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.

What is the $1,000,000 threshold for Single Audit?

The threshold applies to federal financial assistance expended in a single fiscal year. "Expended" means the period when the award was used, not when funds were received. This includes grants, contracts, loans, loan guarantees, and subsidies from federal agencies.

Does funding passed through our state government count toward the $1M?

Yes. Federal funds passed through state or local governments to your nonprofit are called "federal awards" and count toward the $1,000,000 threshold. Your state grant agreement or Notice of Award should identify the federal program and ALN number.

What is the deadline to submit a Single Audit?

Your audit report and Data Collection Form must be submitted to the Federal Audit Clearinghouse within the earlier of: (1) 30 days after the auditor's report date, or (2) 9 months after the end of your fiscal year. For June 30 year-ends, this means March 31.

What are the most common Single Audit findings?

Time and effort documentation (payroll charges to grants without adequate time records) is the most frequent finding nationally. Other common findings include procurement violations (lack of competitive bids), unallowable costs, cash management failures, and inadequate sub-recipient monitoring.

What happens if we have a repeat finding?

Repeat findings from prior years are flagged in the Schedule of Findings and Questioned Costs and automatically visible to program officers in the FAC database. Federal agencies may impose special conditions, require corrective action plans, or reduce future award amounts. Our audit readiness services help resolve findings before they repeat.

How is a "major program" determined?

Programs are classified as Type A (highest dollar, above 3% of total federal expenditures or $1M, whichever is larger) or Type B. From Type A programs, we identify high-risk programs. Type B programs also receive risk assessment. The result determines which programs receive full compliance testing.

What is a questioned cost in a Single Audit?

A questioned cost is a federal expenditure that the auditor determined may not be allowable, allocable, or reasonable under the grant's terms or federal regulations. Questioned costs above $25,000 must be listed individually in the Schedule of Findings. The federal agency then determines whether to disallow (require repayment) or allow the cost.

Can we appeal a Single Audit finding?

Yes. The organization submits a corrective action plan (CAP) with the audit report, explaining how findings will be resolved. The federal agency or pass-through entity then reviews the CAP and findings, and may issue a management decision. Disputed determinations can be appealed through the federal agency's dispute resolution process.

How much does a Single Audit cost for a DC/MD/VA nonprofit?

Single Audits in the DMV area typically range from $12,000 to $35,000+, depending on the number of major programs, organizational complexity, quality of books, and whether there are prior-year findings. We provide fixed-fee quotes after a brief intake conversation — no surprises.

What is the $1,000,000 threshold for Single Audit?

The threshold applies to federal financial assistance expended in a single fiscal year. "Expended" means the period when the award was used, not when funds were received. This includes grants, contracts, loans, loan guarantees, and subsidies from federal agencies.

Does funding passed through our state government count toward the $1M?

Yes. Federal funds passed through state or local governments to your nonprofit are called "federal awards" and count toward the $1,000,000 threshold. Your state grant agreement or Notice of Award should identify the federal program and ALN number.

What is the deadline to submit a Single Audit?

Your audit report and Data Collection Form must be submitted to the Federal Audit Clearinghouse within the earlier of: (1) 30 days after the auditor's report date, or (2) 9 months after the end of your fiscal year. For June 30 year-ends, this means March 31.

What are the most common Single Audit findings?

Time and effort documentation (payroll charges to grants without adequate time records) is the most frequent finding nationally. Other common findings include procurement violations (lack of competitive bids), unallowable costs, cash management failures, and inadequate sub-recipient monitoring.

What happens if we have a repeat finding?

Repeat findings from prior years are flagged in the Schedule of Findings and Questioned Costs and automatically visible to program officers in the FAC database. Federal agencies may impose special conditions, require corrective action plans, or reduce future award amounts. Our audit readiness services help resolve findings before they repeat.

How is a "major program" determined?

Programs are classified as Type A (highest dollar, above 3% of total federal expenditures or $1M, whichever is larger) or Type B. From Type A programs, we identify high-risk programs. Type B programs also receive risk assessment. The result determines which programs receive full compliance testing.

What is a questioned cost in a Single Audit?

A questioned cost is a federal expenditure that the auditor determined may not be allowable, allocable, or reasonable under the grant's terms or federal regulations. Questioned costs above $25,000 must be listed individually in the Schedule of Findings. The federal agency then determines whether to disallow (require repayment) or allow the cost.

Can we appeal a Single Audit finding?

Yes. The organization submits a corrective action plan (CAP) with the audit report, explaining how findings will be resolved. The federal agency or pass-through entity then reviews the CAP and findings, and may issue a management decision. Disputed determinations can be appealed through the federal agency's dispute resolution process.

How much does a Single Audit cost for a DC/MD/VA nonprofit?

