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.

How is DC's $500K threshold different from Maryland and Virginia?

DC's threshold of $500,000 moves directly to a full audit requirement — there is no intermediate tier requiring only a financial statement review. Maryland has a review tier at $300K–$749,999 and audit at $750K+. Virginia has a review tier at $750K–$999,999 and audit at $1M+. DC's lower threshold and no-review-tier structure means some smaller DC nonprofits face a full audit earlier than in neighboring states.

Does DC require registration for online solicitation?

Yes. DC considers online solicitation (including donation buttons, crowdfunding campaigns, and email appeals visible to DC residents) as soliciting in DC. Organizations primarily based outside DC that conduct any online fundraising should register in DC if any DC residents are likely to donate.

What is the DC nonprofit income tax?

DC imposes a franchise tax (at the DC corporate rate) on unincorporated businesses operating in DC. Most 501(c)(3) organizations are exempt from DC franchise tax. However, unrelated business income is taxable. DC requires Form D-20 (corporation franchise tax return) for nonprofits with taxable DC income.

Are DC government grant recipients subject to additional audit requirements?

Yes. Many DC agency grants require compliance audits or AUP reports beyond the DLCP registration requirements. DC Office of Grants Management, DC Department of Human Services, DC Department of Housing and Community Development, and DC Health all have grant-specific audit or compliance reporting requirements. Check each grant agreement for the audit clause.

Do DC charter schools have different audit requirements than regular nonprofits?

Yes. DC charter schools have additional audit requirements through the DC Public Charter School Board (PCSB). PCSB requires submission of audited financial statements within 150 days of fiscal year-end (by November 28 for June 30 year-ends). PCSB also maintains an approved auditor list. DC charter schools must satisfy both PCSB and DLCP requirements.

What is the audit requirement for DC-based CDFIs and housing organizations?

DC-based CDFIs and housing organizations receiving HUD, DC DHCD, or DC Housing Finance Agency funding may be subject to Single Audit requirements ($1M+ federal), CDFI-specific audit requirements (annual financial statement audit within 6 months of fiscal year-end for certified CDFIs), and DC DHCD grant-specific AUP requirements.

Can a DC nonprofit use the same audit for DLCP registration and federal grant compliance?

Yes. If your audit is performed in accordance with both GAAS and 2 CFR 200 (Single Audit), it satisfies both the DLCP registration requirement and the federal grant compliance requirement simultaneously. We coordinate Single Audit and registration compliance in a single engagement when applicable.

How is DC's $500K threshold different from Maryland and Virginia?

DC's threshold of $500,000 moves directly to a full audit requirement — there is no intermediate tier requiring only a financial statement review. Maryland has a review tier at $300K–$749,999 and audit at $750K+. Virginia has a review tier at $750K–$999,999 and audit at $1M+. DC's lower threshold and no-review-tier structure means some smaller DC nonprofits face a full audit earlier than in neighboring states.

Does DC require registration for online solicitation?

Yes. DC considers online solicitation (including donation buttons, crowdfunding campaigns, and email appeals visible to DC residents) as soliciting in DC. Organizations primarily based outside DC that conduct any online fundraising should register in DC if any DC residents are likely to donate.

What is the DC nonprofit income tax?

DC imposes a franchise tax (at the DC corporate rate) on unincorporated businesses operating in DC. Most 501(c)(3) organizations are exempt from DC franchise tax. However, unrelated business income is taxable. DC requires Form D-20 (corporation franchise tax return) for nonprofits with taxable DC income.

Are DC government grant recipients subject to additional audit requirements?

Yes. Many DC agency grants require compliance audits or AUP reports beyond the DLCP registration requirements. DC Office of Grants Management, DC Department of Human Services, DC Department of Housing and Community Development, and DC Health all have grant-specific audit or compliance reporting requirements. Check each grant agreement for the audit clause.

Do DC charter schools have different audit requirements than regular nonprofits?

Yes. DC charter schools have additional audit requirements through the DC Public Charter School Board (PCSB). PCSB requires submission of audited financial statements within 150 days of fiscal year-end (by November 28 for June 30 year-ends). PCSB also maintains an approved auditor list. DC charter schools must satisfy both PCSB and DLCP requirements.

What is the audit requirement for DC-based CDFIs and housing organizations?

