Frequently Asked Questions

Donovan CPAs Questions

Why should I choose Donovan CPAs?

We know you have plenty of other accounting firms to choose from, but we want you to choose us. Why? Because we do good work. And we want to be the ones who give you relief from all those accounting-related tasks and responsibilities – so you can do what you do best: grow your business and personal assets.

To us, the services we offer our clients are much more than just compliance. They represent carefully thought-out ways to make your life better. We want to know that whether you’re in our offices or out enjoying your life, our efforts help you achieve your financial goals … and help you sleep better at night.

Learn more about Donovan CPAs.

What services can you offer my business?

Our partnership puts you in command of your cash flow with tax planning, accounting, and a full suite of financial services designed to help your business achieve peak financial health. Check out our business-tailored services here.

How much does it cost to work with you?

That’s a great question! The work we perform is highly customized, so we provide detailed pricing information after your initial free appointment.

Who would I be working with?

Meet our dedicated Donovan team right here!

I would like to work at Donovan CPAs. Do you have any openings?

Working at Donovan CPAs means engaging in challenging and meaningful work that directly impacts the lives of our clients. We take pride in our firm-sponsored community involvement, giving back to the communities we serve. If you’re ready to join a dynamic team that values individuality, fosters personal growth, and makes a positive impact on clients’ lives, Donovan CPAs is the place for you. Check out our current job openings here!

Where are you located?

Indianapolis Office

9292 N Meridian Street, Suite 150
Indianapolis, IN 46260
317.844.8300
cpa@CPAdonovan.com

Avon Office

5151 E. U.S. HWY 36
Avon, IN 46123
317.745.6411
cpa@CPAdonovan.com

I need to pay my bill. Can I do that here on the website?

YES! You can pay your fee using Visa, MasterCard, Discover, or American Express, through our online payment system.

What if I have more questions?

We look forward to learning how we can help you achieve financial success. If you have any additional questions for us, please don’t hesitate to ask! Contact us here.

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Audit & Assurance Questions

Why do I need an audit for my business?

An audit ensures your financial statements are accurate and comply with regulatory standards. It also provides stakeholders with confidence in your financial health, such as lenders that provide capital to help fuel the growth of your business.

What is the difference between an audit, review, and compilation?

An audit provides the highest level of assurance with a detailed examination of financials. A review offers limited assurance through inquiry and analytics, while a compilation involves preparing financial statements without assurance.

How often should my business undergo an audit?

An annual audit is typically recommended to ensure ongoing financial accuracy and compliance, but the frequency may vary based on regulatory requirements and business needs.

What is the benefit of a review over a full audit?

A review provides limited assurance at a lower cost than a full audit, making it ideal for businesses that don’t require the extensive verification of an audit but still want some level of financial scrutiny. We can help determine which service makes sense for your long-term plans.

Bookkeeping & Accounting Questions

How can Donovan CPAs improve my business's operational efficiency?

We conduct operational efficiency reviews to identify and implement cost-saving and productivity-enhancing measures, streamlining your operations.

What is the difference between bookkeeping and accounting?

Bookkeeping involves recording daily transactions, while accounting uses this data to generate financial insights, reports, and strategies for decision-making.

What does forensic accounting involve?

Forensic accounting investigates and analyzes financial data to detect fraud, errors, or mismanagement, often used in legal cases.

Tax Planning & Preparation Questions

How can tax planning benefit my business?

Tax planning minimizes your business’s tax liability and enhances financial efficiency. It identifies deductions, credits, and strategies to optimize finances and ensure compliance with tax laws. Additionally, it prevents unexpected tax surprises and penalties by keeping you informed about regulatory changes and deadlines. This proactive approach improves cash flow management and reduces the risk of audits, saving money and supporting business growth.

When should I start tax planning for my business?

It’s best to engage in tax planning throughout the year to take advantage of opportunities and stay prepared for tax season, rather than waiting until the end of the year.

What’s the difference between tax planning and tax preparation?

Tax planning involves proactive strategies to minimize liabilities throughout the year, while tax preparation focuses on filing accurate returns based on that planning.

