Your annual employee benefit plan audit is a critical compliance requirement. While changing audit providers isn’t something you do frequently, there are times when a new partnership makes strategic sense—whether you’re seeking specialized industry knowledge, more responsive service, or simply better value for the fees you’re paying. 

Understanding when and how to make this transition helps you maintain compliance while improving the quality and efficiency of your audit process. 

Recognizing When It’s Time Switch to a New Employee Benefit Plan Audit Firm 

Several situations might prompt you to evaluate alternative audit providers: 

• Service Quality Concerns: If your current auditor is difficult to reach, slow to respond to questions, or provides minimal guidance on compliance matters, you’re not getting the partnership you need. 
• Industry Knowledge Gaps: Your business operates in a specific industry with unique considerations. An audit firm with deep experience in your sector brings valuable perspective on common issues, relevant benchmarks, and potential risks that generalist auditors might miss. 
• Fee Misalignment: If your audit fees have increased significantly without corresponding improvements in service quality, or if you suspect you’re paying more than market rates, it’s worth exploring alternatives. 
• Changes in Your Organization: Mergers, acquisitions, significant growth, or changes in plan structure might warrant an auditor with specific technical capabilities or resources to handle increased complexity. 
• Lack of Continuity: If your audit firm frequently changes the team members assigned to your engagement, you lose the benefit of institutional knowledge and relationships. Consistency matters in understanding your plan’s history and nuances. 

What to Look for in an Audit Provider 

When evaluating potential audit providers, focus on factors that directly impact your experience and outcomes. 

Specialized Knowledge and Credentials 

Employee benefit plan audits fall under specific Department of Labor (DOL) and Employee Retirement Income Security Act (ERISA) regulations. Look for firms that: 

• Demonstrate substantial experience conducting ERISA audits 
• Employ professionals with specialized training in employee benefit plan compliance 
• Maintain membership in the AICPA’s Employee Benefit Plan Audit Quality Center, which signals a commitment to quality and ongoing education 
• Stay current with regulatory changes and DOL guidance 
• Are committed to security of the information that is handled in the employee benefit plan audit, and can evidence the firm’s strong information security policies and procedures 

Service Approach and Communication 

The best audit relationships feel collaborative rather than transactional. During your evaluation, assess: 

• How responsive are they during initial conversations? 
• Do they assign a dedicated team, or will you interact with different people each year? 
• What’s their approach to explaining findings and recommendations? 
• How do they communicate with your third-party administrator (TPA) and other service providers? 
• Do they provide guidance on best practices and emerging compliance issues? 

Efficient Process and Timeline 

A well-managed audit minimizes disruption to your business: 

• What’s their typical timeline from kickoff to completion? 
• How do they coordinate with your TPA to obtain necessary documentation? 
• What do they require from you directly versus obtaining from your service providers? 
• Do they provide clear checklists and guidance on what you need to prepare? 

Transparent Fee Structure 

Request detailed fee proposals that outline base audit fees, costs for additional services, and how fees might change if your participant count or plan complexity increases. Make sure you understand what’s included versus what triggers additional charges. 

Learn more about our Employee Benefit Plan Audit Services

Navigating the Transition to a New Employee Benefit Plan Audit Firm 

Once you’ve selected a new audit provider, a smooth transition requires coordination and clear communication. 

Timing Considerations 

Plan your auditor transition thoughtfully: 

• Ideal timing: Begin your search and selection process several months before your next audit deadline to avoid rushed decisions and allow for appropriate time to plan and execute the audit 
• Communicate early: Notify your current auditor of your decision in writing, following any termination provisions in your engagement letter 

Information Your New Auditor Needs 

Your new audit firm will need access to historical information to understand your plan: 

• Prior year audit reports and management letters 
• Plan documents and summary plan description 
• Recent Form 5500 filings 
• Documentation of any compliance corrections or issues 
• Information about your plan’s service providers 

Your TPA will provide most audit documentation directly to your new auditor, but having context from prior audits helps them understand your plan’s history. 

Working with Your TPA 

Your third-party administrator plays a crucial role in the audit process. Let them know about the change: 

• Provide your new auditor’s contact information well in advance 
• Confirm the TPA can deliver their audit package in the format and timeline your new auditor requires 
• Clarify who coordinates communication between the TPA and auditor 

Most experienced TPAs work with multiple audit firms regularly and can adapt to different auditors’ processes smoothly. 

Maintaining Compliance During the Transition 

Changing audit providers doesn’t alter your compliance obligations or deadlines: 

Form 5500 Filing Deadlines 

For calendar year plans: 

• July 31: Initial deadline to file Form 5500 with attached audit report 
• October 15: Extended deadline (requires filing Form 5558 for extension) 

Audit Requirements 

Your audit must still comply with Generally Accepted Auditing Standards (GAAS) and meet DOL requirements regardless of which firm conducts it. 

Plan Committee Responsibilities 

Document your auditor selection process, including how you evaluated alternatives and why you chose your new firm. This documentation demonstrates your fiduciary oversight. 

The Benefits of the Right Audit Partnership 

When you find an audit provider that aligns with your needs, the relationship becomes more than an annual compliance exercise: 

• You gain advisors who help you understand regulatory changes and their implications 
• You receive proactive guidance on improving plan administration and internal controls 
• You benefit from their experience seeing similar plans and common issues 
• You spend less time managing the audit process because communication flows smoothly 
• You have confidence that your audit meets the highest quality standards 

The right audit firm views your plan not just as an engagement but as an ongoing advisory relationship where they’re invested in your success. 

How BPM Approaches Employee Benefit Plan Audits 

At BPM, our employee benefit plan audit professionals focus exclusively on helping organizations navigate the complexities of retirement plan compliance. We understand that your annual audit should provide value beyond meeting regulatory requirements—it should give you confidence in your plan’s operations and insights to improve processes. 

Our approach emphasizes: 

• Clear communication and dedicated team continuity 
• Efficient coordination with your TPA to minimize your workload 
• Proactive guidance on regulatory changes and best practices 
• Transparent processes so you always know what to expect 

Whether you’re approaching audit status for the first time or considering a change from your current auditor, we’re here to help you understand your options and determine the best path forward. 

Making the Decision 

Switching audit providers is a significant decision, but it shouldn’t be intimidating. If your current audit relationship isn’t meeting your needs—whether due to service quality, communication gaps, or simply the sense that you could be getting more value—exploring alternatives is both appropriate and responsible. 

Your annual audit represents an opportunity to validate your plan’s compliance, identify potential improvements, and strengthen your fiduciary oversight. Partnering with the right audit firm helps you maximize that opportunity. 

Ready to discuss whether a change makes sense for your organization? Contact our employee benefit plan audit team to learn more about our approach and explore how we can support your plan’s success. 

In today’s complex business landscape, sales tax compliance has become a critical concern for companies of all sizes. As a CFO or financial manager, you’re likely aware of the challenges and risks associated with failing to meet your sales tax obligations. But what exactly is sales tax compliance and why should it be a top priority for your business? 

