Nonprofit CPA in Austin, TX
Audits, grant accounting, Form 990 and fractional CFO support for Austin nonprofits that need to know what they can actually spend, with records their funders and board can follow.
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Nonprofit CPA services for growing Austin, TX organizations
A nonprofit can be adding programs and funders and still struggle with a plain question from its board: how much money is available to spend next quarter? Revenue may look healthy, but part of it is restricted to specific programs, part is a contract that pays only after the work is billed, and part is a multi-year pledge. Revenue and spendable cash are not the same number.
That question is where RTN CPA starts as a nonprofit CPA for Austin, TX organizations. We are a certified public accounting firm serving nonprofit organizations, government agencies and districts, and small businesses. For Austin-area nonprofits we offer audits, nonprofit accounting and bookkeeping, Form 990 preparation, grant compliance support and fractional CFO services, with one aim: financial information that leadership, funders and the board can use.
Roman Richardson, CPA, leads audit work and brings more than 20 years of experience focused on nonprofit organizations and governmental districts. Paul J. Stroub, CPA, leads tax work. RTN CPA is based in California and has no office in Texas; work for Austin-area organizations is done remotely.
Audits that start with a clear scope
An audit is more than a deadline. Its purpose is an independent opinion on the financial statements under the applicable reporting framework, so before fieldwork the organization should be clear on who requires it, which period it covers and what report that party expects.
Texas has no general charity registration that sets an audit level: the Texas Attorney General notes that most charities and nonprofit organizations are not required to register with the State. That puts the wording of each award, contract and loan document in charge. Federal money has a fixed rule: a Single Audit is required when federal award expenditures, pass-through funds included, reach $1,000,000 in a fiscal year beginning on or after October 1, 2024 ($750,000 for earlier fiscal years).
- financial statement audits for nonprofit organizations
- Uniform Guidance Single Audits of federal awards
- compliance audits tied to a specific grant or contract
- reviews when a funder or lender accepts limited assurance
- internal control findings explained to management and the board
A review and an audit are different products. An audit gives reasonable assurance and includes testing of balances and transactions; a review gives limited assurance and relies mainly on inquiry and analytical procedures. Confirm in writing which one the funder or lender will accept and when it is due. The preparation list follows: reconciled cash and grant balances, support for restricted gifts and their releases, and documented cost allocations.
The audit also has to stay separate from the work it tests. If RTN CPA keeps an organization's books or fills a finance role there, we check the AICPA independence rules before agreeing to audit it, and sometimes the audit should go to another firm.
Grant accounting for Austin nonprofits
An Austin nonprofit funded by a city contract, two foundation grants, individual donations and earned program fees can face four different reporting expectations in the same month. Each award has its own purpose, period and reimbursement terms, and the books have to reflect all of them. Good grant accounting links budgets, expenses and reports inside the ledger, so a funder update does not mean rebuilding the figures, and allocations documented when they are made explain why a shared cost belongs to a program.
Public funding adds its own steps. Recent Austin Public Health social services solicitations have been open to qualified nonprofits, with applicants registering as City vendors and completing an annual agency threshold application in the City's PartnerGrants system. The Comptroller's Texas Grant Management Standards (TxGMS) apply by statute to state grants to local governments, and many agencies write them into nonprofit grant agreements, so check the agreement itself. Federal funds received through any of these channels count toward a Single Audit.
- award-by-award budgets and expense tracking
- documented allocation of shared costs
- grant reports reconciled to the general ledger
- reimbursement requests for contracts paid after billing
- year-end award schedules ready for the auditor
Form 990 and Texas nonprofit considerations
Form 990 shapes how prospective funders and board members read an organization. Program service descriptions, functional expense classifications and the required schedules deserve attention through the year, not only at the deadline.
Federal tax-exempt status and Texas status are separate questions. Exemption from Texas franchise tax and from sales tax on qualifying purchases comes from an application to the Texas Comptroller, not from the IRS letter. Qualifying exempt organizations may also hold two one-day tax-free sales or auctions each calendar year, which matters when a gala includes an auction. And the Secretary of State may request a periodic report from a nonprofit corporation, no more than once every four years. We prepare the federal return and help you track the Texas items beside it.
- Form 990, 990-EZ and 990-PF
- Schedule A public support calculations
- functional expense classification tied to the ledger
- Form 990-T for unrelated business income
- a checklist of Texas exemption, sales tax and periodic report items
Restricted money, kept apart from cash you can spend
How much can we spend next quarter is an accounting question. Answering it takes restricted and unrestricted net assets tracked separately, a schedule of when each restriction is released, and a cash forecast built on when reimbursements and pledge payments will actually arrive.
The order of work matters. If bank and grant balances have not been reconciled for months, that comes first. Then we help set up a chart of accounts by program and funding source, a close calendar the team can keep, and reports that show available resources, not just total revenue.
