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 is a 401(k) plan required to have an audit?

A 401(k) plan must have an annual CPA audit when it has 100 or more eligible participants at the beginning of the plan year. 'Eligible participants' includes all employees who meet plan eligibility requirements — not just those who have enrolled. The audit report must be attached to Form 5500 filed with the DOL. Failure to file results in civil penalties of $250 per day, up to $150,000 per year.

What is the 80–120 participant rule for EBP audits?

Under the 80–120 participant rule, a plan that had between 80 and 120 eligible participants at the beginning of the current plan year may continue to file as a small plan (no audit required) if it filed as a small plan in the prior year. This election can delay the audit requirement, but once a plan exceeds 120 participants, the audit is required in all future years.

What are common DOL findings in employee benefit plan audits?

The most common DOL findings include: (1) late remittance of employee contributions (must be deposited as soon as administratively feasible — often within 3–7 business days); (2) participant loan violations (exceeding 50% of vested balance or 5-year repayment period); (3) missing participant disclosures (SPD, fee disclosures, QDIA notices); (4) incorrect vesting calculations; and (5) improper distribution processing.

How much does an employee benefit plan audit cost?

EBP audit fees in the DC metro area typically range from $6,000–$15,000 depending on plan size, complexity, number of participants, and type of audit (limited vs. full scope). Contact us for a fixed-fee quote. Our fees are competitive with specialized EBP audit firms and significantly lower than national accounting firm rates.

What is the difference between a limited scope and full scope EBP audit?

In a limited scope audit (the most common), the plan trustee (Fidelity, Vanguard, Principal, etc.) certifies the investment information, reducing audit procedures on investments. In a full scope audit, the CPA tests all plan assets including investments. Limited scope audits are permitted under ERISA Section 103(a)(3)(C) and are accepted by the DOL for most plans.

What happens if my plan misses the EBP audit filing deadline?

Filing Form 5500 late or without the required audit report results in DOL penalties of $250 per day, up to $150,000 per year. The IRS can also assess its own penalties for late filing. If you've missed the deadline, the DOL's Delinquent Filer Voluntary Compliance (DFVC) Program allows plans to file late and pay reduced penalties — contact us immediately if your deadline has passed.

What documents do I need for a 401(k) plan audit?

We'll need: the plan document and all amendments; trust agreement; prior year Form 5500 with financial statements; trustee-certified investment statements for all plan assets; participant loan detail; contribution and distribution schedules; payroll records for participant deferral verification; and plan administrator records (enrollment, beneficiary designations, loan approvals).

How long does an employee benefit plan audit take?

A 401(k) plan audit typically takes 6–10 weeks from receipt of complete documents to delivery of the audit report. Timeline varies based on plan complexity, responsiveness during the process, and whether trustee statements are readily available. We work backward from your Form 5500 deadline to ensure timely delivery.

ERISA EBP Audit Specialists — DC, MD & VA

401(k) & Employee Benefit Plan Audit — ERISA Compliance for DC, Maryland & Virginia Employers

Under ERISA, 401(k) plans, pension plans, and other employee benefit plans with 100 or more eligible participants at the start of the plan year must have an annual audit by an independent CPA and file the audit report with Form 5500 with the Department of Labor. Failure to file results in penalties of $250 per day — up to $150,000 per year. Your Virtual CPA performs ERISA-required employee benefit plan audits for employers across DC, Maryland, and Virginia, including both limited scope and full scope audits.

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When is a 401(k) plan required to have an annual CPA audit?

A 401(k) or other ERISA-covered plan is required to have an annual independent CPA audit when it has 100 or more eligible participants at the beginning of the plan year. The audited financial statements are attached to Form 5500 filed with the DOL. Missing this requirement results in penalties of $250 per day up to $150,000 per year.

Limited Scope Audit: A limited scope audit (ERISA Section 103(a)(3)(C) audit) allows the CPA to exclude investment information certified by a qualified financial institution from testing, significantly reducing audit scope and cost. Most 401(k) plans qualify for limited scope because investments are held by qualifying trustees like Fidelity, Vanguard, or Empower.

ERISA: ERISA (Employee Retirement Income Security Act of 1974) is the federal law governing employer-sponsored retirement and welfare benefit plans, including 401(k), pension, and health plans. ERISA mandates annual audits for large plans and requires Form 5500 filings with the Department of Labor.

