Statements of Functional Expenses

If you file audited financial statements and/or a Form 990 (not EZ or postcard form), one you’ll have to prepare is a Statement of Functional Expenses. The main purpose of the statement is to break out your expenses into 3 pots – your programs, fundraising, and...

1099 B Notices

If you file 1099s, you may receive a letter from the IRS called a Notice CP-2100, which is typically sent in late fall. These notices alert you to possible issues with 1099s you’ve filed. The reason you would get one of these letters is if the IRS was unable to match...

Tracking and Reporting Payments Requiring a 1099

The April 15 deadline for filing our taxes is a good reminder to review what payments need to be tracked and reported on 1099s. The most common payments that you’ll need to issue 1099s for are consulting or other professional services that non-employees perform for...

Revenue Recognition – Transitioning to the New Standard

As we transition to the new revenue recognition standard, 2 immediate questions are (1) how is this different from current practice, and (2) how will the transition be reflected in financial statements? The answer to the first question depends on what industry you’re...

Revenue Recognition – Steps 4 and 5 and Disclosures

New rules are coming out for how to recognize revenue from contracts. For public entities, they will take effect for fiscal years starting after December 15, 2017, and other entities will have an extra year – they will start in fiscal years beginning after December...