Filing Status                                                    Standard Deduction

Single                                                                           $ 7,500

Married Filing Jointly/Qualifying Widow(er)                 $15,000

Married Filing Separately                                             $ 7,500

Head of Household                                                     $12,000

N.C. Personal Exemption Allowance.

You may no longer claim a personal exemption for yourself, your spouse, children, or any other qualifying dependents.

Credit for Children.

Amounts are increased from $100 to $125 per qualifying child for some taxpayers. If you are allowed a federal child tax credit under section 24 of the Code you are allowed a tax credit for each dependent child for whom a federal credit was allowed. The credit amount is based on your filing status and adjusted gross income, as calculated under the Code.

Child and Dependent Care Credit.

North Carolina no longer allows a tax credit for child and dependent care expenses.

Earned Income Tax Credit.

North Carolina no longer has a State earned income tax credit.

N.C. Education Endowment Fund:

Contribute to the N.C. Education Endowment Fund by making a contribution or designating some or all of your overpayment to the Fund.

nc-general-assembly-entrance-304xx2100-3150-0-3Analysis of these changes:

So who will pay higher taxes?  “It depends.”  Families who could pay more are as follows:

Retirees can no longer deduct a portion of their retirement benefits.

Small business owners who were previously allowed to deduct the first $50,000 of self-employment income from their NC taxable income.  For a married couple, who both have self-employment income that equals or exceeds $50,000, they will now be taxed on an additional $100,000 previously excluded.  The tax on that is $5,800.  Whether their NC tax will be higher or lower depends on their other taxable income and the other changes in deductions allowed.

Young families will no longer receive a child and dependent care credit or an earned income tax credit.

All wage earners in NC were required to resubmit withholding allowance forms to their employers in January, 2014 which would adjust the amount of state income tax withholdings typically taken from their pay.  The intent by the state Department of Revenue was that the new allowances would better align with the law changes, however each individual taxpayer’s circumstances is different.  NC taxpayers will have a better idea of how their state income tax withholdings match their actual income tax liability with the filing of their 2014 NC Individual Income Tax Returns.  Should adjustments be necessary to increase state income tax withholdings in 2015, revised withholding allowance requests may be filed by employees with their employers at any time or alternatively quarterly estimated tax payments may be scheduled.

 

The Tax Team at Langdon & Company LLP will be happy to discuss these NC tax law changes with you.  Please contact our office if you have additional questions.

Leonora “Lee” Bowman ([email protected]) is a Manager in our Accounting Services practice.  She has over 25 years of experience in taxation and also specializes in multi-dimensional corporate accounting across various states.

The “Legacy Drawer”

by Brittany Spragins

While it is extremely hard to think about, someday you will pass away.  What will happen to your spouse, kids, grandkids, and other loved ones?  Have you heard of the “Legacy Drawer?”  Here is what it contains: 

  • Cover Letter – this will explain the purpose and organizational system of the drawer.
  • A Last Will and Testament (a “will”) – Make sure to have an updated copy of your will.  Without one, the government divides your assets as they see fit; your own wishes are irrelevant.  If you have children, the government also picks their guardian.
  • Make sure that the will is updated after major life events such as marriage or divorce, birth or adoption of a child, or moving to a new state.
  • Make sure that this contains the names of the executor and Power of Attorney for the estate.
  • Financial Information – anything involving money
  • Include account names, numbers, and approximate balances
  • Credit cards accounts and online login information
  • Loan Documents
  • Safe Deposit Box location and information
  • Insurance Provider Information – include a summary page of all types of insurance
  • Policy type
  • Policy Numbers
  • Provider Contact Information
  • Funeral Instructions – Include as much as you can to ease the burden on your family.  Your family will already be grieving your loss, so if you have songs or locations picked out, let them know.
  • Legal Documents – copies of birth certificate, marriage license, car titles, house deeds, social security card, etc. If you think it may be needed to help settle your estate, and then include it in here.
  • A letter to your loved ones- They will be missing you and a personalized letter from you reminding them of your love will be a special gift for them.  You can leave remaining pearls of wisdom, or just the opportunity for them to hear your words in a lasting legacy.