Employee Benefit Plan Audit Cost Estimates

Typical cost ranges for EBP audits in DC, Maryland, and Virginia (2026)

Feature	Plan Size	Audit Type
Under 200 participants	Limited scope	$5,000–$8,000
200–500 participants	Limited scope	$7,000–$12,000
500–1,000 participants	Limited scope	$10,000–$18,000
Any size (full scope)	Full scope	$15,000–$30,000+
First-year audit (any size)	Add for opening balances	+$2,000–$5,000

Employee Benefit Plan Audit Services

Full ERISA compliance support — from limited scope 401(k) audits to DOL representation and plan document review.

Limited Scope EBP Audit

The most common form of 401(k) plan audit. The plan trustee certifies the completeness and accuracy of investment information — reducing CPA audit procedures. We perform limited scope audits under AU-C 703, issuing the required ERISA Section 103(a)(3)(C) audit report for attachment to Form 5500.

Full Scope EBP Audit

Required when trustee certification is not available or when the DOL requires a full scope engagement. We perform a complete audit of all plan transactions and financial statements under AICPA SAS standards and DOL regulations, issuing an unqualified audit opinion on the plan's financial statements.

Form 5500 Filing Support

Form 5500 must be filed by the last day of the 7th month after plan year end (July 31 for calendar year plans) or October 15 with extension. We coordinate the audit deliverable with your Form 5500 preparer, provide the required audit report attachment, and help ensure timely filing to avoid DOL late-filing penalties.

DOL Audit Representation

If your plan receives a DOL investigation letter or is selected for a compliance audit, we represent you during the process. We review your plan's compliance, identify potential issues, and work with plan counsel to respond to DOL inquiries, correcting deficiencies through the VFCP (Voluntary Fiduciary Correction Program) where applicable.

Plan Document & Compliance Review

As part of our EBP audit, we review plan documents for compliance with current law, identify operational failures (loans not meeting plan requirements, late contributions, missing participant notices), and recommend corrections through IRS EPCRS or DOL VFCP before they become findings.

80–120 Participant Rule Analysis

Plans with between 80 and 120 eligible participants at plan year start may elect to file as a small plan (no audit required) if they were a small plan the prior year. We analyze your plan's participant count and provide clear guidance on whether the audit requirement applies and how to document the eligibility determination.

Serving Employers Across DC, Maryland & Virginia

From DC-area associations and nonprofits to Virginia and Maryland businesses, we serve employers across all industries with 401(k) plans requiring ERISA audits.

Washington DC

Associations, nonprofits, law firms, and professional services firms with 100+ plan participants

Northern Virginia (Fairfax, Loudoun, Arlington)

Tech companies, defense contractors, and healthcare systems with large participant counts

Montgomery County, MD

Healthcare, biotech, and professional services employers in Bethesda and Rockville

Baltimore Metro, MD

Financial services, healthcare systems, universities, and manufacturing companies

Richmond & Hampton Roads, VA

Financial institutions, healthcare systems, state government contractors

Across the DMV Region

Any employer with a 401(k), 403(b), pension, profit-sharing, or ESOP with 100+ participants

The DC metro area has thousands of employers with 100+ participant benefit plans across government contractors, nonprofits, law firms, healthcare systems, and technology companies. Many don't realize their plan requires an annual CPA audit — until the DOL sends a penalty notice. Your Virtual CPA helps you stay compliant and avoid costly penalties.

Related Services

Nonprofit Audit (Single Audit)

Federal compliance audits for nonprofits.

Small Business Audit

Audits for bank loans, SBA, and investors.

Government Contractor Audit

DCAA compliance for federal contractors.

Attestation Services

AUPs, reviews, and SSAE 18 engagements.

Virtual CFO Services

Ongoing financial oversight for growing businesses.

Book a Consultation

Talk to an EBP audit specialist.

Employee Benefit Plan Audit FAQs

Common questions from HR teams and CFOs about ERISA audit requirements, Form 5500, and DOL compliance.

Is Your 401(k) Plan Due for an Audit?

Don't wait for a DOL penalty notice. If your plan has 100 or more eligible participants, the audit is required. Our team delivers ERISA-compliant employee benefit plan audits with fixed pricing and expert DOL coordination.