Why should I trust Donovan CPAs with my business taxes?

With decades of experience and a deep understanding of industry-specific tax needs, Donovan CPAs offer personalized solutions that help businesses optimize their tax strategies and avoid costly mistakes. Contact us to get started.

Business Consulting Questions

What does business consulting include?

Business consulting includes strategic advice on financial management, operational efficiency, and long-term planning to help businesses achieve their goals and optimize performance.

How can business consulting help my company grow?

Business consulting provides expert analysis and actionable strategies to improve processes, reduce costs, and identify new growth opportunities, helping your company scale efficiently.

Is business consulting tailored to my industry?

Absolutely! Our consulting services are customized to your industry’s unique challenges, ensuring that the strategies we offer are relevant and effective for your business.

How can forensic accounting help my business?

Forensic accounting investigates financial discrepancies or fraud, helping protect your business from financial loss and ensuring integrity in your financial reporting.

What does forensic accounting involve?

Forensic accounting investigates and analyzes financial data to detect fraud, errors, or mismanagement, often used in legal cases.

Why should I choose Donovan CPAs for business consulting?

Donovan CPAs offer personalized, industry-specific consulting services backed by decades of experience. We focus on your unique needs, providing practical solutions that make a real difference in your business’s success. Contact us to get started.

Business Valuation Questions

What factors are considered in a business valuation?

We assess financial performance, market conditions, assets, liabilities, and industry trends to determine a fair and accurate business valuation.

When should I consider getting a business valuation?

A valuation is beneficial when preparing for a sale, merger, succession planning, or securing funding, as well as for strategic decision-making.

How long does a business valuation take?

The duration depends on the business’s complexity and data availability but generally takes several weeks to ensure thorough analysis.

What types of business valuations does Donovan CPAs offer?

We offer valuations for mergers and acquisitions, succession planning, litigation support, tax planning, and financial reporting. Contact us to get started.

Fractional CFO Questions

What is a fractional CFO?

A fractional CFO is a part-time financial executive who provides strategic financial guidance, allowing you to benefit from high-level expertise on a flexible basis and a flexible cost.

How can a fractional CFO help my business grow?

A fractional CFO provides insights on financial strategy, cash flow management, budgeting, and forecasting, helping to optimize growth and profitability.

How often will I work with my fractional CFO?

The frequency of meetings is customized to your needs, whether weekly, bi-weekly, or monthly, to provide continuous support and guidance.

What’s the difference between a fractional CFO and a bookkeeper or accountant?

A fractional CFO focuses on high-level financial strategy, while bookkeepers and accountants manage daily transactions and compliance. Together, they ensure both financial health and strategic direction.

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Construction Questions

What are the tax considerations for construction businesses?

Construction businesses deal with unique tax rules, from managing job costs to handling long-term contracts. Choosing the right accounting method and maximizing deductions can make a big difference. We help construction companies stay compliant and lower their tax burden.

How can a CPA help with tax planning for a construction business?

We make tax planning simple. From structuring your business for tax efficiency to making sure you take advantage of every available deduction, we help you keep more of your hard-earned revenue.

Do construction businesses need to hire CPAs for compliance with government contracts?

If you’re working on government projects, strict financial reporting and compliance are required. A CPA ensures you’re meeting those requirements, so you stay eligible for future contracts.

What are some common financial challenges faced by construction companies?

Cash flow issues, fluctuating material costs, and job costing are just a few challenges. We help construction businesses manage these issues with smarter financial strategies.

How do CPAs assist with cash flow management in construction companies?

A CPA can help you predict cash flow needs, manage payables and receivables, and keep your projects financially on track—so you don’t run into surprises.

Education/Charter School Questions

When is the first audit due?

Your first audit is due on December 31 following the school’s first year of operation. For a school opened in the fall of 2024, your first audit is due December 31, 2025.

What forms are required for nonprofit schools in Indiana to file annually?

Every nonprofit organization in Indiana, including charter and innovation schools, must file an annual Form 990 with the Federal government and an NP-20 with the State of Indiana. This requirement begins even before your school’s first year of operations.

