In this edition
November 2021

Best Practices When Changing Accounting Software

Review, Compilation, and Agreed-Upon Procedures: Which One Suits Your Needs?

Year-End Payroll Webinar

Client Profile: WisCorp
Best Practices When Changing Accounting Software
Switching accounting systems can be very cumbersome for organizations. Some of the factors to consider before making a change are described below.

Consider Cost

Switching systems can be a very large financial investment. When deciding if it is time to switch systems, consider what the total cost will be and what the end benefit will be after the conversion is completed. Direct cost is one portion of this, but the indirect cost will also need to be considered. The decision of what staff will be involved in the project and how much of their time will be allocated needs to be decided before the system change is made. It can make the conversion more efficient and timely.

Consider Today’s Needs and Long-Term Goals

The flexibility and functionality of the system are also factors to consider. The accounting system needs to be flexible enough to grow with the organization. Organizations should consider their needs now and their long-term goals. If the system will not be a good fit in a few years, it may not be the right choice. The system needs to be able to work for its users. If a new system will not be compatible with other software that is used in everyday operations, it may also not be the right choice.

Consider the Optimal Time to Change

The timing of a system change is also very important. Consider if it makes the most sense to have a clean break and switch right after year-end or if there is different timing that would work better. If the Organization has a fiscal year-end, consider both the year-end close process and the tax filing requirements such as Form W-2s.

Consider Security

Security is a factor to consider with a new accounting system. It’s important to know what the backup processes are, if there is any regular system testing done, and if there are good user access controls. With strong backup and control processes, the chance of having issues with lost data should decrease.

Depending on the knowledge of the staff, outside consultants with expertise in system changes may be the right tool to use. If you have additional questions on other things to consider with system changes, please contact your Hawkins Ash CPAs representative.

Rachel Burrow, CPA
D 608.793.3114
Review, Compilation, and Agreed-Upon Procedures: Which One Suits Your Needs?
So you think you need an audit? Maybe a grantor has requested GAAP financial statements from you or your board of directors wants assurance that the financial records have been accounted for properly. An Audit could help fulfill these requests but perhaps they could also be fulfilled via a Review, a Compilation, or an Agreed-Upon Procedures engagement.

In determining which service best suits your organization's needs, factors such as intended users and level of desired assurance will be key.

External Users

External users of financial statements will often specify what level of assurance they need. For example, annual state reporting is determined by income level.

Minnesota Annual Report filed with the MN Attorney General's Office:

  • Audited financial statements must be submitted by MN nonprofit organizations with at least $750,000 in Total Revenue. 

Wisconsin Charitable Organization Report filed with the WI Department of Financial Information:

  • Audited financial statements must be submitted if the WI nonprofit organization received Contributions of at least $500,000.
  • Reviewed financial statements must be submitted if the WI nonprofit organization received at least $300,000 but not greater than $500,000 in Contributions.

Internal Users

Internal users (such as management and the board) will have much more flexibility in determining which engagement best suits their needs:

Audit: In an audit, the CPA provides the highest level of assurance regarding the financial statements' accuracy. Procedures such as analytics, inquiries, physical inspection, observations, and third-party confirmations are performed. Audits provide reasonable assurance. The CPA will arrive at an opinion, included within their report, which will state if the financial statements present fairly in accordance within the specified basis of accounting (such as generally accepted accounting principles or GAAP).

Review: In a review, the CPA gathers information about the accounting principles and practices used within the organization and the industry in which it operates. The CPA comes to an expectation based upon that information gathering and performs analytical procedures with those expectations in mind. Reviews provide limited assurance. The CPA will arrive at a conclusion, included within their report, which will state whether the CPA is aware of any material modifications that should be made to the financial statements.

Compilation: In a compilation, the accountant's report will detail the basis of accounting used by the organization, explain the responsibility of management to the financial statements, and indicate if key financial information has been omitted from the statements. Compilations provide no assurance. In other words, the CPA will not verify the accuracy or completeness of the financial data within the financial statements.

