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Audits are a standard part of nonprofit operations. Whether driven by donor requirements, regulatory thresholds, or board governance policies, many nonprofits will eventually face the audit process. For organizations already stretched thin managing programs, fundraising, and compliance, an upcoming audit can feel overwhelming. But there’s a way to approach it strategically — and reduce the stress significantly.

Pre-audit bookkeeping is an often-overlooked tool that can make the audit process smoother, more accurate, and less costly. It’s about doing the prep work: cleaning up your books, reconciling key records, and ensuring financials are audit-ready — before the auditor even shows up.

At Presti & Naegele , we’ve helped nonprofits manage this process for over 40 years. Our specialized pre-audit services bridge the gap between a nonprofit’s internal records and what auditors need to see. It’s about more than just compliance — it’s about protecting your mission by building strong financial integrity.

Let’s take a closer look at why pre-audit bookkeeping is crucial for nonprofits, and how to get it right.

Why Nonprofit Audits Require a Different Approach

Audits are not just about reviewing numbers — they’re about ensuring financial transparency and accountability, especially in the nonprofit sector.

Unlike for-profit businesses, nonprofits are mission-driven and funded primarily through donations, grants, and memberships. This creates a unique set of accounting and reporting obligations.

Some of the most common reasons nonprofits face audits include:

• Annual revenue thresholds (often $750,000+ in federal funding)
• Grantor requirements (especially from government agencies or large foundations)
• Internal policies (set by boards or bylaws)
• State-level nonprofit compliance obligations

During an audit, funders and board members want to ensure that restricted funds were used appropriately, expenses were properly allocated to programs, and no red flags exist in internal controls.

In this context, pre-audit bookkeeping becomes essential . It allows organizations to take a proactive stance — cleaning up and organizing financials before auditors start asking questions.

Presti & Naegele works with a wide range of mission-driven clients, including arts organizations, healthcare entities, religious institutions, and membership-based nonprofits. Many of these clients require not just audit support, but a strategic partner that understands nonprofit audit nuances — and that starts with pre-audit preparation.

What Is Pre-Audit Bookkeeping?

Pre-audit bookkeeping is the process of reviewing and organizing your nonprofit’s financial records prior to a formal audit. It involves reconciling discrepancies, ensuring compliance with Generally Accepted Accounting Principles (GAAP), and preparing key documentation in line with auditor expectations.

In short, it’s the cleanup phase — but done in a strategic and informed way.

How Pre-Audit Bookkeeping Differs from Regular Bookkeeping

• Standard bookkeeping tracks and records daily financial activity (income, expenses, payroll, etc.).
• Pre-audit bookkeeping steps back to review those records for accuracy, completeness, and compliance — and prepares documentation auditors will need to see.

It’s not just administrative. Done correctly, this step can uncover gaps that might otherwise cause audit delays, trigger compliance concerns, or undermine funder trust.

With Presti & Naegele’s nonprofit accounting team, this process is structured and efficient. We understand what auditors look for, so we tailor the prep accordingly — saving you time and helping you avoid unnecessary issues.

Key Benefits of Pre-Audit Bookkeeping for Nonprofits

Let’s break down the real-world benefits of implementing pre-audit bookkeeping as part of your organization’s annual cycle.

1. Reduces Audit Time and Cost

When financials are disorganized, auditors spend more time requesting and reviewing documentation — and the costs can add up. Clean, reconciled books streamline the audit process, which often reduces your final invoice from the audit firm.

2. Minimizes Errors and Misstatements

Even well-run nonprofits can make errors — missed entries, misclassified expenses, or uncleared transactions. Identifying and correcting those in advance reduces the chance of flagged findings or restatements in the audit report.

3. Enhances Internal Controls

Pre-audit preparation highlights internal control weaknesses, like incomplete segregation of duties or inconsistent authorization practices. Addressing these before an audit demonstrates proactive governance and strengthens your financial infrastructure.

4. Eases Stress on Staff

Audits often coincide with peak operational periods, and they pull staff away from day-to-day responsibilities. Pre-audit planning means fewer last-minute document hunts, lower stress levels, and more time to focus on your mission.

5. Builds Donor and Board Confidence

A clean audit builds credibility. When funders and board members see that your financials are organized and audit-ready, it increases their confidence in your stewardship — and may open the door to future support.

These are just a few of the reasons clients turn to Presti & Naegele for audit preparation support. We view this work not just as a compliance task, but as a strategy to protect and strengthen your nonprofit’s reputation.

How Presti & Naegele Supports Nonprofits with Pre-Audit Bookkeeping

Our team at Presti & Naegele specializes in nonprofit accounting — it’s not just one of our services, it’s a core area of focus. We've worked with exempt organizations of every type since 1982, and we know what’s at stake when audit season rolls around.

What We Do:

• Review and clean your books to ensure they align with nonprofit GAAP
• Prepare key schedules and reconciliations (bank, grant, payroll, etc.)
• Organize supporting documentation auditors will request
• Evaluate and advise on internal controls
• Collaborate with your audit firm to streamline their review

We often work as an extension of your internal team — providing the bandwidth and nonprofit expertise you may not have in-house. Our goal is to make the audit process smooth, predictable, and effective.

We also provide Form 990 preparation , another crucial piece of nonprofit compliance that draws on much of the same data. This creates consistency across your audit and IRS reporting — a win for your financial team and your board.

Learn more about our nonprofit accounting and advisory services here .

Case Examples of Pre-Audit Bookkeeping in Action

Here’s how our pre-audit services have helped nonprofit clients overcome challenges and streamline audits:

Case 1: Arts Nonprofit Avoids First-Time Audit Pitfalls

A small museum secured a major grant that triggered their first required audit. They had limited in-house accounting support and were unsure how to start.

P&N provided:

• Cleanup of two years of financials
• Grant tracking setup and fund-specific reconciliation
• Full pre-audit package and liaison support with the auditor

Result: The audit was completed on time with no findings, and the client retained their grant funding for the next cycle.

Case 2: Healthcare Organization Lowers Audit Costs

A regional healthcare nonprofit had been paying steep audit fees due to disorganized records.

P&N stepped in to:

• Perform monthly reconciliations in advance
• Provide grant-specific reporting in the format required by auditors
• Support year-end close to eliminate last-minute work

Result: The audit firm reduced their billable hours, and the client saved over $8,000 on audit prep in the first year alone.

Case 3: Religious Entity Avoids Compliance Flags

A mid-sized religious nonprofit had issues with internal controls and inconsistent expense documentation.

With P&N’s help:

• Expense policies were reviewed and updated
• Discrepancies in payroll reporting were corrected
• Board minutes and policies were aligned with best practices

Result: The audit was clean, and the board gained renewed confidence in the organization’s governance.

These stories show how Presti & Naegele not only prepares clients for audit — but helps them operate with greater financial confidence year-round.

Key Pre-Audit Bookkeeping Tasks Nonprofits Should Prioritize

If your nonprofit wants to start pre-audit preparation internally, here are the key areas to focus on:

1. Year-End Closing Procedures

• Ensure all transactions are recorded through fiscal year-end
• Close temporary accounts and roll forward balances

2. General Ledger Review

• Verify account balances for accuracy
• Look for unusual variances or misclassifications

3. Bank and Fund Reconciliation

• Reconcile all bank, credit card, and investment accounts
• Reconcile grant funds to ensure restricted dollars were spent properly

4. Documentation Gathering

• Collect vendor contracts, grant agreements, donation records
• Organize board minutes, policies, and payroll tax filings

5. Internal Control Check

• Review access controls, approval workflows, and segregation of duties
• Document policies around key processes (donations, disbursements, reimbursements)

These tasks set the foundation for a successful audit. But many nonprofits don’t have the time or tools to manage them alone — which is why many organizations lean on Presti & Naegele to fill the gap.

When Should Nonprofits Start Pre-Audit Bookkeeping?

The Ideal Timeline: 3–6 Months Before the Audit

Starting early gives you time to uncover and fix issues without scrambling. The larger or more complex your organization, the earlier you should begin.

Annual Integration

Rather than waiting for year-end, some nonprofits integrate audit prep into their monthly or quarterly accounting cycle. This reduces surprises and builds stronger financial habits over time.

Tools That Help

• QuickBooks for Nonprofits : Easily manage classes, funds, and restricted grants.
• Checklists : Create a recurring pre-audit checklist to ensure nothing is missed.
• Audit Calendars : Map out deadlines and assign responsibilities to keep the process on track.

Need help setting up any of the above? Presti & Naegele offers QuickBooks services tailored for nonprofits, and we can help implement systems that support both everyday bookkeeping and audit prep.

Conclusion: Staying Ahead of the Audit Curve

Pre-audit bookkeeping isn’t just about ticking boxes. It’s about protecting your mission, your funding, and your future.

By proactively cleaning and organizing your financials, your nonprofit gains control over the audit process — not the other way around. You reduce risk, save money, and show your stakeholders that financial integrity is a priority.

At Presti & Naegele , we help nonprofit organizations build audit-ready systems that stand up to scrutiny — and support long-term success.

Ready to prepare for your next audit with confidence?

Connect with our nonprofit accounting experts today and let’s get started on a pre-audit plan that works for your organization.

Hiring a forensic accountant isn’t usually at the top of a business owner’s to-do list—until it’s absolutely necessary. But by the time many companies seek forensic accounting services, financial damage has already been done. Whether it’s internal fraud, a legal dispute, or suspicious discrepancies in your records, recognizing when to engage a forensic accountant is critical to minimizing risk and protecting your business.