Sales tax compliance refers to the process of accurately calculating, collecting, reporting and remitting sales taxes to the appropriate authorities. It’s a multifaceted responsibility that requires careful attention to detail and a thorough understanding of ever-changing tax laws and regulations. 

In this article, we’ll guide you through the essential steps of achieving and maintaining sales tax compliance. We’ll explore the key challenges you might face and provide practical strategies to help your business confidently navigate the complex world of sales tax. 

What is Sales Tax Compliance?

Before getting into the specifics of compliance, it’s crucial to understand the basics of sales tax and how it differs from other types of taxes. Sales tax is a consumption tax imposed on the sale of goods and services, typically collected by the seller and remitted to the government. 

One of the most important concepts in sales tax compliance is nexus. Traditionally, nexus referred to a physical presence in a state, such as having an office, employees or inventory. However, the 2018 South Dakota v. Wayfair decision introduced the concept of economic nexus, which means businesses can have tax obligations in states where they have significant sales, even without a physical presence. It’s important to note that Wayfair did not change the fact that some states don’t charge sales tax. 

Each state sets its own economic nexus thresholds, which can vary widely. For example, some states may require businesses to collect and remit sales tax if they have $100,000 in sales or 200 transactions, while others might have higher thresholds. 

The rise of e-commerce and marketplace sales has further complicated the sales tax landscape. Many states now have marketplace facilitator laws, requiring platforms like Amazon or Etsy to collect and remit sales tax on behalf of their sellers. As a result, businesses must carefully track their sales across various channels to help ensure compliance. 

Seven Key Steps in Achieving Sales Tax Compliance

Navigating sales tax compliance involves a series of critical steps that every CFO, financial manager and tax manager must master to help support their company in meeting its obligations and avoiding costly penalties. These steps include: 

1. Determining Tax Obligations 

The first step in sales tax compliance is assessing where your business has a nexus. This involves reviewing your sales data and business activities in each state to determine if you meet the physical or economic nexus thresholds. Regularly monitoring your sales is crucial, as crossing a threshold can trigger new obligations. 

2. Identifying Product and Service Taxability 

Understanding the taxability of your products or services is a critical aspect of sales tax compliance. Taxability can vary significantly across jurisdictions. For instance, clothing might be taxable in one state but exempt in another. Some products, like food and beverage items, may have different tax rates or exemptions based on their category or intended use. 

3. Consider Prior Exposure Before Registration 

Before registering, quantify your prior exposure, including potential interest and penalties. Be aware that registering before exploring state mitigation options like a Voluntary Disclosure Agreement (VDA) may disqualify your company from participating in such programs. It’s important that you understand what a VDA entails and whether you might be ineligible if you’ve already registered or collected tax. Also consider other state mitigation opportunities such as tax amnesties or compromise agreements. Options like filing past returns or seeking penalty abatement may be available as well. Carefully weigh these alternatives before proceeding with registration. 

4. Registering to Collect and Remit Sales Tax 

Once you’ve identified where you have nexus, you need to register with the appropriate state tax authorities. Each state has its own registration process, which may involve obtaining specific licenses or permits. Some states allow online registration, while others require paper forms. Be prepared to provide detailed information about your business structure, company’s officers, products and anticipated sales volumes.  Please note that registering for sales tax in a particular state may also necessitate filing income tax returns in that state.   

It’s important to understand that sales tax is often considered a trust fund tax. This means that as a business, you collect the tax on behalf of the state and are responsible for remitting it. The concept of a “responsible party” is crucial here — this is typically an individual who has control over or responsibility for collecting and paying taxes. 

During the registration process, you’ll likely need to submit personal information about the company’s officers, directors, shareholders and other responsible parties. This can include: 

• Addresses 
• Dates of birth 
• Social Security numbers 
• Copies of driver’s licenses and passports 
• Dates of taking office 
• Titles 
• Percentages of ownership 

Be prepared to provide this level of detail, as it’s part of the state’s due diligence in establishing who is responsible for tax compliance within your organization. 

5. Calculating Correct Tax Amounts 

Accurate tax calculation is essential for compliance. With over 13,000 tax jurisdictions in the United States, each with its own rates and rules, this can be a complex task. You need to consider not only state-level taxes but also county, city and special district taxes that may apply to a single transaction. 

6. Collecting and Managing Exemption Certificates 

If you sell to tax-exempt customers, such as resellers or nonprofit organizations, you need a system for collecting and managing exemption certificates. These documents prove that a sale is exempt from sales tax and must be readily available in case of an audit. Proper documentation and storage of these certificates are crucial for maintaining compliance. 

7. Filing Returns and Remitting Taxes 

The final step in the compliance process is filing returns and remitting the collected taxes to the appropriate authorities. Filing frequencies can vary by state and may depend on your sales volume. Some states require monthly filing, while others may allow quarterly or annual returns. Most states now prefer or require electronic filing, but some still accept paper returns. 

Common Challenges in Sales Tax Compliance

Staying compliant with sales tax regulations presents several challenges for businesses. Some of the most common include: 

• Keeping up with changing regulations: Tax laws and rates change frequently, requiring constant vigilance. 
• Managing multi-state obligations: As your business grows, you may find yourself dealing with tax requirements in multiple states, each with its own rules. 
• Dealing with audits and notices: State tax authorities may conduct audits or send notices requiring prompt and accurate responses. 
• Handling exemptions and resale certificates: Managing these documents and confirming their validity can be time-consuming and complex. 

Best Practices for Maintaining Sales Tax Compliance

To maintain sales tax compliance, consider implementing these best practices: 

• Maintain accurate records: Keep detailed transaction records, including sales data, exemption certificates, and filed returns. Use reliable record-keeping tools to help prepare yourself for potential audits. 
• Stay informed: There are several ways to stay on top of sales tax compliance, including the following:
  – Regularly review your physical and economic nexus status.
  – Invest in staff training and education on sales tax matters.
  – Consider joining industry associations or forums to stay updated on tax law changes. 
• Prepare for audits: Develop a process for handling audits, including designating responsible team members and organizing necessary documentation. 
• Utilize sales tax automation software: Implement technology solutions that can help automate the compliance process, from calculation to filing. 

Tools and Resources for Sales Tax Compliance

Technology solutions can significantly streamline your sales tax compliance efforts. Look for software that offers features such as: 

• Real-time tax calculation 
• Automatic updates for tax rates and rules 
• Integration with your existing business systems 
• Support for multi-state filings 
• Exemption certificate management 

Government resources, such as state Department of Revenue websites, can provide valuable information on tax laws and filing requirements. Additionally, consider consulting with sales tax professionals who specialize in sales tax to help ensure your business stays compliant as it grows and evolves. 

Simplify Sales Tax Compliance with Guidance and SALT Services from BPM

Sales tax compliance is a complex but essential aspect of running a successful business. By understanding your obligations, implementing best practices and leveraging the right tools and resources, including specialized State and Local Tax (SALT) services, you can minimize risk and help make sure your business remains compliant with ever-changing sales tax laws. 