What happens if a school fails to file its tax returns?

Schools that fail to file their tax returns risk losing their 501(c)(3) nonprofit designation. In some cases, schools may realize this issue only after engaging a CPA firm, but by then, it might be too late. We’re here to help: Schedule an appointment!

Is there anything else schools need to file besides Form 990 and NP-20?

Yes, schools are subject to numerous reporting requirements including the filing of a property tax. It’s important to consult a Donovan team member about the best timing for this filing.

What are the common internal control findings from the State Board of Accounts that schools should be aware of?

Schools should ensure they are compliant with the following internal control procedures:

Proper receipt and deposit procedures, including timely deposit in the bank.
Proper voucher and payment approval procedures.
Accurate Form 9 reporting, including reconciliation from cash basis (for Form 9) to accrual basis (for financial reporting).
Correct timing of revenue recognition, particularly for federal cost-reimbursement grants.
Adequate documentation of enrollment and attendance to support semi-annual Average Daily Membership (ADM) reporting.

How can I ensure my school remains compliant with these regulations?

Review your school’s internal control processes regularly, and reach out to us at Donovan CPAs for professional advice on maintaining compliance. Schedule an appointment!

Manufacturing Questions

How can a CPA help me optimize my inventory management?

We help you balance inventory levels, cut waste, and streamline your costs—so you’re not sitting on excess inventory or vulnerable to shortages.

How do I handle tax deductions for manufacturing equipment and machinery?

Good news: there are tax breaks for that. Section 179 and bonus depreciation can help you save big on equipment purchases. We’ll make sure you’re maximizing these deductions.

What tax incentives or credits are available for manufacturing businesses?

From R&D credits to energy efficiency incentives, manufacturing businesses have a variety of tax-saving opportunities. We’ll help you find and claim the ones that apply to you.

How can I improve my cash flow in a manufacturing business?

We help manufacturers optimize pricing, payment terms, and inventory cycles to improve cash flow—so you can focus on growth, not just staying afloat.

How can a CPA help with strategic planning for growth?

A CPA gives you data-driven insights to make smart decisions. We help manufacturers plan for expansion, new product lines, and long-term profitability.

How can a CPA help me with cost control in the supply chain?

A strong supply chain is key to profitability. We analyze your costs, find inefficiencies, and suggest better ways to manage expenses—so you stay competitive.

Non-Profit Questions

How do we maintain our tax-exempt status?

Stay compliant by following IRS guidelines, keeping good records, and avoiding prohibited activities. We help non-profits maintain tax-exempt status hassle-free.

What financial statements do we need to prepare, and how do we comply with reporting requirements?

Non-profits need clear financial reporting to maintain transparency and compliance. We ensure your statements are accurate and meet all IRS and donor requirements.

How can a CPA help with fundraising and financial strategy?

We help non-profits build financial strategies that align with their fundraising goals—so you can maximize donor trust and impact.

What are the audit requirements for non-profit organizations?

Depending on your size and funding sources, you may need an audit or financial review. We provide audit services to ensure compliance and financial clarity.

What are the requirements for annual reports and donor transparency?

Annual reports should clearly show how funds are used. We help you create transparent, easy-to-understand reports that keep donors confident in your mission.

How do we track and report government or grant funding?

Grants come with strings attached—tracking and reporting are essential. We help you set up systems to manage and report grant funds properly.

Real Estate Questions

What tax credits are available for affordable housing projects?

Programs like the Low-Income Housing Tax Credit (LIHTC) offer substantial cost savings for affordable housing developers. We help you navigate these credits and the compliance period.

What are the reporting requirements for projects receiving LIHTC funding?

LIHTC projects require detailed financial reporting and compliance with state and federal rules. We’ll help you meet all the requirements.

What are the tax implications of grants and government funding for affordable housing?

Government funds can come with tax and compliance obligations. We help you understand how funding affects your tax situation and keep you in compliance.

How can a CPA help with real estate development projects?

From structuring deals to handling tax planning and financial projections, we help real estate developers make smarter financial decisions.