In this article, we’ll explore when and why you should hire a forensic accountant, how to spot red flags early, and the key scenarios where expert financial investigation makes all the difference. If you're unsure whether it’s time to bring in help, Presti & Naegele's forensic accounting team offers clear, confidential guidance rooted in decades of investigative experience.

What a Forensic Accountant Actually Does (in 2025)

A forensic accountant is far more than just an advanced number cruncher. While traditional accountants focus on maintaining and reporting financial records, forensic accountants specialize in analyzing those records to uncover misconduct, fraud, or hidden patterns that may signal financial irregularities.

At Presti & Naegele , forensic accounting involves:

• Fraud Detection & Investigation: Identifying signs of theft, embezzlement, or financial manipulation
• Litigation Support: Assisting in legal proceedings with detailed financial analysis and expert testimony
• Asset Tracing: Finding hidden or misappropriated assets during disputes, divorces, or business breakups
• Compliance Audits: Ensuring financial records and processes meet regulatory standards

This work often supports law firms, business owners, stakeholders, and government entities who need objective, fact-based financial insights during complex scenarios.

But forensic accounting isn’t just about catching fraud once it's happened. Today, it's also a preventative tool —used to identify weaknesses in internal systems, test financial integrity, and assess business risks before a crisis unfolds.

The Real Cost of Waiting Too Long

The biggest mistake companies make is waiting until there's an obvious problem before reaching out to a forensic accountant. By that point, damage may already be irreversible.

Consider these scenarios:

• A partner has siphoned funds from the company for years before anyone notices
• Payroll fraud continues unchecked due to lax oversight
• A business enters litigation without the financial documentation to support their case
• An investor walks away after spotting red flags in your financials that you missed

Each of these outcomes is avoidable—if a forensic accountant is brought in early enough. The reality is, forensic accountants can help you long before you're facing a legal crisis .

The cost of hiring a forensic accountant early is often far less than the financial losses, legal fees, reputational harm, and operational setbacks that come from acting too late. That’s why Presti & Naegele emphasizes proactive forensic advisory , not just damage control.

10 Warning Signs You Might Need a Forensic Accountant

You don’t have to wait for a lawsuit or a whistleblower tip to consider forensic accounting. Here are 10 common red flags that indicate it might be time to talk to an expert:

1. Unexplained discrepancies in financial statements or accounting records
2. Sudden lifestyle changes in employees with financial responsibilities
3. Duplicate or suspicious vendor payments that don't match purchase records
4. Frequent adjustments or write-offs without clear justification
5. Payroll inconsistencies , such as ghost employees or inflated hours
6. Missing or incomplete documentation during audits or internal reviews
7. Reluctance to provide financial transparency from certain departments
8. Conflicts among business partners or shareholders over financial decisions
9. Anonymous complaints or tips about unethical financial behavior
10. High-pressure financial goals that incentivize manipulation

If any of these issues are happening—or even suspected— consulting Presti & Naegele can help determine if deeper investigation is warranted. Often, what starts as a “minor inconsistency” reveals a more systemic issue.

Common Scenarios Where Forensic Accounting Makes the Difference

Forensic accounting is not just for massive corporations or headline-grabbing scandals. Small and mid-sized businesses, family enterprises, and even non-profits benefit from timely financial investigation.

Here are situations where bringing in a forensic accountant can save time, money, and legal risk:

1. Business Partner Disputes

Disagreements over money between co-founders or partners can escalate quickly. Forensic accountants provide objective analysis of revenue streams, expense records, and asset allocations to help resolve conflicts and protect business continuity.

2. Divorce & Family-Owned Business Conflicts

In high-asset divorce proceedings, especially when a family business is involved, one party may attempt to conceal income or undervalue assets. Forensic accounting can identify irregular transfers, hidden accounts, and undisclosed assets.

3. Suspected Embezzlement or Internal Fraud

Employees in financial roles may exploit weak internal controls. Forensic accountants use transaction tracing and data analytics to uncover fraudulent behavior and provide legally admissible evidence.

4. Preparing for Acquisition or Investment

Buyers or investors may want assurance that your books are clean. A forensic accounting review shows transparency and mitigates the risk of future legal exposure.

5. Tax Audit or IRS Disputes

Facing a government audit? Forensic accountants can help interpret financial records, substantiate deductions, and negotiate with tax authorities based on validated data.

6. Vendor or Procurement Abuse

Kickbacks, bid rigging, or overbilling can go undetected in procurement-heavy operations. A forensic accountant can examine contract history and payment flows to identify manipulation.



Each of these use cases is one Presti & Naegele has handled—tailoring investigative methods to the situation at hand.

How a Forensic Accountant Works With Your Legal or Finance Team

Forensic accounting isn’t performed in isolation. Often, a forensic accountant becomes part of a larger advisory or legal team during an active investigation or dispute.

Here’s how that collaboration usually works:

• With attorneys: Forensic accountants organize financial evidence, assist with discovery, and provide courtroom testimony as expert witnesses. They translate complex records into language judges and juries can understand.
• With finance teams: They audit internal procedures, assess risk exposure, and help refine internal controls.
• With law enforcement or regulators: They prepare reports and documentation that comply with legal standards and chain of custody protocols.

At Presti & Naegele , our team is highly experienced in cross-functional work—whether that means preparing exhibits for a courtroom or coordinating with internal auditors.

What to Expect from a Consultation With Presti & Naegele

Not every consultation results in a full forensic investigation. Sometimes, a quick diagnostic or financial review is all that’s needed to clarify whether deeper work is required.

Here’s what the consultation process looks like with Presti & Naegele:

1. Initial Discovery Call: Confidential conversation about your concern, timeline, and goals
2. Document Review: Preliminary evaluation of available financial records and transaction data
3. Risk Assessment: Identification of potential fraud indicators, control weaknesses, or litigation exposure
4. Recommended Plan of Action: Next steps may include a detailed forensic review, compliance audit, asset tracing, or expert reporting

The process is discreet, methodical, and always tailored to your business’s unique structure. Whether you're facing urgent concerns or just want peace of mind, schedule a consultation today .

Conclusion: Don’t Wait for the Fallout

The best time to hire a forensic accountant isn't after fraud has happened—it’s before .

Whether you're running a business, involved in a dispute, or preparing for a major financial decision, forensic accountants offer clarity and protection when you need it most. Early intervention prevents long-term damage, improves your legal positioning, and strengthens your internal financial operations.

Presti & Naegele is here to support businesses, legal teams, and individuals with clear, objective, and confidential forensic accounting services. Our goal is to help you detect risk before it becomes a crisis—and resolve financial issues with transparency and precision.



Don’t wait for the warning signs to become headlines. Schedule your forensic accounting consultation today.

The more wealth you build, the more you have to lose — and the more strategic you need to be about protecting it. Whether you’re a business owner, an investor, or a high-earning professional, lawsuits, creditors, and unexpected liabilities can put your personal and business assets at risk.

Asset protection isn't just for the ultra-wealthy or corporations — it's for anyone with something to lose. At Presti & Naegele , we help individuals and businesses create forward-thinking strategies to safeguard wealth and ensure long-term security. Our approach is legal, structured, and personalized to fit each client's unique situation.



In this guide, we’ll break down the most effective asset protection strategies for high-net-worth individuals , business owners, and anyone looking to secure their financial legacy.

1. What Is Asset Protection and Why Does It Matter?

Asset protection is the process of legally structuring your financial holdings in a way that shields them from potential threats — including lawsuits, creditors, or divorce settlements. The goal is to keep your assets safe without violating any laws or engaging in risky behavior.



Effective asset protection is about proactive planning , not reactive scrambling. Once a lawsuit is filed or a judgment is in motion, it's usually too late. That’s why it’s critical to take steps before there’s a threat on the horizon.

Who benefits from asset protection?

• Business owners and entrepreneurs
• Real estate investors
• High-net-worth individuals and families
• Physicians, attorneys, and other professionals in high-risk fields
• Individuals going through divorce or business litigation

With the guidance of a seasoned advisory team like Presti & Naegele , asset protection becomes a long-term strategy — not just a short-term fix.

2. Common Threats to Personal and Business Assets

Understanding what you're protecting against is the first step to building an effective strategy. Here are the most common threats that put personal and business wealth at risk:

1. Lawsuits

Whether you're running a business or simply own property, lawsuits can come from almost anywhere — customers, employees, vendors, tenants, or even neighbors.

2. Creditors and Debt

Outstanding debts from personal loans, business liabilities, or guarantees can give creditors access to your assets if things go south.

3. Divorce

Divorce proceedings often involve the division of significant assets. Without proper structuring, your wealth may be vulnerable.

4. Tax Liabilities

Mistakes in tax filing or aggressive deductions can lead to audits and substantial penalties, putting both business and personal assets at risk.

5. Economic Volatility

Recessions, industry changes, or market downturns can quickly diminish unprotected assets.

At Presti & Naegele , we conduct holistic risk assessments to identify your specific exposure areas and tailor a strategy around them.

3. Legal and Effective Asset Protection Strategies

Let’s be clear: asset protection is not about hiding money or evading obligations. It's about using legal structures and strategies to create separation between your assets and potential risks.

Here are the most common legal tools we use at Presti & Naegele :

1. Limited Liability Companies (LLCs)

LLCs help separate personal assets from business liabilities. They’re essential for entrepreneurs, real estate investors, and independent contractors.

2. Trusts

Trusts — particularly irrevocable trusts — allow you to move assets out of your name legally, which can help shield them from lawsuits or creditors.

3. Family Limited Partnerships (FLPs)

FLPs are used to consolidate family assets and provide protection while allowing control to remain within the family.

4. Asset Titling and Segregation

How you title your assets (individually, jointly, under a trust, etc.) can significantly impact their vulnerability.

