What is a virtual CPA?

A virtual CPA provides the same services as a traditional CPA firm — tax preparation, bookkeeping, audits, financial planning — but delivers them remotely using secure cloud technology. You get expert-level service without visiting a physical office.

How much do virtual CPA services cost?

Pricing depends on the complexity of your financial situation and the services you need. We provide transparent fee estimates during your initial consultation. Virtual CPA firms typically have lower overhead than traditional firms, which translates to more competitive rates.

Do I need an audit for my nonprofit?

Many states require nonprofits to have an independent audit once they exceed certain revenue thresholds, often $500,000-$750,000. Grant-making organizations and government agencies frequently require audited financial statements. We can help determine your specific audit requirements.

What is the difference between an S-Corp and an LLC for tax purposes?

An LLC provides liability protection and pass-through taxation by default. An S-Corp election can provide additional tax savings by allowing owners to split income between salary (subject to payroll taxes) and distributions (not subject to payroll taxes). The right choice depends on your income level, business structure, and state tax laws.

What does a virtual CFO do?

A virtual CFO (fractional CFO) provides high-level financial strategy and oversight on a part-time basis — budgeting, forecasting, cash flow management, financial analysis, KPI reporting, and strategic financial planning. You get C-suite financial leadership without the full-time cost.

Can you help if I'm behind on bookkeeping or taxes?

Yes. We offer catch-up bookkeeping services to bring your books current and can help resolve back tax issues including IRS notices, unfiled returns, and payment plans.

What accounting software do you work with?

We work with QuickBooks Online, Xero, FreshBooks, Wave, and other major cloud accounting platforms. We can also help you select and set up the best software for your business.

How do I prepare for tax season?

Organize financial records throughout the year, keep receipts for business expenses, track mileage and home office usage, make quarterly estimated tax payments, and schedule a year-end tax planning session before December 31.

What is DCAA compliant accounting?

DCAA (Defense Contract Audit Agency) compliant accounting is a system that meets federal government requirements for contractors. It includes proper timekeeping, job cost accounting, indirect cost allocation, and specific internal controls required for government contract work.

Do I need a CPA or a bookkeeper?

Bookkeepers handle day-to-day recording of financial transactions. CPAs handle higher-level work — tax planning and preparation, audits, financial analysis, and strategic advice. Many businesses need both. Our firm provides both services so you have one team managing everything.

What's the difference between an audit, review, and compilation?

An audit provides the highest level of assurance through independent verification of financial statements. A review provides limited assurance through analytical procedures and inquiries. A compilation presents financial information in statement format without assurance. The right choice depends on your stakeholders' requirements.

Do you serve businesses outside the DMV area?

Yes. While our primary service area is Washington DC, Maryland, and Virginia, we serve clients nationwide through our 100% virtual model. Our cloud-based systems allow us to work with businesses anywhere in the United States.

When should I get a review instead of an audit?

Reviews are appropriate when lenders or grantors need independent financial assurance but don't require the highest level. Many banks accept reviewed financials for loans under $1M. HOAs often accept reviews. Nonprofits under certain state thresholds (e.g., Virginia under $1M, Maryland under $750K) may satisfy charitable solicitation requirements with a review.

Does my bank require an audit or will a review work?

It depends on the loan type and amount. SBA loans over $2M require audited financials per SBA SOP 50 10 7. Commercial real estate loans often require audits. For smaller business loans and lines of credit, many lenders accept reviewed financials. Ask your lender specifically what they require before engaging a CPA.

How much does a CPA audit cost vs. a review in DC, Maryland, or Virginia?

In the DC/MD/VA area: compilations run $1,500–$5,000; reviews typically $4,000–$10,000; audits $8,000–$40,000+ depending on organization size and complexity. A review typically costs 40–60% of what an audit would cost for the same organization.

What is a SSARS engagement?

SSARS (Statements on Standards for Accounting and Review Services) are the professional standards governing CPA compilation and review engagements. Both compilations and reviews are SSARS engagements, while audits are governed by GAAS (Generally Accepted Auditing Standards) or GAGAS (Government Auditing Standards for Yellow Book audits).

Can I use a compilation for my HOA?

Many HOAs use compilations for their annual financial statements, especially smaller associations. However, if your HOA bylaws specify "audit" or "review," you must meet that standard. Some lenders require reviewed or audited HOA financials for unit owners to qualify for mortgages under Fannie Mae/Freddie Mac guidelines.