For companies looking to navigate the complexities of sales tax compliance, working with experienced professionals can provide invaluable support and peace of mind. BPM offers comprehensive sales tax consulting and compliance services tailored to the unique needs of businesses like yours. Our team of specialists can help you develop and implement effective strategies to manage your sales tax obligations efficiently and accurately. 

To learn more about how BPM can assist with your sales tax compliance needs, contact us. 

 

Construction payroll compliance has always been complex. In 2026, it’s become even more challenging. 

The Department of Labor continues to increase enforcement activities across the construction sector. Companies that fail to comply face serious consequences—back wages, penalties, and potential debarment from federal contracts. A single mistake on a government project can cost your company thousands of dollars and damage your reputation with clients and bonding companies. 

The regulatory landscape keeps shifting. New forms, updated wage determinations, and changing state requirements mean you can’t simply rely on last year’s processes. Your competitors who invest in strong compliance systems are winning more bids and avoiding costly violations. They’re not smarter, they’re just more prepared. 

But here’s what many contractors miss: compliance isn’t just about avoiding penalties. Companies with optimized payroll systems report fewer project delays, better cash flow management, and stronger relationships with clients. When you can demonstrate solid compliance capabilities, you become the contractor that clients want on their high-value projects. 

This article will walk you through the critical payroll compliance requirements you need to master in 2026, the common pitfalls that trip up even experienced contractors, and practical steps to strengthen your compliance program this year. 

Federal Requirements You Can’t Ignore 

Federal construction projects bring opportunity and obligation in equal measure. You need to understand what’s required before you bid on government work. 

Davis-Bacon Act Compliance Remains Critical 

The Davis-Bacon Act applies to federal construction contracts exceeding $2,000. This means virtually every federal project requires prevailing wage compliance. You must pay workers the wage rates specified in the wage determination for your project location and worker classification. 

Many contractors underestimate the complexity here. Wage determinations vary by county, by project type, and by specific worker classification. The rate for a carpenter in one county can differ significantly from the rate in the adjacent county. You need to verify which wage determination applies to your project and ensure every worker receives the correct rate.  

Certified Payroll Submissions 

Weekly certified payroll reports remain mandatory for Davis-Bacon projects. You must submit these reports even during weeks when no work occurs on the covered project. The WH-347 form requires detailed information including worker names, classifications, hours worked each day, wage rates, and fringe benefits provided. 

Late submissions trigger investigations. Incomplete submissions create compliance risks even when you’ve paid workers correctly. Prime contractors bear responsibility for ensuring all subcontractors submit their certified payrolls on time and completely. 

Overtime Calculation Challenges 

Fair Labor Standards Act overtime requirements apply to all construction work. You must pay overtime at the rate required by the state where the work was completed. This sounds straightforward until you consider construction’s realities. 

Workers often perform different job classifications within a single week. Your laborer might operate equipment one day and perform carpentry work the next. When calculating overtime, you need to use either a weighted average of all rates worked or pay overtime at the highest rate. Getting this wrong creates liability. 

State and Local Complications 

Federal requirements establish the floor. Many states impose additional obligations that exceed federal standards. 

State Prevailing Wage Laws  

Over 30 states maintain their own prevailing wage laws—often called “Little Davis-Bacon” Acts. These laws apply to state-funded projects and frequently include requirements that differ from federal standards. 

California requires prevailing wages on virtually all public works with no dollar threshold. New York applies prevailing wage requirements to projects exceeding $1,000. Each state maintains its own wage determinations, filing requirements, and penalty structures.  

When your project receives both federal and state funding, you must comply with both sets of requirements. This typically means applying the higher wage rate and meeting the more restrictive administrative requirements of each jurisdiction.  

Daily Overtime Requirements  

Some states require daily overtime in addition to weekly overtime. California mandates overtime pay for hours worked over eight in a single day, regardless of total weekly hours. This significantly impacts labor costs and scheduling decisions.  

You need systems that track both daily and weekly hours and automatically calculate overtime according to the applicable state requirements. Manual tracking creates too much room for error.  

Multi-State Project Challenges  

Projects spanning state lines create compliance nightmares. A highway project crossing from one state to another might subject you to different wage rates, overtime rules, and tax obligations on each side of the border.  

You must track where each worker performs work each day. The location determines which wage rates apply, which overtime rules govern, and which state taxes you must withhold. Workers who travel between states in a single week require even more careful tracking. 

Explore State and Local Tax Services

Common Violations and How to Avoid Them  

The Department of Labor’s enforcement data reveals consistent patterns. Understanding these common violations helps you prevent problems before they occur.  

Worker Misclassification  

Worker misclassification remains the most frequent and costly violation. This includes both employee versus independent contractor misclassification and incorrect wage classifications for prevailing wage purposes.  

Paying a skilled tradesperson as a laborer to reduce costs is tempting. It’s also illegal and expensive when discovered. The Department of Labor examines the actual work performed, not the job title you assign. When workers perform skilled work, they must receive skilled rates. 

Incomplete Recordkeeping  

Poor records undermine even accurate payroll processing. You must maintain detailed records of hours worked, wage rates applied, and fringe benefits provided for at least three years after project completion.  

Many violations occur not because contractors paid workers incorrectly, but because they couldn’t prove they paid correctly when audited. Your records must demonstrate compliance, which requires organized systems and consistent documentation practices.  

Travel Time Miscalculations  

Construction’s mobile workforce creates travel time complications. Regular commuting from home to your normal work location isn’t compensable. Travel from your shop to a distant job site typically is compensable.  

The distinction can be subtle. Many contractors apply blanket policies that don’t account for specific situations, creating liability when workers should have been paid for travel time but weren’t.  

Learn More About Our Payroll Services For Construction 

Technology Solutions for 2026  

Manual payroll processing can’t keep pace with modern compliance requirements. Construction-specific payroll systems provide the automation and accuracy you need.  

Automated Compliance Calculations  

Modern systems automatically apply the correct wage rates based on project location and worker classification. They calculate overtime using appropriate methods for multi-classification workers and flag potential compliance issues before processing.  

These systems maintain current wage determinations and update automatically when new rates take effect. You eliminate the risk of using outdated rates or applying incorrect geographic determinations.  

Mobile Time Collection  

Field workers need easy ways to record time from job sites. Mobile applications allow time entry from any location with GPS verification confirming workers are at assigned sites. This eliminates the delays and errors that occur when workers record time on paper forms that must be transported to the office and manually entered into systems. 

Integrated Reporting  

Comprehensive systems generate certified payroll reports automatically with all required information. They maintain audit trails documenting all payroll decisions and calculations. When the Department of Labor requests documentation, you can produce organized, complete records quickly. Integration with your accounting and project management systems ensures consistency across all business functions and eliminates duplicate data entry.   

Your 2026 Action Plan  

Strong compliance doesn’t happen by accident. You need systematic approaches and sustained attention.  

1. Start with a comprehensive assessment of your current systems and processes. Identify gaps between your current practices and regulatory requirements. Prioritize improvements based on risk and impact.  

2. Invest in the right technology that automates complex calculations and maintains current compliance requirements. Generic payroll systems lack the features you need for construction compliance.  