Update the information periodically, if you get a new bank account or pay off a loan, then just add or remove the file accordingly.

I realize that there are a lot of items to include, and it will take some time to locate and organize these, but stick to it.  If it would take time to do now, imagine the stress on your loved ones if they are doing it because you are gone.  This is one way that you can ease the burden on your family and remind them how much you love them.
Outline provided by Dave Ramsey http://www.daveramsey.com/article/legacy-drawer-keep-your-family-prepared/lifeandmoney_relationshipsandmoney/.
Brittany Spragins ([email protected]) is a staff accountant with Langdon & Company LLP and works with our healthcare consulting and tax departments.

Premium Tax Credit Reporting

by Kendall Tyson

Beginning in 2014, individuals and families with low or moderate income could purchase health insurance through the Health Insurance Marketplace, also known as the Exchange.  The premium tax credit is an advanceable, refundable tax credit designed to help those individuals and families.  The credit could be paid in advance to insurance companies to lower the monthly premiums or the credit could be claimed with the individual tax return.  If the credit was paid in advance, individuals must reconcile the amount paid in advance with the actual credit computed on the individual’s tax return.

Reporting and Claiming:

Will I have to file a federal income tax return to get the premium tax credit?  

For any tax year, if you receive advance credit payments in any amount or if you plan to claim the premium tax credit, you must file a Form 8962, Premium Tax Credit (PTC) and attach it to your federal income tax return for that year. If you receive any advance credit payments, you will use your return to reconcile the difference between the advance credit payments made on your behalf and the actual amount of the credit that you may claim. This filing requirement applies whether or not you would otherwise be required to file a return. If you are married and you file your tax return using the filing status Married Filing Separately, you will not be eligible for the premium tax credit unless you meet the criteria in Notice 2014-23, which allows certain victims of domestic abuse to claim the premium tax credit using the Married Filing Separately filing status for the 2014 calendar year.

Will I be eligible for the premium tax credit if I’m married but I file my tax return using the filing status Married Filing Separately?

If you are married and you file your tax return using the filing status Married Filing Separately, you will not be eligible for the premium tax credit unless you meet the criteria in section 1.36B-2T(b)(2) of the Temporary Income Tax Regulations, which allows certain victims of domestic abuse and spousal abandonment to claim the premium tax credit using the Married Filing Separately filing status.  Taxpayers may claim this relief from the joint filing requirement for no more than three consecutive years.

Note:  Generally, a married taxpayer who lives apart from his or her spouse for the last six months of the taxable year is considered unmarried if he or she files a separate return, maintains as the taxpayer’s home a household that is also the main home of a dependent child for more than half the year, and furnishes over half the cost of the household during the taxable year.

For purposes of the relief from the joint filing requirement for certain victims of domestic abuse and spousal abandonment, how are domestic abuse and spousal abandonment defined?

 Domestic abuse includes physical, psychological, sexual, or emotional abuse, including efforts to control, isolate, humiliate, and intimidate, or to undermine the victim’s ability to reason independently.  All the facts and circumstances are considered in determining whether an individual is abused, including the effects of alcohol or drug abuse by the victim’s spouse. Depending on the facts and circumstances, abuse of the victim’s child or other family member living in the household may constitute abuse of the victim.

A taxpayer is a victim of spousal abandonment for a taxable year if, taking into account all facts and circumstances, the taxpayer is unable to locate his or her spouse after reasonable diligence.

If I get insurance through the Marketplace, how will I know what to report on my federal tax return?

If you purchased coverage through the Health Insurance Marketplace you should receive Form 1095-A, Health Insurance Marketplace Statement from your Marketplace by early February. This form provides information you will need when completing Form 8962. If you have questions about the information on Form 1095-A for 2014, or about receiving Form 1095-A for 2014, you should contact your Marketplace directly.  The IRS will not be able to answers questions about the information on your Form 1095-A or about missing or lost forms.