Will a review satisfy nonprofit audit requirements in DC, Maryland, and Virginia?

DC requires audited financials for nonprofits with contributions over $500,000. Maryland requires audits for nonprofits over $750,000. Virginia's threshold is $1,000,000. Below these thresholds, a review may satisfy state charitable solicitation requirements — but individual grantors may have stricter requirements.

Last Updated: May 2026

Audit vs. Review vs. Compilation

A plain-English guide to the three levels of CPA financial statement services — what each means, when it's required, and what it costs in DC, Maryland, and Virginia.

What is the difference between a compilation, review, and audit?

A compilation has no CPA assurance — the accountant presents financial statements without verifying them. A review provides limited assurance through analytical procedures and management inquiries. A full audit provides the highest assurance level, with independent testing, confirmations, and a formal opinion. Cost ranges from $1,500 for a compilation to $40,000+ for a complex audit.

Key Definitions

Compilation: A compilation is a CPA engagement under SSARS where the accountant presents financial statements based on management-provided information without expressing assurance or verifying the data.

Review: A review is a CPA engagement providing limited assurance that nothing came to the accountant's attention indicating the financial statements are not fairly presented, based on analytical procedures and inquiries.

Audit: An audit is an independent examination of financial statements providing reasonable (not absolute) assurance that statements are fairly presented in accordance with GAAP, following Generally Accepted Auditing Standards.

Audit vs. Review vs. Compilation: Side-by-Side Comparison

Feature	Compilation	Review	Audit
CPA assurance level	None (no opinion)	Limited assurance	Reasonable assurance
Independence required	Yes	Yes	Yes
Testing of transactions
Analytical procedures
Management inquiries
Confirmation of balances
CPA opinion issued
Typical cost (DC/MD/VA)	$1,500–$5,000	$4,000–$10,000	$8,000–$40,000+
Timeline	1–3 weeks	3–6 weeks	6–12 weeks
GAGAS (Yellow Book) option

Choosing the Right Level of Service

When a Compilation Is the Right Choice

Compilations are appropriate when management needs financial statements presented in a standard format but no outside party requires independent assurance. Common use cases include:

Real estate disclosure requirements (e.g., condo association budgets)
Franchise agreements requiring financial statements from franchisees
Internal management reporting that needs to be CPA-formatted
Smaller nonprofits below state charitable solicitation audit thresholds

When a Review Makes Sense

Reviews provide a meaningful level of independent assurance at a fraction of audit cost. Consider a review when:

Applying for bank loans of $250,000–$1,000,000 (many lenders accept reviews)
Your HOA bylaws require independent financial assurance but not a full audit
Your nonprofit is below state audit thresholds but above compilation-acceptable levels
Investors or partners want independent assurance without full audit expense

When a Full Audit Is Required

Audits are required in specific regulatory and contractual situations:

SBA loans over $2M (required per SBA SOP 50 10 7)
Federal grants exceeding $1,000,000 (raised from $750,000 effective for fiscal years beginning on or after October 1, 2024) trigger Single Audit requirements (Uniform Guidance)
M&A due diligence — buyers require audited financials for target companies
Publicly regulated entities (PCAOB standards apply for SEC registrants)
Government contractors meeting DCAA audit thresholds
Employee benefit plans with 100+ participants (DOL requirement)

Which Do DC/MD/VA Organizations Typically Need?

Washington, DC

Nonprofits >$500K contributions: Audit required
Nonprofits $200K–$500K: Review acceptable
HOAs: Varies by bylaws
DC government contractors: GAGAS audit often required

Maryland

Nonprofits >$750K: Audit required
Nonprofits $300K–$750K: Review acceptable
HOAs: Audit if 150+ units, else bylaws govern
MD state grants: Audit required for awards >$200K

Virginia

Nonprofits >$1M: Audit required
Nonprofits $500K–$1M: Review acceptable
HOAs: Virginia Code §55.1-1954 governs
VA state contracts: Audit thresholds apply

Frequently Asked Questions

Related Services

Audit Services|Attestation Services|Compilation & Review|Nonprofit Audit|HOA Audit

Not Sure Which Service You Need?

Our licensed CPAs will review your situation and recommend the right level of service — compilation, review, or audit — based on your lender, grantor, or regulatory requirements.