3. Develop training programs for everyone involved in payroll compliance—from field supervisors recording time to office staff processing payroll. Regular training keeps skills current as requirements evolve.  

4. Establish monthly compliance reviews examining calculation accuracy, classification compliance, and documentation completeness. Quarterly audits should evaluate your entire system, not just individual transactions.  

Partner with BPM for Construction Payroll Compliance Confidence  

Construction payroll compliance demands specialized knowledge and systems. You need partners who understand the construction industry’s unique challenges and can provide practical guidance that works in the real world.  

BPM works with construction companies to build and maintain comprehensive compliance programs. We help you implement systems that prevent violations while supporting efficient operations. Our construction industry specialists understand prevailing wage requirements, multi-state compliance challenges, and the technology solutions that make compliance achievable.  

To assess your current compliance capabilities and develop a plan that protects your business while positioning you for growth in 2026’s competitive market, contact us.    

The landscape for nonprofits receiving federal funding has shifted dramatically in recent months. Organizations that rely on government grants and contracts now face uncertainty about diversity, equity, and inclusion requirements. Many are asking critical questions: What should we document? How should we update our Form 990? What happens if federal funding becomes unreliable?  

If your nonprofit receives federal dollars, you need to understand how these changes affect your compliance obligations and what steps you can take to protect your organization’s financial stability. This article will explore documentation considerations for Form 990, strategies for navigating DEI certification requirements, and ways to diversify your funding to reduce dependency on federal sources. 

Understanding the Current Environment 

Federal agencies have begun rolling back or reassessing DEI-related requirements for grant recipients. Some nonprofits are proactively reviewing their documentation and reporting practices to align with evolving expectations. Others are taking a wait-and-see approach. Neither strategy is inherently wrong, but both require careful documentation of your decision-making process. 

The key is to act deliberately rather than reactively. Your board and leadership team should discuss these changes and document your organization’s position. This creates a clear record of your governance process and demonstrates thoughtful stewardship. 

Form 990 Documentation Considerations 

Your Form 990 serves as a public record of your nonprofit’s activities, governance, and financial health. As you prepare your next filing, consider how you describe programs and initiatives that previously fell under a DEI framework. 

Review Part III, which asks about your program service accomplishments. If you’ve described programs using DEI-specific language in past filings, evaluate whether that language still aligns with your current approach and any applicable federal requirements. The goal isn’t to hide your mission or values but to describe your work accurately and in compliance with current guidance. 

Part VI addresses governance and management policies. If your organization has adopted specific DEI policies or practices, document the business rationale behind them. Can you tie these initiatives to your exempt purpose? Do they serve your beneficiaries more effectively? Clear documentation protects your organization if questions arise later. 

Navigating Certification Requirements 

Some federal grants and contracts require certifications related to nondiscrimination and equal opportunity. These requirements haven’t disappeared, but the emphasis and interpretation may have changed. Review your current federal awards carefully to understand what certifications you’ve made and what ongoing obligations you have. 

Work with your grant managers to identify which federal agencies fund your organization and what their current guidance says about DEI-related certifications. Don’t assume that yesterday’s requirements still apply today, but also don’t assume they’ve vanished entirely. The regulatory environment remains fluid. 

Diversifying Your Funding Sources 

This moment of uncertainty highlights a risk that many nonprofits face: overreliance on federal funding. Organizations with diverse revenue streams can better weather policy changes and funding disruptions. 

Donor-advised funds (DAF) represent one avenue worth exploring. DAFs have grown substantially in recent years, and donors who use them often seek meaningful charitable partnerships. Unlike federal grants with extensive compliance requirements, DAF grants typically come with fewer strings attached. Building relationships with DAF sponsors and their donors can provide more flexible funding. 

Individual giving campaigns, corporate partnerships, foundation grants, and earned revenue strategies all contribute to a healthier funding mix. No single source should represent such a large percentage of your budget that its loss would threaten your organization’s survival. 

Documentation Best Practices 

Whatever approach your organization takes, document your process thoroughly. Board meeting minutes should reflect discussions about compliance changes and strategic decisions. Create a paper trail that shows your leadership took these matters seriously and acted in the organization’s best interest. 

Maintain records of any communications with federal program officers about changing requirements. Save copies of guidance documents and policy announcements. If you modify programs or policies in response to new federal expectations, document why you made those changes and what alternatives you considered. 

This documentation serves multiple purposes. It demonstrates good governance to your stakeholders. It provides evidence of compliance if auditors or regulators ask questions. And it creates institutional memory so future leaders understand the context for decisions made during this transitional period. 

Learn more about our Nonprofit Industry Solutions

Working With BPM  

Navigating compliance changes while maintaining your mission requires both technical knowledge and strategic thinking. BPM’s nonprofit practice works with organizations facing exactly these challenges. We help clients review their Form 990 disclosures, assess their documentation practices, and develop strategies to strengthen their financial position. 

Our team understands that compliance isn’t just about checking boxes. It’s about protecting your organization’s ability to serve your community for years to come. Whether you need support with specific technical questions or want to explore broader strategic planning around funding diversification, we’re here to help. To discuss how we can support your nonprofit through this period of change, contact us.  

You hired good people. They know your properties, understand your processes, and have kept your books in order for years. But somewhere along the way, the work changed. The portfolio grew, the transactions got trickier, and the demands on your accounting team multiplied faster than you could add resources.  

Now you’re noticing things you didn’t see before. Reports that used to arrive on time are delayed. Questions from investors take longer to answer. Your team seems buried under routine tasks with no time left for the kind of financial analysis that actually moves the business forward. 

7 Signs it’s Time to Outsource Your Real Estate Accounting 

The issue isn’t performance. It’s capacity. And when your internal team has hit its limit, continuing to push harder won’t solve the problem. This article walks through the clear indicators that your accounting function needs more support than your current team can provide. 

1. Your Team is Constantly Playing Catch-Up 

When your accounting team is always behind, it’s not just frustrating. It’s a sign that workload has exceeded capacity. Monthly closes that should take days are dragging into weeks. Reconciliations sit untouched until quarter-end. Investor reports go out late, and you’re scrambling to pull numbers together when lenders or auditors come calling. 

This isn’t a reflection of effort. Your team is likely working long hours just to stay afloat. The problem is volume. As your portfolio grows, so does the number of transactions, entities and reporting requirements. What worked for 15 properties doesn’t scale to 50. What worked with one state now applies to five. 

When your team can’t keep pace, decisions get delayed. You’re making choices based on outdated financials or incomplete data. That uncertainty slows growth and creates risk you didn’t sign up for.  

2. Errors Are Becoming More Frequent 

Mistakes happen. But when they happen regularly, that’s a red flag. Misclassified expenses, incorrect allocations, missed accruals, or reconciliations that don’t tie out all point to the same issue: your team doesn’t have the bandwidth to maintain accuracy. 

Real estate accounting requires attention to detail. Capital improvements need to be separated from repairs. Depreciation schedules must be updated when assets are acquired or sold. Equity waterfalls have to be calculated correctly, or your investors will notice. These aren’t tasks you can rush through or handle on autopilot. 