5. Insurance

A solid insurance policy — from liability coverage to umbrella policies — is a first line of defense.

When implemented with proper legal guidance and ongoing oversight, these tools become powerful layers of protection. Presti & Naegele builds strategies that integrate multiple structures to maximize security and compliance.

4. Asset Protection Strategies for High-Net-Worth Individuals

High-net-worth individuals face unique challenges when it comes to asset protection. More visibility often means more risk — and higher value assets call for more complex strategies.

Here’s how Presti & Naegele addresses those needs:

• Asset Segregation : Dividing assets among entities to limit exposure
• Advanced Trusts : Domestic asset protection trusts, spendthrift trusts, dynasty trusts
• Integrated Estate Planning : Ensuring wealth transfer and protection go hand-in-hand
• Tax-Efficient Structuring : Minimizing tax liability while securing your assets
• Privacy Strategies : Keeping ownership details private through layered structures

The key is to approach asset protection as part of a broader wealth strategy — not as a standalone solution.

5. Asset Protection Planning for Business Owners

Business owners are particularly vulnerable to lawsuits, debt, and operational liabilities. Without careful planning, personal wealth can easily get caught in the crossfire.

At Presti & Naegele , we help business owners:



1. Separate Personal and Business Assets

This includes setting up proper legal structures like S Corps, C Corps, or LLCs, depending on the business type and goals.

2. Use Holding Companies

Holding companies allow business owners to separate operating risk from asset ownership.

3. Draft Solid Operating Agreements

Clear agreements between partners reduce disputes and offer legal protection in the event of lawsuits or dissolutions.

4. Plan for Succession and Exit

Ownership transition strategies — including buy-sell agreements — protect your interests if a partner leaves or passes away.

Asset protection for entrepreneurs is not just about risk reduction — it's also about business continuity and wealth preservation. Presti & Naegele brings the legal and tax expertise to make this happen.

6. Integrating Asset Protection With Estate Planning

Asset protection and estate planning often get treated as separate areas — but combining them can significantly strengthen both.

At Presti & Naegele , we help clients structure their estate in a way that:

• Shields assets from creditors before they become part of the estate
• Minimizes estate taxes and probate exposure
• Ensures long-term protection for beneficiaries
• Prepares for life events like incapacity, remarriage, or blended families

Whether you're passing on a family business or a portfolio of real estate, integrating estate and asset protection planning ensures your wealth stays in the right hands — legally and efficiently.

7. The Role of Ongoing Monitoring and Adjustment

One of the most overlooked components of asset protection? Ongoing oversight.

Laws change. Your business grows. Family dynamics shift. The strategy that worked five years ago may not serve you today.

That’s why Presti & Naegele offers adaptive asset protection strategies with built-in review processes. We help clients stay ahead of:

• Changes in tax code or state laws
• Business restructures or expansions
• Divorce, inheritance, or health changes
• Shifting market conditions

Your wealth is dynamic. Your protection plan should be, too. Our team is here to adjust your strategy as life evolves.

8. Why Work With Presti & Naegele for Asset Protection?

Asset protection is not a one-size-fits-all product. It's a highly personalized strategy that requires a balance of legal compliance, tax efficiency, and long-term thinking.

At Presti & Naegele , we offer:

• Holistic Planning : We consider every aspect of your financial picture — personal, business, tax, and estate
• Deep Expertise : Decades of experience navigating asset protection in high-stakes scenarios
• Customized Strategies : Every plan is tailored to your goals, risk profile, and asset structure
• Proactive Adjustments : We monitor changes and update strategies accordingly
• Ongoing Support : We're not just a one-time service — we're a long-term partner in protecting your legacy

Asset protection is about more than peace of mind — it’s about ensuring that what you’ve built is preserved and positioned for the future.

Secure Your Wealth With a Custom Asset Protection Plan

Don’t wait until your assets are under threat to start protecting them. The best time to put a plan in place is when things are going well — and you have time to do it right.

Whether you're looking to shield business assets, integrate your estate plan, or protect family wealth for the next generation, the team at Presti & Naegele is ready to help.

Start the conversation today — schedule a consultation and take the first step toward securing your financial future.

Owning a franchise comes with a lot of advantages. You’ve got brand recognition from day one, a built-in customer base, proven systems, and support from a corporate team. But even the strongest brand and the best location can’t protect a franchise owner from one major problem: hidden costs that quietly eat into profits.



These aren’t the obvious expenses like rent or payroll. We’re talking about the less-visible financial blind spots—misclassified startup costs, untracked royalty and ad fees, state tax liabilities, and incomplete financial reports. Many franchise owners don’t realize these issues exist until they start seeing shrinking margins, unexpected tax bills, or a lack of usable data to make smart business decisions.

This is where accounting for franchises goes beyond basic bookkeeping. It’s not just about keeping the books balanced; it’s about ensuring every dollar is tracked, every fee is accounted for, and every tax advantage is used correctly. At Presti & Naegele , we specialize in helping franchise owners navigate these challenges and protect their profits from unnecessary leaks.

What Makes Franchise Finances Uniquely Complex?

 Franchise ownership brings a lot of benefits—but it also introduces a unique set of financial challenges that traditional small businesses don’t face. Most franchise owners are dealing with an entirely different accounting structure, which includes:

• Upfront fees that need to be amortized, not deducted
• Ongoing royalty and advertising fees tied directly to revenue
• State-specific franchise taxes
• Strict financial reporting requirements set by franchisors

That’s why accounting for franchises requires a specialized approach. It’s not just about understanding general business accounting—it’s about understanding the franchising model itself. Without a strategy for managing these variables, franchise owners can easily lose track of cash flow, miss tax opportunities, and fall out of compliance with both franchisor and government standards.

At Presti & Naegele , we understand how franchise financials work at every stage—from startup to expansion—and we help clients manage the process efficiently.

Startup Costs: More Than Just the Franchise Fee

Many new franchisees walk into ownership thinking their “startup costs” are covered by the initial franchise fee. But in reality, that fee is just the beginning.

What Counts as Startup Costs?

When launching a franchise, you’re likely to incur a mix of one-time and ongoing costs:

• Franchise Fee (usually not deductible upfront—more on that below)
• Training Costs from the franchisor
• Equipment and Inventory specific to the brand
• Leasehold Improvements and Fixtures
• Licensing and Legal Fees

Here’s the catch: most of these expenses need to be categorized correctly for tax purposes. A common mistake is trying to deduct the franchise fee all at once. That’s not allowed, because it’s considered payment for an intangible asset with long-term value. Instead, it has to be amortized over 15 years .

Similarly, improperly allocating costs between depreciable equipment and intangible assets can significantly affect your tax bill. Working with an accountant who understands the structure of franchise startup costs means you’re more likely to claim allowable deductions where possible—and avoid red flags on your tax return.

We walk our clients through this process step-by-step at Presti & Naegele , helping them structure startup costs in a way that supports better tax outcomes and long-term planning.

Ongoing Fees That Drain Profit if Not Tracked Properly

After the startup phase, your biggest cost issues may not be the ones you notice right away. It’s the recurring monthly fees that can quietly erode profitability if not managed closely.

Royalty Fees

Most franchises charge a royalty fee based on a percentage of your gross revenue. This can range from 4% to 12% or more , depending on the brand.

Here’s why this is important: as your revenue grows, so does the fee. Without a forecasting system in place, you may end up paying significantly more in royalties than expected, which can throw off cash flow and budgeting.

Advertising Fees

In addition to royalties, franchisees are usually required to contribute to a brand-wide marketing fund. This is also typically a percentage of revenue—often around 2% —and it’s collected monthly.

Many franchise owners lump this in as a “marketing expense,” but that’s misleading. It’s a contractual obligation, and it should be tracked separately from your local advertising efforts. Failing to do this can lead to budgeting errors and confusion around the return on investment for your local marketing spend.

At Presti & Naegele , we help franchisees implement clear financial systems that separate these fees, forecast their impact, and ensure they’re reflected accurately in monthly reports.

The Tax Side: State Franchise Tax, Deductions & Compliance Risks

What Is the State Franchise Tax?

Many states charge a franchise tax , which is separate from income tax. The rate and structure vary by state—it might be based on income, net worth, or even just the privilege of doing business in that state.

For multi-unit franchisees operating across different regions, understanding these tax rules becomes even more important. Getting it wrong can result in fines, audits, or overpayments .

Common Mistakes We See

• Paying unnecessary penalties due to late filings or incorrect forms
• Missing allowable deductions due to poor cost categorization
• Overreporting revenue by failing to exclude refunded sales or rebates

The best way to protect your bottom line is to have a tax advisor who’s experienced with the franchise model. At Presti & Naegele , we offer tailored tax planning and compliance services that help franchise owners reduce liability and stay audit-ready.

Bookkeeping & Record-Keeping: Where Profits Are Won or Lost

Franchisees often rely on a general bookkeeper or try to manage their records in-house. But the difference between a solid bookkeeping system and a weak one can be tens of thousands of dollars a year in missed opportunities.

Why Bookkeeping Matters More for Franchises

Franchise models typically require more structured financial reporting than independent businesses. Tracking revenue, expenses, royalties, and marketing fees all in one system ensures:

• Accurate tax filing
• Budgeting and cash flow management
• Fulfilling franchisor reporting obligations

A one-size-fits-all accounting platform doesn’t always cut it. That’s why we offer QuickBooks services specifically tailored to franchise owners, helping them set up category-specific reports, automate fee tracking, and stay current on all financial inputs.

If your bookkeeping system isn’t giving you clear, actionable data each month, it’s time for a change. We help franchise owners install systems that work.

See our full list of franchise accounting solutions here .