Filing electronically is the easiest way to file a complete and accurate tax return. Electronic Filing options include free Volunteer Assistance, IRS Free File, commercial software and professional assistance.

How is the amount of the premium tax credit determined?

The law bases the size of your premium tax credit on a sliding scale. Those who have a lower income get a larger credit to help cover the cost of their insurance. In other words, the higher your income, the lower the amount of your credit.You will figure your credit on Form 8962. You must complete this form to claim the premium tax credit and reconcile any advance credit payments with the premium tax credit you are eligible to claim on your return. Form 1095-A from your Marketplace provides information you will need when completing Form 8962.(see question 14) Filing electronically is the easiest way to file a complete and accurate tax return. Electronic Filing options include free Volunteer Assistance, IRS Free File, commercial software and professional assistance

Additionally, the premium tax credit is a refundable tax credit. This means that if the amount of the credit is more than the amount of your tax liability, you will receive the difference as a refund. If you owe no tax, you can get the full amount of the credit as a refund. However, if you receive advance payments of the credit, you will reconcile the advance payments with the amount of the actual premium tax credit that you calculate on your tax return. If your actual allowable credit on your return is less than your advance credit payments, the difference, subject to certain caps, will be subtracted from your refund or added to your balance due. If your actual allowable credit is more than your advance credit payments, the difference will be added to your refund or subtracted from your balance due.

This excerpt and additional Q&A information on the Premium Tax Credit can be found on the IRS website: http://www.irs.gov/Affordable-Care-Act/Individuals-and-Families/Questions-and-Answers-on-the-Premium-Tax-Credit#.VNO4_QFEocQ.gmail

Kendall Tyson ([email protected]), a Tax Manager at Langdon & Company LLP.  She specializes in physician/dentist practices, multi-state and nonprofit returns.

The Why, Who, What and How of an effective audit committee for nonprofit organizations

by Meagan Bullochhands

The establishing and maintaining an audit committee is considered a best practice for nonprofit organizations.  An audit committee can greatly help the governing board perform their fiduciary and oversight roles over financial reporting, reducing risk and maintaining donor confidence.  Some organizations may utilize their finance committee as an audit committee.  What is important is not the form of the committee but the substance.

Q: Why should a nonprofit consider forming an audit committee?

A: In addition to Sarbanes Oxley and state requirements imposed for organization’s soliciting funds within certain states, the Form 990 asks if an organization has an audit committee.  Although, such a committee is not a requirement, the establishment of one is considered a best practice by the IRS.  As the Form 990 is a public document, answering “no” to this question may lead to funders questioning why the organization is not following a suggested best practice.  The American Institute of Certified Public Accountants’ (AICPA) Audit Committee Toolkit: Not-for-Profit Organizations, 2nd Edition (available at AICPA Store) lists numerous reasons as to why a nonprofit organization should consider forming an audit committee, including providing better: financial results, decision-making in terms of accuracy and quality of financial reporting; ability to build stronger relationships with stakeholders; as well as facilitating transitions in leadership.

Q:  Who makes the best audit committee members?

A:  Audit committee’s typically consist of 3-6 members with diverse backgrounds and experience all of which are considered “financially literate.”  To be financially literate, members should be able to read and understand fundamental financial statements and recognize when the numbers along with associated disclosures to not make business sense.  Additionally, the best audit committee members are fully involved and engaged with the organization and ensure that two-way constructive dialogue occurs at all times between all parties involved.  Members should also be independent in both fact and appearance.  To be truly effective, the committee must be able to resist any attempt by management to compromise financial reporting.  The following relationships are considered to impair independence:

  1.  An audit committee member who is or has been an officer or employee of the organization during the past 3 years
  2. A member who is an immediate family member of an officer or someone in management
  3. A member who has a direct business relationship with the organization in the past three years; such as a consultant

Q:  Who can serve as a financial expert on the audit committee?