Errors also compound. A small mistake in January becomes a bigger problem by June. Correcting those mistakes takes time your team doesn’t have, which pulls them further behind and increases the chance of more errors down the line. 

If your accounting function feels like it’s constantly fixing problems instead of preventing them, you’ve outgrown your current setup. 

3. You’re Missing Opportunities for Tax Planning and Strategy 

Good accounting isn’t just about recording what happened. It’s about planning for what’s next. When your team is buried in data entry and month-end close tasks, there’s no time left for strategic work like tax planning, cost segregation analysis, or entity structure optimization. 

Real estate offers significant tax advantages, but only if you plan ahead. Properly timed 1031 exchanges, bonus depreciation strategies, and entity restructuring can save you substantial money. You’ve even heard about how a REIT structure could be something to look into, but these opportunities require proactive analysis and coordination with your tax advisors. If your internal team is too busy keeping up with daily tasks, those opportunities slip by. 

An outsourced team brings capacity for both compliance and strategy. They can handle the routine work while also identifying planning opportunities that your internal staff simply doesn’t have time to pursue. 

4. You Don’t Have Proper Segregation of Duties 

In smaller accounting teams, the same person often handles multiple functions. They enter bills, cut checks, reconcile accounts, and prepare reports. While this might seem efficient, it creates serious risk. Without proper separation of responsibilities, errors go unnoticed and opportunities for fraud increase. 

Segregation of duties is a fundamental internal control. Different people should be handling transaction entry, approval, payment processing, and reconciliation. When one person controls too much of the process, there’s no system of checks and balances to catch mistakes or prevent intentional misconduct. 

If your team is too small to properly separate these functions, outsourcing provides built-in controls. Responsibilities are divided across multiple professionals, creating natural oversight and reducing your exposure to both error and fraud. 

5. Your Technology Isn’t Keeping Pace with Your Needs 

Spreadsheets have their place, but they shouldn’t be running your accounting function. If your team is relying on Excel to manage rent rolls, track capital projects, or prepare investor distributions, you’re taking on unnecessary risk and inefficiency. 

Real estate portfolios need real estate accounting systems. Platforms like Yardi, AppFolio, or Sage Intacct are built to handle property-level reporting, multi-entity structures and investor allocations. They automate tasks that would otherwise eat up hours of staff time and provide visibility that spreadsheets can’t match. 

The problem is that implementing and managing these systems requires time, training, and ongoing support. If your internal team doesn’t have the capacity to make that transition, you’ll stay stuck in manual processes that hold you back. 

Outsourced accounting teams already work within these platforms. They bring the systems, training, and experience to use them effectively from day one. 

6. Investor and Lender Reporting is Becoming a Burden 

Your investors expect timely, accurate financial reports. Your lenders have covenant requirements and quarterly reporting deadlines. When your internal team is struggling just to close the books, preparing these reports becomes a scramble. 

Late or incomplete investor reports damage trust. Missed loan covenant deadlines can trigger penalties or default provisions. These aren’t small issues. They directly affect your ability to raise capital and maintain relationships with financing partners. 

An outsourced team treats investor and lender reporting as part of the standard process, not an added burden. They know what these stakeholders need, when they need it and how to present it in a way that builds confidence rather than raising questions. 

7. You Can’t Scale Without Adding Significant Headcount 

Growth is the goal, but it shouldn’t require doubling your accounting staff every time you add properties. Hiring, training, and managing an internal team takes time and money. Turnover creates gaps in knowledge and continuity. And even after you’ve built the team, you still need to invest in systems, processes, and oversight. 

Outsourcing gives you scalability without the overhead. Whether you’re adding 10 units or 100, the outsourced team adjusts capacity to match your needs. You’re not hiring, training, or managing additional staff. You’re not worrying about turnover or coverage during vacations and sick days. You get consistent service that scales with your portfolio. 

This flexibility is especially valuable during periods of rapid growth or transition. Your accounting function can expand or contract based on what the business needs without the long-term commitments that come with internal hires. 

Learn more about our Outsourced Accounting Services

Let BPM Take the Weight Off Your Internal Team 

Recognizing that you’ve outgrown your current accounting setup isn’t admitting defeat. It’s making a smart business decision based on where you are now and where you want to go next. Your internal team has done good work, but asking them to do more with the same resources won’t change the outcome. 

BPM steps in where your capacity ends. We handle everything from routine monthly closes to complex investor reporting and tax planning, giving you the financial infrastructure a growing real estate portfolio demands. To learn how outsourced accounting can transform your operations, contact us.  

The IRS has issued interim guidance in Notice 2026-11 on January 14, 2026, providing interim guidance on the additional first year depreciation deduction (“bonus depreciation”), following the enactment of the One Big Beautiful Bill Act (P.L. 119-21, OBBBA).  

The OBBBA makes 100% bonus depreciation permanent for qualified property acquired and placed in service after January 19, 2025. Notice 2026-11 explains how taxpayers can apply that rule now—before Treasury/IRS issue proposed regulations—and outlines key elections and special rules (including new rules for qualified sound recording productions). 

The Permanent 100% Bonus Depreciation Rule (Post–January 19, 2025 Property) 

The OBBBA amended the bonus depreciation rules to provide a permanent 100% additional first-year depreciation deduction for qualified property acquired and placed in service after January 19, 2025 (and for certain specified plants planted or grafted after that date), where original use of new or certain used property commences with the taxpayer. 

As modified, qualified property generally includes the following types of property:  

• tangible property with a MACRS recovery period of 20 years or less,  
• certain computer software;  
• water utility property;  
• certain productions (film/TV/theatrical);  
• qualified sound recording productions; and  
• certain trees/vines/fruit-bearing plants may qualify when planted or grafted (with an election). 

Acquisition Date and Binding Contracts 

For property to qualify for 100% bonus depreciation, it must be acquired after January 19, 2025. The Notice maintains the current regulatory framework while substituting revised implementation dates. 

Specifically, to determine whether depreciable property is acquired after January 19, 2025, taxpayers apply rules consistent with existing bonus depreciation regulations (and consolidated return rules, where applicable) by substituting: 

• “January 19, 2025” for “September 27, 2017”, and 
• “January 20, 2025” for “September 28, 2017”.  

Written Binding Contract Rule 

The Notice states that property is considered acquired when a taxpayer enters a written binding contract for its purchase. A written binding contract is one enforceable under state law against the taxpayer without limiting damages to a set amount. 

Consistent with that framework, client impacts most commonly arise when capital projects span the effective date—e.g., orders placed or contracts executed before January 20, 2025, but the asset is delivered/installed later. 

Self-Constructed Property 

For self-constructed projects, the Notice continues to rely on established standards for when construction begins—using either the “physical work of a significant nature” test or the 10% safe harbor. Consistent with current law, self-constructed property meets the acquisition date requirements when the taxpayer begins construction, manufacture, or production of the property. 

This is important for real estate development and large capital projects where different components may be started at different times. 

Elections and Special Rules 

Notice 2026-11 emphasizes that taxpayers have several elections that can materially affect both (i) the amount of immediate deduction and (ii) future depreciation deductions. 