Franchisor Requirements: Meeting FDD and Financial Reporting Obligations

One of the most overlooked aspects of franchise ownership is the Franchise Disclosure Document (FDD) —and specifically, the financial reporting obligations outlined in it.

What Your Franchisor Might Require

• Quarterly or annual financial statements
• Proof of revenue reporting for royalty fee verification
• P&L statements for benchmarking across franchise units

Failing to meet these obligations can create friction with your franchisor—and in some cases, may even put your franchise agreement at risk.

At Presti & Naegele , we support franchisees by preparing compliant, consistent financial reports that meet both franchisor and tax authority requirements. Our advisory team also helps clients interpret these reports to identify areas for improvement, cost reduction, or growth planning.

How Strategic Accounting Improves Franchise Growth

Strategic accounting is more than just compliance—it’s a tool for making better business decisions and accelerating growth.

By tracking and managing the right metrics, franchise owners can:

• Improve profitability by reducing unnecessary costs
• Make smarter hiring and investment decisions
• Qualify for loans or financing with clean financials
• Expand into new territories with better financial forecasting

Franchisees who treat accounting as a growth function—not just a tax-season task—tend to be more successful in the long run.

If you’re looking for a partner that understands the unique financial dynamics of franchise ownership , we’re here to help. Presti & Naegele has worked with franchisees across a wide range of industries, helping them build scalable systems and improve financial outcomes.

Ready to Stop Profit Leaks in Your Franchise?

Whether you’re launching your first franchise or managing multiple locations, strategic accounting can make the difference between breaking even and building real long-term value.

At Presti & Naegele , we don’t just handle the numbers—we help you understand what they mean, where your money is going, and how to get more of it back. From startup planning to tax strategy and ongoing advisory, our team is here to support your success.

Let’s talk. Schedule a consultation today and find out how much more your franchise could be earning with the right accounting partner.

Running a medical practice involves more than just providing excellent patient care. Behind the scenes, healthcare professionals must navigate complex financial challenges, including tax compliance, insurance reimbursements, and cash flow management. Without a strategic approach to accounting, medical practices risk financial inefficiencies, reduced profitability, and compliance issues.

Proper financial management is critical for ensuring the long-term success of a practice, whether it’s an independent physician office, a group specialty practice, or a surgical center. The right accounting strategies can help medical professionals maximize revenue, optimize expenses, and stay compliant with ever-changing regulations.

At Presti & Naegele , we specialize in accounting and advisory services tailored to medical practices. Our expertise helps healthcare professionals streamline their financial operations, reduce tax liabilities, and make informed business decisions that lead to sustainable growth. In this article, we’ll explore key accounting strategies to help medical practices thrive financially.

1. Why Medical Practices Need Specialized Accounting

 Accounting Challenges Unique to Medical Practices

Medical practices face financial challenges that go beyond standard business accounting. Some of the most significant include:

• Complex Insurance Reimbursements: Navigating insurance claims and payment delays can create cash flow bottlenecks.
• Strict Regulatory Compliance: Medical practices must adhere to HIPAA, Medicare, and tax regulations, which are frequently updated.
• Fluctuating Revenue Streams: Revenue can be inconsistent due to reimbursement delays, patient billing issues, and seasonal variations in patient visits.
• High Overhead Costs: Salaries, equipment, rent, and medical supplies contribute to significant fixed expenses.

A specialized accounting approach ensures that medical practices remain financially stable while maximizing revenue and maintaining compliance.

The Benefits of Working with Expert Medical Accountants

Partnering with an experienced medical accountant like Presti & Naegele provides several advantages:

• Strategic Tax Planning: Reducing taxable income through deductions and smart financial structuring.
• Optimized Cash Flow Management: Implementing efficient billing and collections strategies.
• Compliance Assurance: Ensuring adherence to ever-changing healthcare regulations.
• Long-Term Financial Growth: Providing financial insights that help practices scale efficiently.

2. Tax Strategies to Optimize Revenue

Taxes are one of the largest financial burdens for medical practices. However, with the right strategies, practices can significantly reduce their tax liabilities.

Choosing the Right Business Entity

The structure of a medical practice determines its tax obligations and liability protections. Common business entities include:

• S Corporation (S-Corp): Allows owners to pay themselves a salary and take additional income as distributions, reducing self-employment taxes.
• Limited Liability Company (LLC): Offers flexibility in tax treatment and liability protection.

An experienced tax advisor can help determine the best structure for your specific practice.

Maximizing Deductions on Business Expenses

Medical practices can reduce taxable income by properly categorizing expenses, such as:

• Medical Supplies & Equipment: Including diagnostic tools, examination tables, and lab equipment.
• Office Rent & Utilities: Deductible if used exclusively for the practice.
• Employee Salaries & Benefits: Wages, health insurance, and retirement plan contributions are deductible.
• Professional Development: Costs for continuing education and medical conferences.

Leveraging Depreciation for Equipment Purchases

Medical equipment can be a significant investment, but practices can benefit from:

• Section 179 Deduction: Allows immediate expensing of qualified equipment instead of depreciating over several years.
• Bonus Depreciation: Enables a practice to deduct a large percentage of the equipment cost in the first year.

Retirement Planning for Tax Savings

Medical professionals can lower their taxable income by contributing to retirement accounts such as:

• SEP IRA: Allows contributions up to 25% of compensation.
• 401(k) Plan: Enables higher contribution limits and employer matching options.

By strategically utilizing these tax strategies, medical practices can retain more earnings while preparing for the future.

3. Improving Cash Flow Management in Medical Practices

A steady cash flow is essential for covering operational costs, paying employees, and investing in practice growth. Here’s how medical practices can improve their financial stability.

Efficient Billing & Collections Processes

• Optimize Insurance Claims Processing: Minimize claim denials by ensuring proper coding and documentation.
• Automate Patient Billing: Implement electronic billing systems to reduce delays.
• Offer Payment Plans: Provide flexible payment options to improve collections.

Managing Insurance Reimbursements

Insurance reimbursements are often unpredictable. Medical practices should:

• Track Outstanding Claims: Regularly follow up on unpaid claims.
• Verify Patient Coverage: Confirm insurance details before providing services.
• Negotiate Higher Reimbursement Rates: Work with insurers to maximize payments.

Budgeting for Financial Stability

• Create a Reserve Fund: Set aside funds to cover unexpected expenses.
• Monitor Expenses Monthly: Identify cost-saving opportunities.
• Forecast Revenue Trends: Plan for seasonal fluctuations in patient volume.

By strengthening cash flow management, medical practices can maintain financial stability and avoid shortfalls.

4. Key Financial Planning Considerations for Medical Professionals

Cost Segregation for Tax Benefits

Medical professionals who own their office buildings can benefit from cost segregation studies, which accelerate depreciation on certain assets, reducing tax burdens.



Utilizing Health Savings Accounts (HSAs)

HSAs offer tax advantages by allowing pre-tax contributions for medical expenses, helping physicians and staff lower taxable income.

Taking Advantage of Tax Credits

Medical practices may qualify for tax credits such as:

• Energy Efficiency Credits: For using energy-efficient equipment.
• Hiring Incentives: For hiring certain employees or investing in workforce training.

5. The Role of Advisory Services in Growing a Medical Practice

Beyond basic accounting, advisory services help medical practices scale and remain competitive.

Mergers, Acquisitions & Succession Planning

• Mergers & Acquisitions: Structuring deals for financial and operational efficiency.
• Succession Planning: Ensuring a seamless transition when a physician retires or exits the practice.

CFO Advisory for Strategic Decision-Making

Hiring a CFO or working with a financial advisor like Presti & Naegele ensures:

• Data-Driven Decision Making: Using financial insights to optimize growth.
• Risk Management: Identifying potential financial risks before they impact the practice.

Estate Planning & Asset Protection

Medical professionals should have a solid estate plan to protect personal and business assets.

6. How Presti & Naegele Supports Medical Practices

At Presti & Naegele , we offer specialized financial solutions to medical practices, including:

• Tax Planning & Compliance
• Bookkeeping & Payroll Services
• Mergers & Succession Planning
• CFO Advisory & Strategic Consulting

Our experienced team helps medical professionals optimize profitability, maintain compliance, and achieve long-term financial success.

Conclusion & Call to Action

Running a successful medical practice requires more than just medical expertise—it demands sound financial management. By implementing tax-saving strategies, optimizing cash flow, and working with experienced financial advisors, medical practices can improve profitability and long-term sustainability.

At Presti & Naegele , we specialize in accounting and advisory services for medical professionals. If you’re ready to take control of your practice’s finances and maximize your profitability, contact us today for a consultation.

Nonprofit organizations play a crucial role in communities by supporting educational, cultural, religious, and humanitarian causes. Unlike for-profit businesses, nonprofits operate with a mission-driven focus, relying on donations, grants, and fundraising to sustain their programs. Because of this unique structure, nonprofit accounting is essential to maintaining financial transparency, ensuring compliance with IRS regulations, and building trust with donors.



At Presti & Naegele , we specialize in nonprofit accounting and have been providing expert financial services to mission-driven organizations since 1982. From bookkeeping and tax compliance to audits and financial advisory, we help nonprofits maintain strong financial health while focusing on their mission.

What Makes Nonprofit Accounting Different?

 Nonprofit accounting differs significantly from traditional business accounting. While for-profit companies focus on maximizing profits, nonprofits must ensure that all funds are used appropriately and in alignment with their mission. Here are key distinctions:

1. Fund Accounting

Unlike businesses that track revenue and expenses for overall profitability, nonprofits use fund accounting to categorize and monitor money based on its intended purpose. This method ensures that restricted donations are allocated correctly and used for the designated programs.