A:  The inclusion of at least one financial expert is a highly recommended best practice.  The following attributed are deemed essential components of a financial expert:

  1.  An understanding of generally accepted accounting principles (GAAP) and nonprofit financial statements
  2.   The ability to assess the general application of such principles in connection with the accounting for estimates, accruals and reserves
  3. Experience preparing, auditing, analyzing or evaluating financial statements that are comparable to those of the organization
  4. An understanding of internal controls and procedures for financial reporting
  5. An understanding of the audit committee function
  6. A general understanding of nonprofit financial issues and specific knowledge of the nonprofit industry in which the organization operates

It is worth noting that an audit committee financial expert has no greater obligations or liability than any other members of the audit committee and board of directors who are not designated as financial experts.

Q:  What should be the mission of an effective audit committee?

A:  Simply put, the mission should be oversight.  Specifically, the following areas should be their main focus:

  1.  Financial reporting
  2. Risk Management

Audit function – oversight of and communication with independent auditors, both internal and external

Langdon & Company LLP will be happy to assist with your audit needs.  Please contact our office!

Meagan Bulloch ([email protected]) is an audit manager at Langdon & Company LLP focused primarily on non-profit clients.

College Tax Credits 2014

by Cody Taylor

college-debtThere is often confusion surrounding who can claim college tax credits and for how much.  The two college tax credits are the American Opportunity Tax Credit (AOTC) and the Lifetime Learning Credit.  You can only claim one of these credits per student on your federal tax return.  The American Opportunity Tax Credit is worth up to $2,500 per qualifying student for up to four years and is currently available through 2017.

Everyone wants to be able to claim a college tax credit but there are various rules, income limitations and exclusions that apply for each credit.  The source of the money used to pay for qualified tuition expenses matters in determining whether you can qualify for one of the college tax credits.  For example, 529 college savings plans are utilized by many taxpayers to plan for college expenses, but expenses that were used to calculate the tax-free portion of a distribution from a 529 plan may not also be used to calculate the American Opportunity Tax Credit.  There are ways to claim the AOTC in the same year as a tax-free distribution from a 529 plan is made, but it takes planning.

You should receive a Form 1098-T from your school in the mail.  This and other related costs (often textbooks) should be supplied to your tax professional along with your other tax information so that they can help adopt the best college tax credits for your particular situation.  Proper planning ahead of time can save you money in the long run.  A tax professional can help you discuss college tuition planning so that when the time comes for you or your child to go off to college, you will be able to claim the maximum credit allowable to you.

Langdon & Company LLP has a tax department full of experience to help you make the right choice for this deduction.  Please feel free to contact our office for more information.

Cody Taylor ([email protected]) is a tax staff who specializes in various issues related to individuals and their businesses.

Audit Options

by Katie Anthony

You may think that since you are not a publicly held company that you don’t need an audit. However, audits are for private companies as well. Many non-profits are required to have audits in order to comply with federal and state grant requirements. Other companies just want to make sure that they are on the right track, and have an audit done in order to have an independent accountant take a look at their financial statements. In addition, there are different types of audits.

You may not think about it in your day to day activities, but your processes may be inefficient. Having an efficiency audit done can pinpoint areas that need work so that you can save money. All companies want to save money and being more efficient will allow your employees to either work less hours, or have time to accomplish more. Another factor could be that your employees are stressed out and don’t have time to get everything done. With just a few process changes, your employee satisfaction could go through the roof due to less job frustration. Happy employees make for a pleasant working environment and better employee retention.

working

Still don’t think you need an audit? Langdon & Company’s auditors can also perform Agreed-Upon-Procedures. With some direction from our Partners, you can take a look at your needs and tailor a report to the needs of your company. Maybe your industry has very particular regulations. Auditors can come in and make sure that you are complying with these regulations and are keeping the necessary documentation. A good example here is the trucking freight industry. CDL drivers and companies that employee these drivers are required to keep specific and detailed records regarding time spent driving, fuel bought and used across state lines, as well as annual checklists on driving records and other driver-specific information.

Give Langdon & Company LLP a call today to set up an appointment with a manager or partner concerning your company.

Katie Anthony ([email protected]) is an audit staff member at Langdon & Company LLP.  She enjoys working with a variety of clients and offering a fresh perspective on a multitude of issues.