Bonus Elections 

• Taxpayers may elect to claim a reduced bonus depreciation rate of 40% (or 60% for certain long production period property and aircraft) for property placed in service in the first taxable year ending after January 19, 2025. This election is only available for the first taxable year ending after January 19, 2025. 
• Taxpayers may also elect out of bonus depreciation for any class of property, as under prior law. 
• These elections must be done on a timely filed tax return with an attached statement. 

Therefore, for the first tax year ending after January 19, 2025, a taxpayer has three choices available:  

• Taking 100% bonus depreciation; 
• Electing 40% bonus depreciation; or  
• Electing out of bonus depreciation. 

Component Election 

The Notice continues to permit taxpayers to elect component depreciation for individual elements within a larger self-constructed project. Eligible components may qualify for the 100% additional first-year depreciation deduction, even if the overall project does not satisfy the acquisition date requirement, provided each component independently meets the applicable criteria. This provision is particularly relevant for extensive projects where certain parts commence early while subsequently added components may still be eligible based on their specific acquisition or production dates. This election is made by attaching a statement to a timely filed return (including extensions). 

Election for specified plants 

Notice 2026-11 permanently allows taxpayers to elect bonus depreciation under §168(k)(5) for specified plants planted or grafted after January 19, 2025, as part of their regular farming business. This election is made by attaching a statement to a timely filed return (including extensions). 

Learn more about the Tax Consulting Services

New: Qualified Sound Recording Productions 

Current law allows certain taxpayers to elect to deduct certain aggregate production costs of any qualified film, television or live theatrical production commencing before January 1, 2026, but did not allow a deduction for sound recording productions. The OBBBA expands bonus depreciation eligibility to include qualified sound recording productions commencing in taxable years ending after July 4, 2025. 

For these productions: 

• A qualified sound recording production is treated as acquired when “principal recording” commences. 
• The production is considered placed in service at the time of initial release or broadcast. 

Additionally, to qualify for 100% bonus depreciation the production must be produced and recorded in the United States and commence in a tax year ending after July 4, 2025. 

Reliance and next steps 

Notice 2026-11 allows taxpayers to rely on the interim rules for eligible property placed in service in taxable years beginning before the forthcoming proposed regulations are published in the Federal Register, provided the taxpayer follows the Notice’s guidance in its entirety for all eligible property placed in service in those taxable years, beginning with the first year of reliance. 

What to consider 

• Capital expenditure timing. Review which assets were acquired and placed in service after January 19, 2025, since that timing drives access to the permanent 100% deduction. 
• Contracts and construction start dates. For major purchases or construction projects spanning the effective date, evaluate whether acquisition is impacted by written binding contract timing and—where relevant—construction commencement rules. 
• Elections strategy. Consider whether to: 
• use the transition 40% election in the first affected year, or 
• elect out of bonus depreciation by class for the year, or 
• evaluate component elections for large self-constructed projects.  

If you have questions about how these changes may affect your business or would like to discuss planning opportunities, please reach out. 

Salt Lake City has emerged as one of the nation’s top-performing metropolitan economies, and as we look ahead to 2026, the region is positioned to build on this momentum while navigating new constraints on expansion. As organizations evaluate their strategic positioning for the year ahead, understanding the key trends shaping this dynamic market becomes essential for informed decision-making. 

Economic Growth Moderates but Remains Resilient 

Utah’s real GDP growth led the nation at 4.5% in 2024, significantly outpacing the national average of 2.8%, while the state’s nominal GDP surpassed $300 billion for the first time. Looking ahead to 2026, expect: 

• Continued economic expansion at a more moderate pace following the projected 1.5% to 2% growth in 2025 
• Residential construction of approximately 23,000 new units and existing home sales around 36,900, with median home prices increasing roughly 2% 
• Slower job and demographic growth as housing costs continue constraining expansion 
• Unemployment rates remaining below national averages despite cooling from historic lows 

The fundamentals supporting Salt Lake City’s economy—including a young, educated workforce and competitive regulatory environment—position the region for steady performance even as growth rates normalize from their exceptional 2024 levels. 

Trusted Tax, Accounting, Audit & Advisory Services in Greater Salt Lake City 

Tech Sector Dominance Deepens 

Salt Lake City’s tech workforce has grown to over 67,500 jobs, ranking as the fourth-ranked tech market in North America. In 2026, the “Silicon Slopes” ecosystem will continue attracting investment and talent: 

• Tech salaries averaging $120,000+ with specialized roles in AI, cloud computing, and cybersecurity commanding over $200,000 annually 
• Continued venture capital flows supporting startup growth and expansion 
• Over 1,000 biotech companies employing nearly 40,000 workers driving innovation in genomics and medical diagnostics 
• Major tech employers including Adobe, Microsoft, and Oracle expanding their regional presence 

The convergence of technology, biotech, and advanced manufacturing will create new partnership opportunities across industries throughout 2026. 

Downtown Entertainment District Takes Shape 

Downtown visitor days increased 3.6% year-over-year in 2024, with worker days jumping 10.5%, and 2026 will see accelerated transformation as major projects progress: 

• The $4 billion entertainment district investment anchored by professional sports franchises moving forward with new hotels, convention facilities, and arts organizations 
• Salt Palace Convention Center rebuild advancing to accommodate high-value conventions 
• Downtown residential population on track toward the projected 28% increase by 2030 
• Temple Square renovation nearing completion ahead of the anticipated 2027 open house that could draw 3-5 million visitors 

These investments position 2026 as a pivotal year for downtown’s evolution into a premier entertainment and convention destination. 

Housing Affordability Remains Critical Challenge 

Salt Lake City added 4,450 new residents between 2023 and 2024, and population growth will continue outpacing housing supply in 2026: 

• Utah remains the ninth most expensive housing market nationally with median single-family home prices around $547,700 
• Equilibrium in the multifamily market expected by 2027 following significant deliveries in 2024-2025 
• Rental rates showing little change with Salt Lake County averaging $1,593 monthly 
• Housing constraints continuing to impact workforce recruitment and retention 

The tension between strong in-migration and limited housing inventory will persist as a defining challenge for businesses throughout 2026. 

Advanced Manufacturing Expansion Accelerates 

AeroVironment’s new manufacturing facility near Salt Lake City International Airport begins production in the second half of 2025, marking 2026 as the first full year of operations for this aerospace and defense investment. Additional manufacturing drivers include: 

• Established employers like L3Harris Technologies (3,500 workers) and BioFire Diagnostics (1,900 employees) continuing expansion 
• Advanced manufacturing spanning aerospace components, medical devices, and specialty materials 
• Strategic transportation infrastructure supporting Western region distribution 

Infrastructure Projects Create Near-Term Disruption 

Multiple major construction initiatives will impact travel and commerce throughout 2026: 

• Complete reconstruction of 600/700 North between 800 West and Redwood Road with six to eight months of road closure for bridge replacement 
• Additional street reconstruction projects including 1300 East and other key corridors 
• Pioneer Park redesign beginning construction in Fall 2025, continuing into 2026 
• Sustainable infrastructure initiatives advancing across multiple city departments 

While these projects will create logistical challenges, they represent long-term investments in safety, connectivity, and sustainability. 