2. No Owners or Profit Distribution

Nonprofits do not have shareholders or owners. Instead, surplus funds must be reinvested into the organization’s mission. Proper accounting ensures financial responsibility and prevents misallocation of resources.

3. Donor and Grant Tracking

Because nonprofits rely on external funding sources, they must provide detailed financial reports to grant providers, board members, and donors. Transparency is key to maintaining long-term support.

4. Regulatory Compliance

Nonprofits are subject to strict IRS and state regulations. Filing Form 990 annually and undergoing financial audits are crucial to maintaining tax-exempt status and credibility.

With these complexities in mind, working with nonprofit accounting professionals like Presti & Naegele helps organizations stay compliant and financially stable.

Key Financial Reporting Requirements for Nonprofits

Proper financial reporting is essential for nonprofits to demonstrate accountability and compliance. Here are the core financial statements and documents nonprofits must maintain:

1. Statement of Financial Position (Balance Sheet)

This statement provides a snapshot of an organization's financial health, listing assets, liabilities, and net assets. It helps nonprofit leaders understand available resources and financial obligations.

2. Statement of Activities (Income Statement)

Instead of reporting profits, nonprofits use this statement to show revenue sources (e.g., grants, donations, program fees) and expenses. It categorizes funds as restricted or unrestricted to ensure transparency.

3. Statement of Cash Flows

This report tracks cash inflows and outflows, helping organizations manage liquidity and plan for future expenses.

4. IRS Form 990

The IRS requires most tax-exempt organizations to file Form 990 annually. This document provides details about the nonprofit’s financial activities, governance, and programs. A well-prepared Form 990 helps maintain compliance and demonstrates financial integrity.

Presti & Naegele assists nonprofits with accurate Form 990 preparation , ensuring compliance with IRS regulations while identifying tax-saving opportunities.

5. Audit Reports

Many nonprofits undergo audits to validate financial records and reinforce donor trust. Audits also help organizations meet grantor requirements and comply with federal and state laws.

Common Challenges in Nonprofit Accounting

Managing a nonprofit’s finances can be complex. Here are some of the most common accounting challenges nonprofits face:

1. Managing Restricted and Unrestricted Funds

Nonprofits receive different types of funding, including:

• Restricted funds : Donations designated for specific projects or programs.
• Unrestricted funds : General funds that can be used for any operational purpose.

Tracking and managing these funds correctly is critical for compliance and financial planning.

2. IRS Compliance and Tax Filings

Failing to properly file Form 990 or misreporting financial information can lead to penalties or even loss of tax-exempt status. Nonprofits must stay up to date with changing tax laws and reporting requirements.

3. Preparing for Financial Audits

Many nonprofits are required to undergo audits by independent accountants to ensure compliance and financial transparency. Poor record-keeping can make the audit process difficult and time-consuming.

4. Maintaining Accurate Bookkeeping

Without strong bookkeeping systems, nonprofits may struggle with cash flow management, payroll, and expense tracking. QuickBooks for Nonprofits and other accounting software can help streamline financial reporting.

5. Avoiding Financial Mismanagement and Fraud

Lack of oversight or weak internal controls can lead to financial mismanagement or fraud. Having a professional accounting team ensures accurate financial reporting and safeguards against fraud risks.

To overcome these challenges, many organizations partner with experienced nonprofit accountants like Presti & Naegele to manage their financial operations efficiently.

How Presti & Naegele Supports Nonprofits with Expert Accounting

With over 40 years of experience , Presti & Naegele provides specialized accounting solutions tailored to nonprofit organizations. Here’s how we support mission-driven organizations:

1. Pre-Audit Bookkeeping Services

Before undergoing an external audit, nonprofits must ensure their financial records are in order. Our pre-audit bookkeeping services help organizations:

• Organize financial documents.
• Identify potential discrepancies.
• Improve internal controls.



By preparing for audits in advance, nonprofits reduce stress and increase efficiency during the audit process.

2. IRS Form 990 Preparation

We help nonprofits prepare and file Form 990 accurately, ensuring compliance with IRS requirements. Our team also looks for tax-saving opportunities, such as credits and deductions, to maximize financial resources.

3. Comprehensive Bookkeeping and QuickBooks Services

Accurate bookkeeping is the foundation of financial management. Our services include:

• Recording transactions.
• Reconciling accounts.
• Managing payroll.
• Implementing QuickBooks for Nonprofits for streamlined accounting.

4. Financial Advisory and Compliance Support

We provide proactive financial advisory services , helping nonprofits:

• Develop budgeting and cash flow strategies.
• Improve financial reporting accuracy.
• Ensure compliance with federal and state regulations.

By partnering with Presti & Naegele , nonprofits gain access to expert guidance that enhances financial stability and efficiency.

The Long-Term Benefits of Professional Nonprofit Accounting

Working with a dedicated nonprofit accounting firm offers several long-term advantages:

1. Improved Financial Stability

Accurate accounting helps nonprofits plan for the future, allocate funds effectively, and avoid cash flow problems.

2. Increased Donor Confidence

Transparency in financial reporting reassures donors that their contributions are being used responsibly, encouraging continued support.

3. Compliance and Risk Management

With expert accountants handling compliance, nonprofits can avoid penalties, legal issues, and financial mismanagement.

4. More Time to Focus on the Mission

By outsourcing accounting tasks to professionals, nonprofit leaders can focus on what truly matters—advancing their mission and serving their communities.

Conclusion: Strengthen Your Nonprofit’s Financial Future with Presti & Naegele

Nonprofit accounting is complex, but with the right expertise, organizations can ensure financial transparency, regulatory compliance, and long-term sustainability. Whether you need help with bookkeeping, Form 990 preparation , audits, or financial strategy, Presti & Naegele is here to support your mission.

Contact us today to learn more about how our nonprofit accounting services can help your organization thrive.

Financial fraud is a growing concern for businesses, individuals, and legal entities alike. Whether it’s corporate embezzlement, asset misappropriation, or falsified financial statements, fraudulent activities can result in devastating financial and legal consequences. This is where forensic accounting plays a crucial role.

Forensic accounting goes beyond traditional bookkeeping—it involves investigative techniques, financial analysis, and litigation support to uncover fraud and financial misconduct. With forensic accountants, businesses and legal professionals gain a clearer picture of complex financial transactions, allowing them to detect fraud, recover assets, and strengthen financial controls.

At Presti & Naegele , our forensic accounting specialists provide expert fraud detection, litigation support, and financial investigation services. Whether you're dealing with suspected fraud, financial disputes, or compliance issues, our team ensures clarity, integrity, and actionable insights.

In this article, we’ll explore how forensic accounting helps uncover financial fraud, how forensic accountants support litigation, and how businesses can leverage forensic expertise to prevent fraud.

What is Forensic Accounting?

Forensic accounting is the specialized practice of investigating financial discrepancies, fraud, and legal disputes related to financial matters. Unlike standard accounting, which focuses on recording and analyzing financial transactions for business purposes, forensic accounting involves in-depth investigation, auditing, and evidence gathering to uncover irregularities.

Key Areas of Forensic Accounting

Forensic accounting services typically focus on:

• Fraud Detection: Identifying fraudulent activities such as asset misappropriation, payroll fraud, and financial statement manipulation.
• Litigation Support: Assisting in legal disputes by analyzing financial records, providing expert testimony, and presenting findings in court.
• Financial Investigations: Examining complex transactions, tracing assets, and uncovering financial misconduct in corporate and personal finance cases.
• Regulatory Compliance: Ensuring businesses adhere to financial regulations and standards to avoid legal consequences.

Industries That Rely on Forensic Accounting

Forensic accounting is essential across various industries, including:

• Corporate and Small Businesses: To prevent fraud and ensure financial transparency.
• Legal & Law Firms: For expert financial testimony in litigation cases.
• Financial Institutions: To investigate money laundering, embezzlement, and compliance violations.
• Government & Public Agencies: For auditing and financial fraud prevention in public sector entities.

How Forensic Accounting Detects Financial Fraud

Fraud can occur in various forms, from minor accounting errors to large-scale financial crimes. Forensic accountants use specialized techniques to uncover fraudulent activity and provide evidence for legal action.

Common Types of Financial Fraud

Forensic accounting investigations often focus on:

• Embezzlement: When employees or executives illegally siphon company funds for personal use.
• Asset Misappropriation: Unauthorized use or theft of company assets.
• Financial Statement Fraud: Manipulating financial records to deceive investors, regulators, or stakeholders.
• Tax Fraud & Evasion: Underreporting income or falsifying tax documents to avoid paying taxes.
• Vendor Fraud: Overbilling, duplicate payments, or collusion with vendors for financial gain.

Investigative Techniques Used in Forensic Accounting

Forensic accountants use several methodologies to detect fraud, including:

1. Data Analysis & Forensic Audits – Analyzing financial records for inconsistencies, duplicate transactions, and suspicious patterns.
2. Transaction Tracing – Tracking the movement of funds to identify unauthorized transactions or fraudulent activity.
3. Asset Tracing & Recovery – Locating hidden or misappropriated assets in fraud cases.
4. Digital Forensics – Examining electronic records, emails, and digital transactions for evidence of fraud.



Real-World Case Study: A Corporate Fraud Investigation

A mid-sized company noticed irregularities in their financial reports, including unexplained losses. After hiring forensic accountants, investigators uncovered that an employee had been inflating vendor invoices and diverting funds into personal accounts. By tracing transactions and analyzing financial statements, the forensic accounting team provided irrefutable evidence, leading to legal action and financial recovery for the company.

