Counting on Calibre
Seasoned professionals chatting about current accounting, audit, tax, and operational issues germane to tax-exempt entities including nonprofits, associations, employee benefit plans, labor unions, and other business enterprises.
Counting on Calibre
Why Your Form 990 Doesn’t Match Your Financial Statements
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If you’ve ever wondered why your audited financial statements don’t line up exactly with your Form 990, you’re not alone. In this episode, Calibre Partner Lila Leno and Tax Director Erin Cranmer break down how functional expenses are reported under GAAP versus tax rules—and why differences can happen, even when the underlying data is the same, with a closer look at what’s driving those differences behind the scenes.
They also share what auditors look for, where organizations tend to run into trouble, and how to approach allocations in a way that holds up under both audit and public scrutiny.