Strategic Imperatives For 2026 

Organizations planning for the year ahead should prioritize: 

• Workforce Strategy Refinement: With job growth projected at 1.5% to 2% amid continued housing cost pressures, companies must differentiate their employee value propositions through competitive compensation, flexible work arrangements, and relocation support. 
• Real Estate And Facility Planning: The commercial real estate landscape is shifting as office-to-residential conversions accelerate and downtown development progresses. Organizations should reassess space needs and consider how the evolving urban core impacts employee commutes and client access. 
• Supply Chain Resilience: Major infrastructure projects through 2026 will require contingency planning for transportation delays. Companies should map construction impacts and develop alternative routing strategies. 
• Technology Investment Acceleration: The region’s tech sector momentum creates both competitive pressure and collaboration opportunities. Organizations across all industries should evaluate how emerging technologies can drive efficiency and growth. 
• Scenario Planning For Economic Shifts: With growth moderating from 2024’s exceptional pace and potential policy changes at the federal level, building flexibility into 2026 operating plans will be essential. 

How BPM Can Support Your 2026 Success 

As Salt Lake City enters a year of continued transformation, companies need forward-thinking advisors who can help navigate both opportunities and challenges. BPM’s professionals provide comprehensive guidance on: 

• Strategic tax planning optimized for evolving federal and state policy landscapes 
• Financial modeling and forecasting to support investment decisions and scenario planning 
• Workforce planning, compensation benchmarking, and employee retention strategies 
• Operational efficiency improvements leveraging technology and process optimization 
• Risk assessment and mitigation for supply chain, real estate, and economic uncertainties 

Contact BPM today to discuss how our team can help your organization capitalize on Salt Lake City’s growth trajectory while successfully managing the complexities ahead in 2026. 

Tax season shouldn’t feel like a scramble. Yet for many people, it does. Often, the issue isn’t just about taxes themselves. It’s about whether your tax preparer is truly serving your evolving financial needs. 

As your life changes, whether through career advancement, investment growth, major purchases, or retirement planning, your tax situation becomes more complex. The person who helped you file a simple 1040 five years ago may no longer be equipped to handle where you are today. 

So how do you know when it’s time to make a change? 

Top Signs You’ve Outgrown your Tax Preparer 

This article will walk you through five clear signs that you’ve outgrown your current tax preparer and need someone who can grow with you. 

1. You Only Hear from Them Once a Year 

Does your tax preparer disappear after April 15th, only to resurface the following tax season? If so, you’re missing out on valuable year-round support. 

Tax preparation shouldn’t be a once-a-year transaction. Your financial life doesn’t pause between filing deadlines, and neither should your tax strategy. Major life events, like getting married, buying a home, changing jobs, or receiving an inheritance, all have tax implications that need to be addressed when they happen, not months later. 

A good tax preparer stays engaged throughout the year. They check in proactively, answer questions as they arise, and help you make informed decisions in real time. 

“The best time to call your CPA is before you make the decision, not after,” says Edmond Zhou, a Partner in BPM’s Private Client Services Group. “By the time clients come to us after executing a transaction, their options are limited. Some mistakes can be corrected, but it’s almost always more expensive to fix than prevent—and certain tax consequences are permanent. When clients involve us proactively, we can help structure decisions to optimize their tax position and avoid pitfalls that could have lasting financial impact.” 

2. There’s No Planning Happening 

Here’s a critical distinction: tax preparation and tax planning are not the same thing. 

Tax preparation is backward-looking. It’s about reporting what already happened. Tax planning is forward-looking. It’s about strategically positioning yourself to minimize your tax burden in the years ahead. 

If your tax preparer only asks for your documents, runs the numbers, and files your return without discussing strategies to reduce your future tax liability, you’re not getting the full picture. 

Are they talking to you about: 

• Roth conversions? 
• Tax-loss harvesting?
• Estate planning? 
• Estimated tax payments? 
• Retirement contribution strategies? 
• How to structure income from side businesses or rental properties? 

If these conversations aren’t happening, you’re leaving money on the table. 

3. They Don’t Ask About Your Life Changes 

Did you get a promotion with stock options? Start a side business? Move to a different state? Have a child? If your tax preparer isn’t asking about these changes, they’re not paying attention. 

Life changes trigger tax implications. A good tax preparer doesn’t wait for you to volunteer this information, they actively ask questions and probe for updates that could affect your tax situation. 

When someone takes a hands-off approach and simply processes whatever documents you send, they can’t provide the tailored guidance you need. Your taxes should reflect your unique situation, not a cookie-cutter approach. 

4. You Don’t Understand Your Return 

Do you know why you got a refund or owed money? Can you explain the deductions on your return? Do you understand how your withholding affects your take-home pay? If the answer is no, your tax preparer isn’t educating you. 

You shouldn’t feel confused about your own finances. A good tax preparer takes time to explain your return in plain language, walks you through the key numbers, and helps you understand the “why” behind everything. 

When you understand your taxes, you can make better financial decisions throughout the year. You’ll know whether to adjust your withholding, when to make estimated payments, and how different choices will impact your bottom line.  

5. Your Situation Has Become More Complex 

Maybe when you started working with your current tax preparer, you had a straightforward W-2 and a standard deduction. That was enough back then. 

But now things look different. Perhaps you have: 

• Multiple income streams 
• Investment accounts with dividends and capital gains 
• Rental property 
• A small business or freelance work 
• Kids heading to college 
• Aging parents you support financially 
• Estate planning considerations 

If your financial situation has evolved but your tax preparer’s services haven’t, you’ve outgrown them. Complexity requires someone who can navigate the nuances and find opportunities you didn’t even know existed. 

Learn more about our Private Client Services

Making the Switch to BPM   

Recognizing these signs is the first step. The next step is finding a tax preparer who views your financial success as a partnership that can grow along with your needs.  

At BPM, we believe tax preparation should be just one piece of a comprehensive approach to your financial life. We provide year-round support, proactive tax planning, and personalized strategies that adapt as your life changes. Our team takes time to understand your goals, answer your questions, and ensure you feel confident about every decision. 

To schedule a consultation and discover how strategic tax planning can make a real difference in your financial future, contact us.  

What You Need to Know About 401(k) Audit Requirements

Your retirement plan audit can be daunting, but it doesn’t have to be. The blend of compliance and financial factors makes these audits complex, but by knowing what to expect and working with a team of experienced professionals, you can stay ahead of the game. The following reviews the basic 401(k) audit requirements so you can get started confidently.

Does Your Company Need a 401(k) Audit?

Generally required for plans with more than 100 participants with account balances on the first day of the plan year, employee retirement plan audits are required for “large” plans. They are official inspections to ensure that the plan meets guidelines and regulations set by the Internal Revenue Service (IRS) and the Department of Labor (DOL). Audits must be conducted by an independent accounting firm using Generally Accepted Audit Standards (GAAS). They also need to adhere to DOL and Employee Retirement Income Security Act (ERISA) of 1974 regulations.