The Role of Forensic Accountants in Litigation Support

Forensic accountants play a crucial role in legal disputes involving financial matters. Their expertise helps attorneys, judges, and businesses make informed decisions based on clear, fact-based financial evidence.



How Forensic Accounting Supports Litigation

• Financial Evidence Analysis: Reviewing and interpreting financial records to support legal cases.
• Expert Witness Testimony: Presenting complex financial data in a way that courts and juries can understand.
• Fraud Investigations for Legal Cases: Providing documentation and insights for fraud-related lawsuits.
• Business Valuation & Economic Damages Calculation: Assessing financial losses and calculating damages in legal disputes.

Forensic Accounting in Divorce & Family Law Cases

Forensic accounting is commonly used in divorce cases to uncover hidden assets, assess income for alimony, and ensure fair financial settlements. For instance, if one spouse is suspected of concealing income or assets, a forensic accountant can trace bank accounts, business transactions, and tax records to reveal the true financial picture.

Case Example: Litigation Support in a Business Dispute

A business partner suspected financial misconduct by their co-founder. Through forensic accounting, investigators discovered fraudulent transactions and unauthorized withdrawals. The forensic accountant’s testimony provided the necessary evidence for a legal resolution, ensuring financial justice for the affected partner.

Fraud Prevention Strategies with Forensic Accounting

While forensic accounting helps detect fraud, businesses can also take proactive steps to prevent it. Prevention is always more cost-effective than dealing with financial losses and legal battles.

How Businesses Can Protect Themselves from Fraud

• Implement Strong Internal Controls: Regular audits, financial monitoring, and segregation of duties reduce fraud risks.
• Conduct Fraud Risk Assessments: Identifying potential vulnerabilities and mitigating risks before fraud occurs.
• Use Data Analytics & AI for Fraud Detection: Advanced financial analysis tools can identify anomalies and suspicious transactions.
• Work with Forensic Accountants for Regular Reviews: Engaging experts like Presti & Naegele ensures financial integrity and compliance.

Why Prevention is Key

Fraud cases often go undetected for years, leading to substantial financial losses. Businesses that invest in forensic accounting as a preventive measure benefit from improved financial security and operational transparency.

Why Choose Presti & Naegele for Forensic Accounting Services?

Forensic accounting requires expertise, investigative skills, and a deep understanding of financial systems. At Presti & Naegele , we provide top-tier forensic accounting services tailored to your needs.

Our Forensic Accounting Expertise

• Fraud Detection & Prevention: Proactively identifying risks and securing financial assets.
• Litigation Support: Providing expert financial analysis and courtroom testimony.
• Asset Tracing & Recovery: Uncovering hidden funds and misappropriated assets.
• Comprehensive Investigations: Ensuring regulatory compliance and financial transparency.

Serving Clients Nationwide

We proudly assist businesses, legal professionals, and individuals in:

• New York City
• New Jersey
• Connecticut
• Washington D.C.
• And across the United States

Conclusion & Call to Action

Financial fraud and disputes can have serious consequences, but forensic accounting provides a powerful solution. Whether you’re facing potential fraud, involved in litigation, or seeking to prevent financial misconduct, forensic accounting offers clarity, security, and actionable insights.

At Presti & Naegele , our forensic accounting experts are ready to help you navigate financial complexities with integrity and precision. Contact us today to schedule a consultation and take control of your financial security.

Financial management is more than just balancing the books—it’s about building a strategic foundation for sustainable growth. However, for small and mid-sized companies, hiring a full-time Chief Financial Officer (CFO) can be costly. This is where outsourced CFO services come in, providing businesses with high-level financial expertise without the expense of an in-house executive.

At Presti & Naegele , we offer customized CFO solutions that help businesses optimize financial operations, improve scalability, and navigate complex financial landscapes with confidence.



Let’s explore how our outsourced CFO services can enhance your company’s financial strategy.

What Are CFO Services, and Why Do They Matter?

A CFO plays an essential role in maintaining a company’s financial health. From budget management and cash flow optimization to strategic guidance during mergers, acquisitions, and expansions, a CFO ensures financial decisions align with long-term business goals.

Outsourced CFO services provide these critical financial leadership functions on a flexible basis, giving companies expert-level insights without the overhead costs of a full-time executive. This approach enables businesses to make data-driven decisions, maintain compliance, and streamline financial operations.

At Presti & Naegele , our CFO services are designed to:

✔ Develop financial strategies that support business growth.
✔ Enhance operational efficiency with real-time financial insights.
✔ Ensure compliance with industry regulations and reporting standards.

By outsourcing CFO services, businesses can focus on their core operations while gaining the financial clarity needed to drive sustainable success.

Why Businesses Are Turning to Outsourced CFO Services

Many companies recognize the value of CFO-level financial oversight but struggle with the cost and commitment of hiring in-house. Outsourced CFO services offer an effective solution, delivering expert financial management on a scalable basis.

1. Cost Savings

Hiring a full-time CFO involves significant expenses, including salary, benefits, and office overhead. Outsourced CFO services allow businesses to access top-tier expertise without these financial burdens.

2. Industry-Specific Expertise

Outsourced CFOs bring diverse experience across multiple industries, providing tailored financial solutions that address sector-specific challenges and opportunities.

3. Flexibility & Scalability

Businesses evolve over time, facing different financial challenges at each stage. Whether scaling operations, managing a crisis, or preparing for an audit, outsourced CFOs offer adaptable support tailored to a company’s unique needs.

At Presti & Naegele , our outsourced CFO solutions are designed to provide businesses with agile, cost-effective, and results-oriented financial leadership.

How Outsourced CFO Services Drive Business Success

Beyond traditional accounting and bookkeeping, outsourced CFOs bring strategic financial leadership that impacts key areas of a business.

1. Strategic Financial Planning

A CFO helps set a long-term financial strategy that aligns with business objectives, ensuring steady growth and resilience.

2. Cash Flow & Budget Management

Monitoring cash flow is crucial to maintaining smooth business operations. A CFO ensures financial stability by identifying cash flow patterns and implementing proactive solutions.

3. Risk Assessment & Mitigation

From economic downturns to industry shifts, businesses face various financial risks. CFOs analyze and manage these risks to safeguard long-term stability.

4. Compliance & Regulatory Oversight

Staying compliant with tax laws, industry regulations, and reporting requirements is critical. CFOs help businesses navigate complex regulatory landscapes and avoid costly penalties.



At Presti & Naegele , we specialize in providing strategic financial guidance that strengthens businesses across all these critical areas.

Which Industries Benefit from CFO Services?

 Outsourced CFO services are highly adaptable, making them valuable for businesses across a wide range of industries. At Presti & Naegele , we’ve helped companies in:

• Real Estate : Financial planning for property investments and portfolio management.
• Retail : Cash flow optimization and inventory financial strategy.
• Medical Practices : Regulatory compliance and operational cost management.
• Technology : Financial planning for innovation and business expansion.

No matter the industry, our outsourced CFO solutions provide tailored financial strategies that support long-term business success.

How to Choose the Right CFO Service Provider

Not all CFO service providers offer the same level of expertise. When selecting an outsourced CFO, consider these key factors:

1. Proven Experience

A strong financial partner should have a successful track record of working with businesses in your industry.

2. Customized Financial Strategies

Financial solutions should be tailored to your company’s specific goals, rather than offering generic advice.

3. Transparent & Proactive Communication

An effective CFO service provider should offer clear insights, regular reporting, and proactive financial recommendations.

At Presti & Naegele , we prioritize industry expertise, customized financial planning, and open communication to help businesses make informed financial decisions.

Why Presti & Naegele Is Your Ideal CFO Partner

With over 40 years of experience in accounting and financial advisory, Presti & Naegele delivers CFO services that go beyond basic financial management. Our approach focuses on:

✔ Tailored Solutions – Custom financial strategies that align with business objectives.
✔ Proactive Advisory – Ongoing support to navigate challenges and identify growth opportunities.
✔ Industry-Specific Expertise – Insights across multiple sectors to drive data-driven decisions.
✔ Client-First Approach – A dedicated partnership focused on long-term financial success.

Our commitment to precision and strategic financial leadership ensures businesses can confidently plan for the future while managing their current financial needs.

Conclusion

Outsourced CFO services aren’t just an alternative to hiring an in-house executive—they’re a strategic advantage that helps businesses maintain financial stability, optimize operations, and achieve long-term growth.

At Presti & Naegele , we provide CFO services that help businesses navigate financial complexities with confidence. Our expert team delivers strategic financial guidance tailored to your company’s needs.

Ready to take control of your financial future? Schedule a consultation with our team today!

Successfully managing the financial and tax aspects of real estate investments demands more than basic accounting. Whether you’re an investor managing multiple properties or an agent handling deals, implementing the right financial strategies is crucial. This is where specialized Real Estate CPA services can significantly impact your success.

At Presti & Naegele, we recognize the unique challenges faced by real estate professionals, from navigating tax compliance to optimizing investment planning. Our services are designed to streamline your financial strategies, minimize tax liabilities, and enhance growth potential.



This guide highlights the importance of partnering with a Real Estate CPA , the key advantages of professional real estate accounting, and the services that should be prioritized by investors and agents.

The Need for Specialized Real Estate Accounting Expertise

Real estate is a complex field characterized by intricate transactions, ever-changing regulations, and unique tax rules. While general accountants may offer basic support, Real Estate CPAs bring industry-specific expertise.

Key Challenges in Real Estate Accounting:

• Transaction Complexity: Real estate deals often involve multiple stakeholders, financing layers, and legal requirements.
• Tax Regulations: Staying compliant with frequently evolving real estate tax laws demands specialized knowledge.
• Cash Flow Management: Balancing rental income, property expenses, and debt obligations requires strategic oversight.

