[Anonymous]

I just recently received my CPA license in the state of TN this month. While going through the CPA exam process this past year, I have also been doing bookkeeping for a small non-profit. It’s a nominal amount of work, 10-12 hours a month.

Now that I’ve received my license I realized I have to register myself as an accounting firm in order to do any independent side work. And, if I prep any financials for this non-profit, which I do monthly from their QuickBooks records, it appears I have to register for a Peer Review Program. Of course all of this adds up in fees.

Anyone else run into this once you received your license? I’m freaking out a bit because it all sounds so formal and is intimidating. I have no intent to further develop my bookkeeping “practice” at this exact time. I would rather pursue tax. Should I drop the client to avoid all this red tape? What have your experiences been pre vs. post CPA license with your bookkeeping clients and accounting regulations.

[Hitemup27]

See what work requires peer review. In California, you can perform compilations without necessitating a peer review.

A - 93 - 10/25/2011
R - 92 - 1/17/2012
B - 91 - 5/31/2012
F - 93 - 10/1/2012
E - 90 - 11/17/2012

Processing...

[jtcali]

Look into marking the financial statements “For Management Use Only.” If you do that you might be off the hook for peer review.

[Anonymous]

Thanks for the responses! I just read through a bunch of info on that and it does seem to provide the needed exception in TN. I am not sure if the non-profit will agree to the reports being Management-Use Only since they have to report to their donors. Maybe they could make their tax returns and internally prepared info available to donors though rather than the F/S I send them. If they won't agree though I guess I'll need to drop them or decide to deal with the peer review stuff…

[jelly]

Not sure if it's a 501c3 you deal with, but there's a good chance the tax returns may already be publicly available on Guidestar. The BS and the P&L from those technically constitute F/Ss.

If the org is subject to an annual financial statement audit, then the audited financial statements can be signed by the org's ED. The compilations you create for internal board meetings can constitute as “Management use only.” For grant reporting, most of them are signed by the ED, very infrequently signed by financial staff.

Couldn't pass again!

[Author]

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