Single Audits in the DMV area typically range from $12,000 to $35,000+, depending on the number of major programs, organizational complexity, quality of books, and whether there are prior-year findings. We provide fixed-fee quotes after a brief intake conversation — no surprises.

Single Audit Services for DC, Maryland & Virginia Nonprofits

When does a nonprofit need a Single Audit?

A nonprofit requires a Single Audit when it expends $1,000,000 or more in federal financial assistance in a single fiscal year (raised from $750,000 effective for fiscal years beginning on or after October 1, 2024) under 2 CFR Part 200 (Uniform Guidance). This includes direct federal grants and federal funds passed through state or local governments. The audit covers both financial statement testing and compliance testing for each major federal program.

Why Organizations Come to Us

We didn't know pass-through state grants count toward the $1M threshold

Many nonprofits receiving state housing, education, or social services grants are unknowingly subject to Single Audit because those funds originate from federal agencies.

Our FAC submission was late and our funder found out

Data Collection Form (SF-SAC) must be submitted to the Federal Audit Clearinghouse within 30 days of the auditor's report, or 9 months after fiscal year-end — whichever is earlier. Late submissions trigger funder scrutiny.

We have findings from prior years and they keep repeating

Repeat findings in the Schedule of Findings and Questioned Costs (SFFAC) are flagged by program offices and can jeopardize grant renewals.

Our time and effort documentation is a mess

Time and effort (T&E) documentation is the most common Single Audit finding. Federal staff must document time charged to specific grants on a regular basis — not reconstructed at year-end.

We don't know which of our grants are 'major programs'

The major program determination requires calculating Type A/B thresholds and applying a risk-based approach. Incorrect major program selection invalidates the audit scope.

We manage sub-recipients and don't know our monitoring obligations

Pass-through entities must monitor sub-recipients, including risk assessments, site visits for high-risk sub-recipients, and documentation of monitoring procedures.

Ready to Get Started?

Key Single Audit Terms

Schedule of Expenditures of Federal Awards (SEFA): A required schedule listing all federal awards expended by the organization during the fiscal year, organized by federal agency and ALN (Assistance Listing Number). The SEFA is the primary document auditors use to identify major programs subject to compliance testing.

Federal Audit Clearinghouse (FAC): The federal repository where Single Audit data collection forms and audit packages are submitted electronically. Submission is required within 30 days of the auditor's report, or 9 months after fiscal year-end, whichever is earlier.

Major Program: A federal program selected for compliance testing based on a risk-based approach. Programs are classified as Type A (high-dollar) or Type B, and risk factors determine which must receive compliance testing. Each major program gets its own compliance opinion.

Single Audit vs. Standard Financial Statement Audit

Feature	Standard GAAS Audit	Single Audit (2 CFR 200)
Scope	Financial statements only	Financial statements + federal program compliance
Reports issued	1 auditor's opinion	4–5 reports including findings schedule
FAC submission	Not required	Required within 30 days of report date
Compliance testing	None	Each major program tested against 12 compliance types
Estimated cost	$8,000–$18,000	$12,000–$35,000+
Specialist required	CPA with GAAS training	CPA with 2 CFR 200 expertise

Our Process

Schedule of Federal Awards Review

We compile and review your SEFA, verify ALN numbers, and confirm which state pass-throughs originate from federal sources.

Major Program Determination

We apply the risk-based approach to identify Type A/B programs and determine which programs require compliance testing based on dollar thresholds and prior-year risk factors.

Financial Statement Audit

We conduct the GAAS financial statement audit including testing of internal controls, substantive procedures, and review of restricted net asset classifications.

Compliance Testing

For each major program, we test 12 types of compliance requirements: activities allowed, allowable costs, cash management, eligibility, equipment, matching, period of performance, procurement, program income, reporting, subrecipient monitoring, and special tests.

Reporting & FAC Submission

We issue all required reports, prepare the Data Collection Form (SF-SAC), and submit the complete audit package to the Federal Audit Clearinghouse on your behalf.

DC, Maryland & Virginia Specifics

Washington DC

Most DC nonprofits receiving District government grants that pass through federal sources (CDBG, HOPWA, Title I) are subject to Single Audit. PCSB schools with Title I funding are routinely subject.

Maryland

Maryland Department of Human Services, Maryland Department of Housing, and MSDE pass federal funds to nonprofits — these count toward your threshold. Maryland registration renewal may require the Single Audit report.

Virginia

VDSS, VDH, and VDOE all pass through significant federal awards. Virginia VDACS registration requires submission of the Single Audit if applicable.

Related Nonprofit Services

Nonprofit Audit Hub →Audit Readiness →Grant Compliance →Yellow Book Audit →

Frequently Asked Questions

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Free consultation. No pressure. Licensed CPAs serving DC, Maryland, and Virginia.