At Presti & Naegele, our experts address these challenges with precision, aligning financial strategies with your goals.



Learn more about our Real Estate CPA services here.

Benefits of Working with a Real Estate CPA

Engaging a Real Estate CPA goes beyond tax filing; it’s about building a financial strategy for sustained success.

1. Tax Strategy and Compliance: Structuring transactions to reduce tax liabilities while staying compliant with laws.
2. Maximizing Deductions: Identifying deductions like cost segregation, mortgage interest, and property depreciation.
3. Investment Planning: Providing insights for acquisitions and portfolio management.
4. Efficient Bookkeeping: Ensuring accurate records for streamlined expense tracking and reporting.

At Presti & Naegele, these benefits are at the heart of every client relationship.

Explore our Real Estate CPA services.

Key Real Estate Accounting Services for Investors

1. Tax Planning and Preparation: Comprehensive planning ensures accurate filings, avoiding penalties and optimizing returns.
2. Cost Segregation Studies: Accelerate property depreciation to lower taxable income.
3. Commercial Real Estate Accounting: Advanced oversight for managing large properties or complex transactions.
4. Expense Tracking Tools: Utilizing modern accounting software for efficient tracking and categorization.

With these services, Presti & Naegele simplifies operations and enhances financial clarity.

Discover our services.

Tax Deductions for Real Estate Investors

Real estate investors can take advantage of unique tax deductions, but many go unnoticed without a Real Estate CPA .

Potential Deductions:

• Mortgage Interest
• Property Depreciation
• Repairs and Maintenance
• Property Taxes
• Travel Expenses for Property Management

Our team ensures no deduction is overlooked, helping to maximize tax savings.

Learn more about maximizing deductions.

Importance of Bookkeeping for Real Estate Success

Accurate bookkeeping is fundamental to a successful investment strategy. Neglecting financial records can lead to cash flow issues, missed tax deadlines, and costly mistakes.

Benefits of Professional Bookkeeping:

• Detailed financial tracking.
• Simplified tax filing.
• Clear insights into profitability.

At Presti & Naegele, we use tools like QuickBooks to ensure precise record-keeping.

Streamline your bookkeeping .

Choosing the Right Real Estate CPA Firm

Selecting the right CPA firm is critical for financial clarity and success.

What to Consider:

• Real estate-specific expertise.
• Comprehensive service offerings.
• Proactive communication and strategic advice.

With decades of experience, Presti & Naegele meets these criteria, delivering customized accounting solutions for real estate professionals.

Partner with us.

Secure Your Financial Future

While real estate offers great financial rewards, it comes with significant responsibilities. Partnering with a Real Estate CPA helps protect investments, minimize taxes, and build effective financial strategies for long-term success.

At Presti & Naegele, we provide tailored guidance to investors, agents, and developers, ensuring optimized results.



Contact us for expert Real Estate CPA services .

Small businesses are the backbone of any economy, contributing innovation, employment, and dynamic growth across industries. However, financial management remains one of the most significant challenges small businesses face. Proper accounting isn’t just about balancing books—it’s about creating a roadmap for sustainable success.



At Presti & Naegele , we understand that effective financial management is key to helping small businesses thrive. Our tailored accounting services provide clarity, compliance, and strategic insights, allowing business owners to focus on growth instead of being buried in spreadsheets.

The Crucial Role of Small Business Accounting

Accounting isn’t merely a compliance requirement—it’s a vital tool for decision-making. A reliable accounting system helps businesses:

• Track income and expenses accurately
• Understand cash flow patterns
• Ensure tax compliance and minimize liabilities
• Identify growth opportunities and cost-saving measures

Without proper financial records, small business owners often find themselves making decisions in the dark. Client Accounting Services offered by Presti & Naegele ensure accurate financial reporting, empowering business owners with actionable insights.

When businesses invest in professional accounting, they gain more than just organized books—they gain financial clarity and strategic direction.

Common Financial Challenges Faced by Small Businesses

Managing finances is a complex task for any small business owner. Here are the most common financial hurdles they face:

1. Cash Flow Management: Maintaining a steady cash flow is essential for daily operations and long-term planning.
2. Tax Compliance: Navigating changing tax regulations can be overwhelming without expert guidance.
3. Regulatory Challenges: Different industries have varying compliance requirements, adding layers of complexity.
4. Financial Forecasting: Predicting revenue and expenses accurately is challenging without professional insight.

At Presti & Naegele , we address these issues head-on with customized accounting solutions tailored to individual business needs. Our services ensure that small businesses not only overcome these obstacles but thrive beyond them.

Key Accounting Services That Small Businesses Need

Different businesses have different financial needs, but some accounting services are universally essential:

Tax Services

Tax planning and preparation are critical for avoiding penalties and maximizing deductions. Our experts guide small businesses through every aspect of tax compliance, ensuring they meet deadlines and regulations.

Client Accounting Services

From bookkeeping to payroll management, we offer comprehensive accounting support tailored to your specific needs. Accurate financial records form the foundation for effective decision-making.

Advisory Services

Financial strategy isn’t just about tracking past performance—it’s about planning for the future. Our advisory services offer actionable insights to help businesses make informed decisions.

Forensic Accounting & Valuation

Whether you’re assessing financial fraud risks or determining business value, our forensics and   valuation services provide clarity in complex financial matters.

By offering these core services, Presti & Naegele ensures that every aspect of a small business’s financial health is accounted for.

The Benefits of Partnering with a Professional Accounting Firm

Choosing the right accounting firm can make a significant difference in a small business’s growth trajectory. Here’s what professional firms like Presti & Naegele bring to the table:

• Proactive Guidance: We don’t just report numbers; we analyze them and offer forward-thinking advice.
• Industry-Specific Insights: Different industries have unique accounting needs, and our team understands these nuances.
• Time Savings: By outsourcing accounting, business owners can focus on core operations instead of administrative burdens.
• Regulatory Compliance: Staying ahead of changing tax and accounting laws can prevent costly penalties.

Partnering with professionals like us ensures financial systems are streamlined, scalable, and aligned with long-term goals.

How Technology Enhances Modern Accounting Practices

Modern accounting is no longer confined to ledgers and spreadsheets—it’s driven by cutting-edge technology . At Presti & Naegele , we utilize advanced tools like QuickBooks to streamline accounting processes.

QuickBooks Services

QuickBooks automates tedious accounting tasks, reduces errors, and provides real-time financial data. Whether it’s payroll processing, expense tracking, or generating financial reports, QuickBooks is a game-changer for small businesses.

Our Certified QuickBooks Consultants help businesses set up, optimize, and maintain their QuickBooks systems to ensure efficiency and accuracy in financial management.

Accounting isn’t just about compliance—it’s about creating a financial strategy that drives growth, minimizes risks, and ensures long-term sustainability. With services ranging from tax planning to QuickBooks consulting , Presti & Naegele is committed to empowering small businesses through exceptional accounting services.

Your financial clarity starts with a conversation. Schedule a consultation with Presti & Naegele today and let us help your business thrive.

In a major shift toward cloud-based solutions, Intuit has announced the discontinuation of QuickBooks Desktop support for several versions of its software by September 30, 2024. This strategic move represents a clear pivot to focus exclusively on QuickBooks Online , signaling a new era for accounting software.

For businesses that have long relied on QuickBooks Desktop, this development raises significant questions about continuity, data migration, and future compatibility. Fortunately, Presti & Naegele, a leading accounting and advisory firm based in New York City, is here to help. With decades of experience providing tailored QuickBooks services, they are well-equipped to guide businesses through this transition. Visit Presti & Naegele’s QuickBooks Services for more information on how they can help.

Why Is QuickBooks Desktop Support Ending?

The announcement that QuickBooks Desktop support is ending reflects both technological advancements and shifting consumer preferences. Cloud-based solutions have revolutionized the way businesses manage financial processes, and QuickBooks Online is at the forefront of this transformation.

Factors Behind the Decision

1. Customer Demand for Flexibility
   Today’s businesses prioritize flexibility and mobility. Cloud-based software like QuickBooks Online offers the ability to access financial data from any device, anywhere in the world. This is a stark contrast to QuickBooks Desktop, which ties users to a specific computer.
2. Technological Advancements in Cloud Computing
   Cloud platforms are not only more scalable but also more secure. QuickBooks Online leverages advanced encryption, real-time backups, and robust integrations to provide a seamless user experience.
3. Industry Shift Toward SaaS
   The Software as a Service (SaaS) model has gained dominance across industries. By focusing on SaaS solutions like QuickBooks Online, Intuit can deliver continuous updates, new features, and superior performance without requiring manual installations or upgrades.
4. Cost Efficiency for Intuit
   Maintaining support for legacy desktop systems is costly and inefficient for software developers. By sunsetting QuickBooks Desktop, Intuit can channel resources into enhancing its cloud-based platform.

Presti & Naegele has been closely monitoring this transition and offers invaluable support to businesses affected by QuickBooks Desktop support ending . Their experts provide insights and practical solutions to make th e migration as seamless as possible.

What Versions Are Impacted?

As of September 30, 2024, the following QuickBooks Desktop versions are no longer being sold to new users:

• QuickBooks Desktop Pro Plus
• QuickBooks Desktop Premier Plus
• QuickBooks Mac Plus
• QuickBooks Desktop Enhanced Payroll

Key Implications for Existing Users

Existing subscribers can renew their subscriptions and will continue to receive security updates and support for now. However, this phased discontinuation strongly suggests a future where all desktop support ceases entirely.