An employee pension audit serves two primary purposes:

1. to ensure that your plan complies with DOL and IRS regulations, along with the plan-related documents, and
2. to determine that the financial information reported on Form 5500 and company financial statements is accurate and in compliance with Generally Accepted Accounting Principles (GAAP).

Explore Our Employee Benefit Plan Audit Service

What Does a 401(k) Audit Involve?

Once you and your third-party administrator (TPA) determine that you need an audit, the next step is to hire a qualified CPA firm like BPM to conduct the audit.

Unlike financial statement audits, much of the audit information will be provided to your audit firm directly from your TPA. It is important to determine whether you are in audit status as soon as possible and provide sufficient time for the audit process in advance of the audit deadline.

401(k) Audit Requirements

At a minimum, your auditor will request the following documents:

• Copies of the plan documents, including the Plan’s adoption agreement, basic plan document, summary plan description, IRS opinion letter and investment policy.
• Copy of the Plan’s Form 5500.
• Copy of the Plan’s fidelity insurance bond.
• Retirement plan/Investment committee meeting minutes.
• Employee census report.
• Payroll reports.
• Evidence of documented participant birth and hire dates (such as Form I9s) for selected participants.
• Schedule of remittances made to the retirement plan trust.
• Documentation of internal controls and procedures, including procedures for payroll, eligibility, contributions, distribution and loans.
• Audit package from your third-party administrator.

What a 401(k) Audit Looks Like When You Work with BPM

If you’re a first-year client, we’ll begin with a kick-off meeting to walk you through all the steps, so you know what to expect. We will let you know what needs to be provided by the company, the TPA and the investment advisor (if there is one), and we’ll provide you with our proprietary pre-planning checklist so you can get started quickly and easily.

We also provide our clients with information about fiduciary requirements and best practices, assisting with appropriate referrals when needed. Whenever possible, we communicate directly with your TPA, so you can focus on your core business. We make every effort to reassign our staff to the same clients each year to establish continuity.

Furthermore, we pride ourselves on being able to provide sound advice to our clients. BPM’s employee benefit plan audit team consists of dedicated professionals with extensive knowledge of ERISA, DOL and IRS guidelines, along with years of experience. We are proud to have been one of the first firms to join the AICPA’s Employee Benefit Plan Audit Quality Center, a public policy organization dedicated to fostering high-quality performance by public company auditors. performance by public company auditors.

If you are facing a 401(k) audit, contact Ryan Davis, Partner and Employee Benefit Plan Audit Leader, for a consultation on getting started.

Download the e-book, “Navigating 401(k) audits and compliance: A guide for today’s leaders” for insights on retirement plan management and regulatory compliance.

Your business is growing. Revenue is climbing, and new opportunities appear daily. But somewhere between managing operations and chasing the next milestone, your financial picture has become murky. You’re not alone in this challenge. 

Many growing companies reach a point where spreadsheets and basic bookkeeping no longer cut it. Strategic financial leadership becomes necessary, but hiring a fractional CFO isn’t financially viable or operationally justified. This gap creates real problems that can slow growth or lead to costly mistakes. 

8 Key Signs It’s Time to Hire a Fractional CFO 

A fractional CFO offers a solution. These seasoned finance professionals work with your company part-time, providing high-level financial guidance without the full-time salary and benefits package. They bring strategic thinking to your financial operations and help you make smarter decisions about your company’s future.  

This article explores the eight clear indicators that signal it’s time to bring a fractional CFO onto your team.  

1. Your Financial Reports Don’t Tell You What You Need to Know 

You receive monthly financial statements, but they don’t answer your pressing questions. How much runway do you have? Which products or services actually generate profit? Where should you invest next quarter? 

Basic accounting creates historical records. Strategic finance provides forward-looking insights. When your financial reports leave you guessing about critical business decisions, you need someone who can transform data into actionable intelligence. 

2. Cash Flow Has Become Unpredictable 

Money comes in and goes out, but you can’t predict when or how much. You’ve had months where the bank balance looked healthy, only to scramble for cash weeks later. This volatility makes planning nearly impossible. 

A fractional CFO builds cash flow forecasting models that account for your business cycles, payment terms, and growth trajectory. They help you understand when cash crunches will occur and create strategies to smooth out the bumps. 

3. You’re Preparing to Raise Capital 

Investors ask tough questions. They want detailed financial projections, clear unit economics, and proof that you understand your numbers inside and out. Preparing for a funding round while running your business stretches you thin. 

Fractional CFOs speak the language investors expect. They build the financial models, prepare the materials, and help you tell your financial story convincingly. Their involvement signals to investors that you take financial management seriously. 

4. Pricing Feels Like Guesswork 

You set prices based on competitors or gut instinct. You’re not confident about your margins, and you suspect some products or services might actually lose money. Without clear cost analysis, pricing becomes a shot in the dark. 

Strategic pricing requires understanding your true costs, including overhead allocation, customer acquisition costs, and lifetime value. A fractional CFO breaks down these numbers and helps you price for profitability, not just revenue. 

5. You’re Considering a Major Business Decision 

Acquisitions, new product launches, geographic expansion, or significant equipment purchases all carry financial implications that ripple through your business. These decisions demand rigorous financial analysis, not back-of-the-envelope calculations. 

A fractional CFO models different scenarios, identifies risks, and quantifies potential returns. They help you understand the full financial impact before you commit resources to major initiatives. 

6. Your Accounting Team Is Overwhelmed 

Your bookkeeper or controller does excellent work keeping the books clean and taxes filed. But they’re drowning in daily transactions and month-end close activities. They don’t have time for strategic planning, and that’s not where their strengths lie anyway. 

Fractional CFOs work alongside your accounting team, not instead of them. They provide strategic oversight while your existing team continues handling day-to-day operations. This combination gives you both tactical execution and strategic direction. 

7. Compliance and Regulatory Requirements Are Growing 

Your industry faces increasing regulation. New reporting requirements demand attention. An audit is coming, and you’re not prepared. These compliance challenges consume time and create risk if handled incorrectly. 

Fractional CFOs bring experience navigating regulatory requirements across multiple companies and industries. They ensure you meet obligations while building processes that make future compliance less burdensome. 

8. You Need to Professionalize for Growth 

Early-stage informality worked when you were smaller. Now you need proper financial controls, documented processes, and systems that scale. Investors, lenders, or potential acquirers expect professional financial management. 

A fractional CFO builds the infrastructure that supports your next growth phase. They implement controls, select appropriate software, and create processes that bring discipline without bureaucracy. 

Learn more about our Fractional CFO Services

Working With BPM for CFO Services 

Recognizing these signs is the first step. Taking action is what drives results. BPM’s fractional CFO services provide the strategic financial leadership your growing business needs without the commitment of a full-time hire. 

Our professionals bring decades of combined experience across industries and business stages. We integrate with your team, understand your unique challenges, and deliver practical solutions that move your business forward. To discuss how our fractional CFO services can help you navigate your next growth phase with confidence, contact us.