- monthly bookkeeping, reconciliations and close
- net assets with and without donor restrictions tracked separately
- release schedules for time and purpose restrictions
- pledge and contract receivable tracking
- a chart of accounts organized by program and funder
Board reports that look ahead, not only back
Boards need more than a statement of activities. A useful package shows which funds are restricted, which programs are over budget, what cash needs are ahead and where estimates, such as the timing of a reimbursement, might change.
Fractional CFO or controller support builds that package along with the budget and forecast behind it. Smaller nonprofits often benefit from defined close steps and a simple board dashboard long before they need a full-time finance executive. For bigger decisions, such as adding a program or taking on a large new contract, our consulting and advisory services can model the effect first.
- cash-flow forecasting by month
- program-level budget-to-actual results
- a board dashboard showing restricted and available funds apart
- internal controls sized to a small finance team
- a regular reporting calendar for the finance committee
Warning signs in a growing nonprofit's books
Growth tends to expose these first. Each one is easier to correct while it is still small.
- Total revenue treated as cash available to spend
- Grant reports rebuilt in a spreadsheet each time a funder asks
- Contract revenue recorded when the check arrives instead of when it is earned
- Gala and auction income booked as one line, with no split between gifts and purchases
- Merchandise sold year-round with no one reviewing Texas sales tax
- One person setting up vendors, paying bills and reconciling the bank
None of these means something has already gone wrong. They do mean the next audit, funder report or board question will take longer to answer than it should.
What to bring to a first conversation
It helps to have the latest financial statements, a list of grants and restricted gifts, recent tax returns and any audit or reporting request from a funder. If the books have not been reconciled, say so. That tells us the sensible order of work.
From there we can discuss whether the situation calls for an audit or review, accounting support, tax work, controls advice or ongoing financial leadership, and whether independence limits which of those RTN CPA should provide. Scope is set out in a written engagement letter before work begins. Firm-wide, RTN CPA brings more than 25 years of experience and more than 100 completed audits.
- the most recent financial statements and Form 990
- a list of grants, contracts and restricted gifts
- any audit, review or reporting request from a funder or lender
- a note on which accounts are reconciled, and through which month
No CPA firm can promise an audit opinion or a filing result. We can tell you plainly where the records stand and what comes next.
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Serving Austin and Central Texas
This page is written for nonprofits in Austin and the surrounding Central Texas area, including Travis and Williamson counties and communities such as Round Rock, Cedar Park, Pflugerville and Georgetown. Work is delivered remotely, and the scope of each engagement is confirmed before it begins. RTN CPA also offers its services to nonprofits in these markets:
Next steps for your Austin nonprofit
Whether an audit is approaching, restricted grants are hard to follow, the bookkeeping needs attention or the Form 990 is due, start with the records you have and the obligation in front of you.
A first conversation covers what is due, who is asking for it and what shape the books are in. From there we can say what a sensible next step looks like, and whether RTN CPA can provide that service for a Texas organization.
Common questions from Austin nonprofits
Do you have an office in Austin?
No. RTN CPA has no office in Texas. The firm is based in California, with addresses in Los Angeles and Roseville, and Austin-area organizations can work with us remotely: documents arrive through our secure file upload, and meetings happen by scheduled phone or video call. Texas has its own rules for out-of-state CPA firms that perform audits and reviews, and we confirm an engagement meets them before accepting it.
Can an Austin nonprofit need an audit even without federal grants?
Yes. Most Texas charities are not required to register with the State, so there is usually no state registration audit to meet. A grant agreement, a city or county contract, a lender, the bylaws or a board policy can still require audited statements, so read each agreement for audit or review language and a due date.
How should we keep restricted funding apart from operating cash?
Record gifts and grants with donor restrictions as net assets with donor restrictions, keep a schedule showing when each restriction is met, and release the funds only when it is. Management reports should then show available resources separately from restricted balances, so the board sees what can actually be spent.
Can a fractional CFO prepare our board reports?
Yes. Board and finance committee reporting is a common part of a fractional CFO or controller engagement, along with the budget and cash forecast behind it. If you will also need an audit, independence is settled first, before the work is divided.
What should an Austin nonprofit review before filing Form 990?
Check that program service descriptions are current, the figures agree with reconciled books, functional expenses are allocated on a documented basis and the required schedules are complete. On the Texas side, confirm that the Comptroller exemption is in place and that any periodic report the Secretary of State requested was filed within 30 days of the date it was sent.
Can our fundraising auction be tax-free in Texas?
Possibly. The Texas Comptroller allows qualifying exempt organizations two one-day tax-free sales or auctions each calendar year, and the two can run back to back for up to 48 hours. Items sold for more than $5,000 are generally not covered, and taxable items sold on other days generally require a sales tax permit and tax collection.
Call (888) 616-8070 or schedule a consultation to get started.
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