The Benefits of QuickBooks Online

While the end of QuickBooks Desktop support may seem daunting, the migration to QuickBooks Online opens the door to numerous advantages that modernize and streamline accounting processes. Here’s an in-depth look at the benefits businesses can expect:

1. Accessibility from Anywhere

Unlike QuickBooks Desktop, which restricts users to the device on which it is installed, QuickBooks Online enables access from any internet-connected device. This capability is a game-changer for businesses with remote teams or individuals who need to manage finances on the go.

With QuickBooks Online, you’re no longer tied to your office. Whether you’re working from home, traveling for business, or managing multiple locations, your financial data is just a login away.

2. Automatic Updates and Maintenance

One of the significant pain points of desktop software is the need for manual updates, which often require technical know-how and downtime. QuickBooks Online eliminates this hassle entirely. The software updates automatically, ensuring users always have access to the latest features, security patches, and compliance measures.

This seamless updating process reduces the risk of using outdated software, which can be vulnerable to cyberattacks. It also means you’ll never have to purchase a new version of the software again—your subscription keeps you current at all times.

3. Enhanced Security Features

Data security is a top priority for Intuit, and QuickBooks Online reflects this commitment. The platform uses state-of-the-art encryption, multi-factor authentication, and regular backups to safeguard your financial information. In contrast, QuickBooks Desktop relies on the user’s system security, which can vary widely.

QuickBooks Online’s cloud infrastructure also protects against data loss due to hardware failure, theft, or natural disasters. With your data stored securely in the cloud, you’ll always have a reliable backup.

4. Real-Time Collaboration

QuickBooks Online supports multi-user access, allowing multiple team members or accountants to work on the same data simultaneously. This feature is especially beneficial for businesses that outsource their bookkeeping or work with accounting firms like Presti & Naegele.

Presti & Naegele can assist in setting up user roles and permissions within QuickBooks Online, ensuring that each team member has access to the information they need without compromising sensitive data.

Challenges of Transitioning to QuickBooks Online

While the benefits of QuickBooks Online are compelling, the migration process can be complex, particularly for businesses with extensive historical data or customized desktop setups.

1. Data Migration Risks

Transferring years of financial data from QuickBooks Desktop to QuickBooks Online requires meticulous planning. There’s a risk of data loss or corruption if the process isn’t handled correctly.

To mitigate these risks, Presti & Naegele offers comprehensive data migration services. Their team ensures that your financial records are transferred accurately and securely, with minimal disruption to your operations.

2. Learning Curve

For users accustomed to QuickBooks Desktop, the transition to QuickBooks Online may involve a learning curve. While the online platform is designed to be intuitive, differences in layout and functionality can be confusing initially.

Presti & Naegele provides customized training sessions to help your team adapt quickly to QuickBooks Online. Their experts guide users through the platform’s features, ensuring a smooth transition.

3. Subscription Costs

Switching to a subscription-based model can increase costs for some businesses. However, the value-added benefits of QuickBooks Online, such as automatic updates and enhanced features, often outweigh the expense.

Preparing for the Transition: A Step-by-Step Guide

The decision to transition from QuickBooks Desktop to QuickBooks Online should be strategic and well-planned. Here’s a step-by-step guide to help you navigate the process:

Step 1: Evaluate Your Current Setup

Begin by assessing how your business uses QuickBooks Desktop. Identify critical features, integrations, and workflows that need to be preserved in QuickBooks Online.

Presti & Naegele’s consultants can help you map out these requirements, ensuring a seamless transition to the new platform.

Step 2: Choose the Right QuickBooks Online Plan

QuickBooks Online offers multiple subscription tiers, each designed to meet specific business needs. Whether you’re a freelancer, small business, or large enterprise, there’s a plan that fits.

Presti & Naegele can recommend the best plan for your business and assist with account setup.

Step 3: Backup Your Data

Before migrating, create a comprehensive backup of your QuickBooks Desktop data. This precaution protects against unexpected issues during the transition.

Step 4: Migrate Your Data

Using Intuit’s migration tools or the expertise of Presti & Naegele, transfer your financial data to QuickBooks Online. This process involves importing customer information, vendor records, account balances, and transaction history.

Step 5: Train Your Team

Provide training to your employees to familiarize them with QuickBooks Online’s interface and features. Presti & Naegele offers tailored training programs to ensure your team is confident and proficient.

Step 6: Optimize and Integrate

Once you’ve migrated to QuickBooks Online, explore integration opportunities with third-party tools such as CRM software, payment processors, and inventory management systems.

Why Choose Presti & Naegele for QuickBooks Support?

With decades of experience in accounting and advisory services, Presti & Naegele is a trusted partner for businesses navigating the end of QuickBooks Desktop support .

Comprehensive QuickBooks Services

Presti & Naegele offers a full suite of QuickBooks services, including:

• QuickBooks Desktop to Online Migration
• Data Cleanup and Reconciliation
• Custom Reporting Solutions
• Third-Party App Integration

Their expertise ensures that your transition is smooth, efficient, and aligned with your business goals.

Local Expertise with Global Reach

Based in New York City, Presti & Naegele serves businesses across industries. Their intimate knowledge of local market trends, combined with their global outlook, makes them an invaluable resource.

Visit Presti & Naegele’s QuickBooks Services to learn more.

The Future of Accounting Software

The decision to phase out QuickBooks Desktop is part of a broader industry trend toward cloud-based solutions. Businesses that embrace this shift can unlock new efficiencies, improve collaboration, and future-proof their financial systems.

Presti & Naegele stands ready to help your business navigate the transition and thrive in this new era. Don’t wait until QuickBooks Desktop support ends —start planning your migration today.

For more details on QuickBooks Online and personalized support, visit Presti & Naegele’s QuickBooks Services page.

BOI - Obligation To File

• As a result of The Corporate Transparency Act most privately held U.S. companies (“Reporting Companies”) will now be subject to the new Beneficial Ownership Information (BOI) reporting requirements.

• Despite certain exclusions for having to file a BOI Report, most businesses will have to file a report.

 Filing Due Date: Jan 1st, 2025

• If the reporting company was established on or after January 1, 2024 , the report is due within 90 days of the reporting companies' initial formation date.

Read more about Beneficial Ownership Information Reporting >>> HERE

Contact your P&N representative if you have questions or would like P&N to file your BOI report.

On Thursday, October 19th , the IRS unveiled a fresh initiative that permits employers to retract their claims for the Employee Retention Credit (ERC). This move comes on the heels of the IRS's recent halt in processing new ERC claims just last month. This withdrawal program provides employers who have previously submitted ERC claims they now consider to be incorrect an opportunity to avoid potential fines and interest associated with such erroneous claims. The IRS also restated its earlier strong cautions regarding the use of ERC "mills" that promote business eligibility for the credit in a manner inconsistent with IRS guidance.

Who can ask to withdraw an ERC Claim?

Employers can use the ERC claim withdrawal process if all of the following apply:

They made the claim on an adjusted employment return (Forms 941-X, 943-X, 944-X, CT-1X).

They filed the adjusted return only to claim the ERC, and they made no other adjustments.

They want to withdraw the entire amount of their ERC claim.

The IRS has not paid their claim, or the IRS has paid the claim, but they haven't cashed or deposited the refund check.

Taxpayers who are not eligible to use the withdrawal process can reduce or eliminate their ERC claim by filing an amended return. For details, see the Correcting an ERC claim – Amending a return section of the frequently asked questions about the ERC.

How To Withdraw an ERC Claim?

To take advantage of the claim withdrawal procedure, taxpayers should carefully follow the special instructions at IRS.gov/withdrawmyerc , summarized below.

Taxpayers whose professional payroll company filed their ERC claim should consult with the payroll company. The payroll company may need to submit the withdrawal request for the taxpayer, depending on whether the taxpayer's

ERC claim was filed individually or batched with others.

Taxpayers who filed their ERC claims themselves, haven't received, cashed or deposited a refund check and have not been notified their claim is under audit should fax withdrawal requests to the IRS using computer or mobile device. The IRS has set up a special fax line to receive withdrawal requests. This enables the agency to stop processing before the refund is approved. Taxpayers who are unable to fax their withdrawal using a computer or mobile device can mail their request, but this will take longer for the IRS to receive.

Employers who have been notified they are under audit can send the withdrawal request to the assigned examiner or respond to the audit notice if no examiner has been assigned.

Those who received a refund check, but haven't cashed or deposited it, can still withdraw their claim. They should mail the voided check with their withdrawal request using the instructions at IRS.gov/withdrawmyerc .

Learn More About Employee Retention Credit, Contact P&N Today!

As a result of the Corporate Transparency Act, most privately held U.S. companies (“Reporting Companies”) will now be subject to the new Beneficial Ownership Information (BOI) reporting requirements. The purpose of these new reporting requirements is to help prevent money laundering and other financial crimes by providing information about beneficial owners who directly or indirectly own or control more than 25% of a company’s ownership interests or directly or indirectly exercises “substantial control” of the company.

For Reporting Companies established prior to Dec. 31st, 2023

The deadline to file their initial BOI report is January 1, 2025 . For Reporting Companies established on or after January 1, 2024 the deadline to file their initial BOI report is within 90 days of the Reporting Company’s initial formation date (the original deadline was recently extended from 30 days to 90 days from the Reporting Company’s initial formation date).

The BOI reports will be submitted to The Financial Crimes Enforcement Network (FinCEN), which is a bureau of the United States Department of Treasury.

FinCEN has not yet released a draft of the report, but has stated they will begin accepting BOI reports on January 1, 2024.

Contact Presti & Naegele today to see how the New BOI reporting requirements will impact your business .

Visit the FinCEN website to read more about the specific information Reporting Companies will need to disclose about themselves and their beneficial owners.

https://www.fincen.gov/boi