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.

Is SOC 2 the same as HIPAA compliance?

No. SOC 2 and HIPAA are separate frameworks. HIPAA applies to covered entities and business associates handling Protected Health Information. SOC 2 is a voluntary attestation framework for service organizations. However, organizations subject to HIPAA can use SOC 2's Privacy criteria to demonstrate broader privacy control maturity. Some organizations pursue both.

How long does it take to get SOC 2 Type II certified?

A Type II engagement requires: 1–3 months readiness assessment and remediation, plus 6–12 months observation period, plus 2–3 months for report completion. Total: 9–18 months from start to final report. Starting early is essential if a funder or contract requires SOC 2 within a specific timeframe.

What is the cost of SOC 2 for a nonprofit?

Readiness assessment: $3,000–$8,000. Type I report: $8,000–$20,000. Type II report: $15,000–$40,000. Additionally, organizations typically spend on control implementation (technology, policies) before the examination. For smaller nonprofits, we help scope the examination to the most relevant Trust Services Criteria to reduce cost.

Do we need all 5 Trust Services Criteria in our SOC 2?

No. The Security criteria (Common Criteria) is required for all SOC 2 reports. The other four (Availability, Processing Integrity, Confidentiality, Privacy) are optional — include only the criteria relevant to your organization's commitments to users. Most nonprofits need Security plus Privacy; technology platforms often add Availability.

Can we use a SOC 2 report for multiple funders?

Yes. A SOC 2 report is designed to be shared with multiple parties. The report includes a description of your system, the criteria tested, and the auditor's findings. You can share the report directly with funders under an NDA or include it in grant applications as an attachment.

What happens if our SOC 2 exam finds control failures?

Control failures (exceptions) are reported in the SOC 2 report along with management's response. A report with exceptions does not mean you fail — it means the report accurately discloses the control gap. Funders evaluate the severity and management's remediation response. Our readiness assessment process is specifically designed to identify and fix issues before the examination begins.

Nonprofit Cybersecurity Compliance

SOC 2 Compliance for DC, Maryland & Virginia Nonprofits

Do nonprofits need a SOC 2 report?

Nonprofits that store donor financial data, process online payments, manage sensitive client information, or provide software platforms to partner organizations may be required to obtain a SOC 2 report. Institutional funders, government agencies, and large corporate donors increasingly require SOC 2 Type II reports from nonprofits handling sensitive data as part of grant due diligence.

Common SOC 2 Challenges for Nonprofits

"A foundation funder asked for a SOC 2 report and we don't know what it is"

SOC 2 (Service Organization Control 2) is an attestation report examining an organization's controls related to security, availability, processing integrity, confidentiality, and privacy. Institutional funders use it to verify that organizations handling sensitive data have adequate controls.

"We collect donor credit cards and health data but have never had a security audit"

Nonprofits that process online donations, store recurring payment information, or collect health/social service data are increasingly scrutinized for data security controls.

"Our government contract requires evidence of cybersecurity controls"

DC, Maryland, and Virginia government agencies increasingly require evidence of security control frameworks for nonprofits handling sensitive beneficiary data under government contracts.

"We built a nonprofit tech platform and enterprise clients want SOC 2"

Nonprofit technology platforms (case management systems, fundraising software, program tracking tools) face SOC 2 requirements from enterprise nonprofit clients procuring their services.

"We're unsure whether to pursue SOC 2 Type I or Type II"

Type I examines controls at a point in time. Type II examines controls over a 6–12 month period and is broadly required by enterprise clients and institutional funders. Choosing wrong wastes significant time and money.

Not sure if your nonprofit needs SOC 2?

We'll review your funder requirements, data handling practices, and contracts — then tell you exactly what you need and what it will cost.

Key SOC 2 Concepts

SOC 2 (Service Organization Control 2): An attestation report under SSAE 18 (AT-C Section 205) that examines a service organization's controls related to the Trust Services Criteria: security, availability, processing integrity, confidentiality, and privacy. SOC 2 Type I reports on design of controls at a point in time; Type II reports on operating effectiveness over a period.

Trust Services Criteria: The five principles defined by the AICPA for SOC 2 reports: Security (CC criteria — protection against unauthorized access), Availability (system accessible as committed), Processing Integrity (system processing is complete and accurate), Confidentiality (information designated as confidential is protected), and Privacy (personal information is collected, used, retained, and disclosed appropriately).

SOC 2 Type I vs. Type II

Feature	SOC 2 Type I	SOC 2 Type II
Coverage	Controls designed at a point in time	Controls operating effectively over 6–12 months
Timeline	2–4 months from engagement start	9–18 months (includes observation period)
Cost	$8,000–$20,000	$15,000–$40,000+
Market acceptance	Limited — some smaller funders accept	Broadly required by enterprise/institutional
Best for	First SOC 2; demonstrating initial controls	Ongoing compliance; enterprise client requirement
Report renewal	Annual (new Type I each year)	Annual (covers new 12-month period)

Our SOC 2 Process for Nonprofits

Readiness Assessment

We assess your current controls against the SOC 2 Trust Services Criteria, identify gaps, and create a prioritized remediation roadmap before the formal examination period begins.

Control Implementation Support

We help your team document policies, implement technical controls, and establish monitoring procedures. We can also refer to cybersecurity consultants for technical implementation.

Examination Period

For Type II, we monitor your controls over the agreed observation period (6–12 months), testing operating effectiveness through walkthroughs, inspection of evidence, and inquiry.

Report Issuance

We issue the SOC 2 report — available to share with funders, clients, and grant applications as evidence of your security control maturity.

SOC 2 for DC/MD/VA Nonprofits

DC-area nonprofits receiving HHS, HUD, or DC government contracts handling Protected Health Information (PHI) or Personally Identifiable Information (PII) are increasingly required to demonstrate security controls consistent with NIST 800-53 or SOC 2. Northern Virginia nonprofits serving government contractors or handling classified-adjacent data face similar requirements.

Related Services

Nonprofit Audit Services Attestation Services Grant Compliance Audit Government Contractor Audit

Frequently Asked Questions

Ready to Get Your SOC 2 Report?

We guide DC/MD/VA nonprofits through every step — readiness assessment, control implementation, examination, and report issuance. Fixed fees, no surprises.