DC-based CDFIs and housing organizations receiving HUD, DC DHCD, or DC Housing Finance Agency funding may be subject to Single Audit requirements ($1M+ federal), CDFI-specific audit requirements (annual financial statement audit within 6 months of fiscal year-end for certified CDFIs), and DC DHCD grant-specific AUP requirements.

Can a DC nonprofit use the same audit for DLCP registration and federal grant compliance?

Yes. If your audit is performed in accordance with both GAAS and 2 CFR 200 (Single Audit), it satisfies both the DLCP registration requirement and the federal grant compliance requirement simultaneously. We coordinate Single Audit and registration compliance in a single engagement when applicable.

Washington DC Nonprofit Compliance

Washington DC Nonprofit Audit Requirements

When does a Washington DC nonprofit need an audit?

Washington DC requires nonprofits soliciting charitable contributions with annual gross revenues exceeding $500,000 to submit audited financial statements with their DLCP charitable solicitation registration. Unlike Maryland and Virginia, DC moves directly from no financial requirement to a full audit at the $500,000 threshold — there is no intermediate review tier. Registration renews annually.

Washington DC Charitable Solicitation Registration Requirements

Feature	Registration Required?	Financial Document Required	Audit Required?
Under $25,000	No	None	No
$25,000–$499,999	Yes — DLCP	Form 990 or 990-EZ	No
$500,000+	Yes — DLCP	Audited financial statements (CPA)	Yes
Federal awards $1M+	Yes (separately)	Single Audit (2 CFR 200)	Yes
DC government grants	Yes	Per grant agreement (may require AUP or audit)	Varies

Source: DC Charitable Solicitation Act — DC Department of Licensing and Consumer Protection (DLCP)

DC Registration Deadlines

Key Deadlines

DLCP renewal: Annually, 60 days before registration expiration
DC uses registration anniversary date — not fiscal year-end
Start audit 3–4 months before renewal date
Audit must be complete before renewal submission

Late Filing & Suspension

Late renewal: $100 late fee
Risk of registration suspension with limited notice
Suspended orgs cannot legally solicit in DC

Common DC Compliance Mistakes

"We didn't realize DC uses the registration anniversary date — not the fiscal year-end"

DC's registration renewal is based on when you first registered (anniversary date), not your fiscal year-end. Many DC nonprofits are confused by this difference from Maryland and Virginia.

"Our gross revenue is $520K but most is government contracts — do we still need an audit?"

Yes. DC's $500K threshold applies to gross revenues, which includes government grants and contracts. There's no carve-out for non-contribution revenue.

"We're incorporated in Maryland but do events in DC — do we need DC registration?"

If you solicit contributions from DC residents — including at DC events, through DC-visible websites, or via direct mail to DC addresses — you must register in DC regardless of your state of incorporation.

"DC DLCP suspended our registration and we didn't get notice"

DC DLCP sends renewal reminders but suspension can happen with limited notice. A suspended organization cannot legally solicit in DC. We help organizations maintain current registration and avoid suspensions.

Key DC Regulatory Terms

DLCP (DC Department of Licensing and Consumer Protection): The DC agency that administers charitable solicitation registration for organizations soliciting contributions from DC residents. DLCP maintains the public database of registered DC charities and enforces the DC Charitable Solicitation Act (DC Official Code § 44-1701 et seq.).

DC Charitable Solicitation Act: Washington DC's law governing the registration and reporting requirements for charitable organizations that solicit contributions from DC residents. The Act requires annual registration, financial reporting, and in certain cases, audited financial statements for organizations above revenue thresholds.

How Your Virtual CPA Helps DC Nonprofits

We specialize in DC charitable solicitation compliance, charter school audits, and federal grant compliance for organizations across the District. Our services include:

Full audit engagements for DC organizations above the $500K threshold
Form 990 preparation for DLCP registration renewal filing
Single Audit for DC-based nonprofits with $1M+ in federal awards
AUP engagements for organizations receiving DC government grants
New organization DLCP registration guidance
Registration reinstatement for suspended organizations

Related Resources

Nonprofit Audit Hub Maryland Nonprofit Audit Requirements Virginia Nonprofit Audit Requirements Charter School Audit Services

Frequently Asked Questions — DC Nonprofit Audits

Ready to Meet DC's DLCP Charitable Registration Requirements?

Your Virtual CPA provides DC-specific nonprofit audit and compliance services — from DLCP registration to federal Single Audit engagements.