We specialize in several industries:

Homeowners Associations

Homeowners Associations are also called Common Interest Reality Associations. This occurs when a group of owners hold common property such as club houses or green areas as an association. These entities include Homeowners Associations, Townhome Associations, Condominiums, Timeshare Associations, and Business Parks.

Homeowners Associations have some very unique issues surrounding their operation and taxation. The industry has developed so that it requires a real specialty in this field of practice in order to keep up on all of the issues.

Preparation of Tax Returns

If they qualify to be exempt, homeowners associations are the only entity allowed under the tax code to choose the tax return they wish to file each year. Of the two choices, one is simple and less risky; the other can save significant taxes but can be fraught with perils. We can advise you on which filing is the most appropriate for your association.

Review of Financial Statements

California Code Section 1365.5 requires that any Common Interest Real Estate Association with revenues in excess of $75,000 must have their annual financial statements reviewed by a Certified Public Accountant. This review has certain requirements for procedures and disclosures. Fox & Stephens has done thousands of these reviews since 1990.

Audited Financial Statements

Many associations in their CC&R's require an annual audit of their financial statements. Others may desire one because of various reasons.

Not all CPA firms can perform audits of financial statements. Certain professional education must be maintained and a periodic review by our professional societies is required.  Fox & Stephens, CPA's has maintained its requirements to perform audits since the formation of the firm.  We pride ourselves on the quality and accuracy of our association audits.

Election Inspectors

California homeowner associations are required to conduct their elections in a specific manner using a third-party Election Inspector to oversee the process and count the votes.  We provide this service for numerous homeowners associations in Southern California.  Fox & Stephens, CPA’s will receive and register ballots cast onsite or mailed to our office, tally the vote and present the results at a meeting of the membership.

Construction Companies

Construction companies include developers, builders and special trade contractors. Since our inception, Fox & Stephens CPA's has worked with many in the construction field guiding them through the issues associated with long-term contracts.

Professional Service Companies

Professional service companies involve a wide range of entities including doctors, lawyers, architects, veterinarians, and many others. Although each industry is unique, they all share common issues concerning small business ownership, taxation, and accumulation of wealth.

Professional firms and other closely held business share many common attributes. They must bill and collect for their services, they must record and classify expenses, and their tax return liabilities must be considered in conjunction with their owner's tax liabilities. In other words, a 'Big Picture' analysis is often the best approach.

Nonprofit Entities

Nonprofit entities include charitable organizations organized under Section 501(c) (3) of the Internal Revenue Code, Membership Organizations, Social Clubs, and Business Leagues. These have their own specialized accounting and taxation issues.

Nonprofit Entities include charitable organizations, trade organizations, and other membership organizations. The IRS grants nonprofit status because they serve the public good. As such, the IRS is concerned that the organizations are operating in accordance with their exempt status, and are not really fronts for lobbying activities or other for-profit businesses.

This doesn't mean that a Nonprofit Entity can't make money from a side business. Under certain circumstances, it can. It then pays tax on that income, just like any other business. One has to carefully determine what income is taxable, and which is not. Also, the Nonprofit needs to be concerned that all appropriate expenses are charged against that income.

Exemption Application

In order to be granted tax exempt status, an organization must apply to both the IRS and the state. These applications are quite detailed and reviewed very carefully.  Fox & Stephens, CPA's can assist in preparing the exemption applications and help the organization avoid the pitfalls in the process.

Preparation of Tax Returns

The nonprofit tax return is often more detailed than that of a for profit entity.   Questions must be answered correctly to establish that the organization still qualifies for nonprofit treatment.

Review or Audit of Financial Statements

Many Nonprofits in their organizing documents require an annual audit of their financial statements. Others may desire one because of various reasons.

Not all CPA firms can perform audits of financial statements. Certain professional education must be maintained and a periodic review by our professional societies is required.  Fox & Stephens, CPA's has maintained its requirements to perform audits since the formation of the firm.

Accounting Standards are greatly different for Nonprofits from your average for profit business. Format, disclosures, and accounting policies are quite different.  Fox & Stephens, CPA's is well versed in these differences.