Agreed-Upon Procedures: The CPA performs specific procedures set forth by the user and reports the findings of those procedures, sometimes with a recommendation on how to correct the finding or prevent future findings. An agreed-upon procedure report is not tied to a set of financial statements. Rather the engagement is often performed to determine if established internal controls or accounting procedures are being followed by the organization. The factual findings will be reported without an opinion or conclusion.

Your organization may in fact need an audit, but it may also have more options available to it. If you have any questions in regards to which service is best for your organization, please contact your Hawkins Ash CPAs representative.

Anna Weinberger
D 507.252.6681
Payroll & Year-End Reporting Webinar
December 2, 2021
12:00 PM - 2:00 PM

As an employer, you know year-end payroll processing and reporting is a complex duty that adds to the stress of closing the books for the year. To ensure a smooth, error-free year, please join us for our Payroll and Year-End Reporting Webinar. This webinar is offered to bookkeepers, business owners and payroll professionals free of charge.

We will address compliance issues of year-end payroll processing and reporting and bring you up to date on the latest changes that affect the close of 2021 and beginning of 2022.
Client Feature: WisCorps
WisCorps is a nonprofit conservation corps headquartered in La Crosse, WI that engages young adults and youth in conservation projects and nature education. WisCorps began in 2009 with a single conservation crew of young adults on a one-week project and a $5,000 budget. The crew repaired a trail that was displaced after a landslide. The project received the attention of many of its present-day partners, and, in 2010, WisCorps gained the support to activate 32 young adults in 23 weeks of conservation work. 
Today, WisCorps recruits 80 corpsmembers from Wisconsin and across the nation annually to serve on crews that repair hiking trails and natural areas and restore natural habitats. These crews of young adults serve all across Wisconsin in addition to a few projects in Nation Parks and Forests.

WisCorps corpsmembers range from16 and 25 years of age. In addition to conservation work, WisCorps leaders mentor these young adults in a very transitional time of their lives.

“Some corpsmembers are in college, others are taking a gap year to figure out the next step of their lives,” says Matt Brantner, WisCorps Executive Director. “Development of a corpsmember is as important as the conservation work.”
Corpsmembers receive a living stipend funded by the National AmeriCorps, and at the end of their service receive an education award ranging from $1,600 to $6,000 that can be put toward college tuition or school loans. 

The other half of WisCorps’ work is focused on connecting people to nature and fostering a love for the environment. Through school field trips, summer camps, and lecture series, WisCorps reaches people from ages three to eighty. The WisCorps headquarters is adjacent to thousands of acres of natural habitat which include LaCrosse’s Myrick Park, Hixon Forest, and the La Crosse River Marsh. WisCorps utilizes these lands to educate and instill the desire to preserve and protect nature. 

In the next three years, WisCorps anticipates major expansion. The organization will enact district offices throughout Wisconsin, taking a regional approach to conservation service. WisCorps will also take a hyperlocal approach to environmental education in La Crosse with the use of the Urban Ecology Model from the Milwaukee Urban Ecology Center. 
If you are interested in learning more about WisCorps and its mission of conservation and education visit its website or follow the organization on Facebook.
More Resources from CPA-HQ
What Form 990 to File?




The majority of tax-exempt organizations are required to file an annual return called a Form 990. Four different Form 990s are available for filing. The Form an organization should file depends on its financial activity.
The Board Member Role and Financial Responsibilities


Boards generally consist of many individuals with varied and diverse backgrounds who share the same passion for the organization and want to share their expertise with the organization. Although being part of a board can be a deeply moving and rewarding experience, it also comes with significant responsibility.
Recap of Requirements and Common Errors in Functional Expense Reporting

With the implementation of FASB Accounting Standards Update 2016-14 several years ago many organizations were introduced to the concept of functional expense reporting. Now that we are a few years out from implementation, it is helpful to take a look back at the concepts and ensure your organization is properly reporting your functional expenses.
Hawkins Ash CPAs
www.HawkinsAsh.CPA
info@hawkinsashcpas.com