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Is Your Cosmetology School Ready for a Title IV Audit?
Get Expert Title IV Audit Services Designed to Keep Cosmetology Schools Compliant and Worry-Free
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Frequently Asked Questions
Find answers to common inquiries about our services.
How do your services specifically help cosmetology schools prepare for Title IV financial audits?
Our services provide comprehensive audit readiness support, including pre-audit assessments, meticulous documentation organization, liaison with external auditors, and development of corrective action plans. We ensure your school's financial records and practices meet NACCAS and Department of Education standards, minimizing audit risks and ensuring compliance.
What is the 90/10 Rule, and how do you assist proprietary schools with compliance?
The 90/10 Rule is a federal regulation for proprietary schools, limiting the percentage of revenue derived from Title IV funds. We help schools accurately calculate and monitor their 90/10 ratio, develop strategies to diversify revenue streams, and ensure precise reporting to maintain compliance and safeguard federal funding eligibility.
Can you explain the Composite Score, and how do you help schools improve it?
The Composite Score is a Department of Education metric assessing a school's financial responsibility. We analyze your financial statements to calculate your score, interpret its implications, and develop actionable strategies to improve key financial ratios. Our proactive planning helps strengthen your financial position for continued Title IV participation.
When should we start preparing for our Title IV financial audit?
Ideally, you should be preparing all 12 months of the year. However, if that's not the case, begin 90–120 days before year-end. Start by cleaning up the books, convert to GAAP accrual, reconcile student ledgers/unearned tuition, build audit schedules (PBC list), and set timelines so your audited statements are filed on time.
Can you work with our current bookkeeper, auditor, and software?
Absolutely. We collaborate with your auditor, support your bookkeeper, and work in QuickBooks Online plus common school systems (e.g., tuition/attendance platforms). We act as your audit liaison to keep requests moving.
How do your QuickBooks Online setup services benefit cosmetology schools and beauty professionals?
We offer specialized QuickBooks Online setup services (Done With You and Done For You) tailored for the beauty industry. We ensure your QBO is configured for accurate financial tracking, NACCAS/DOE accreditation readiness, and efficient management of industry-specific revenue and expenses.
What makes your accounting services unique for beauty industry professionals and schools?
Our unique advantage stems from our direct experience within the beauty industry. This firsthand understanding allows us to go beyond standard accounting, providing insights into managing commissions, product inventory, specialized deductions, and revenue recognition specific to salons, spas, and independent stylists. We bridge the gap between financial expertise and industry-specific nuances.
Do you offer ongoing financial support or tax planning beyond initial setup or audit readiness?
Yes, we provide comprehensive ongoing financial support and proactive tax planning. This includes year-round tax strategy to minimize liabilities, assistance with state filings, reasonable compensation analysis, and robust IRS audit support. For beauty professionals, we also offer guidance on managing estimated taxes and maximizing industry-specific deductions to ensure continuous financial health.
We were told we need a financial statement compilation. Do you provide that?
Yes. For states that require compiled GAAP financials (but not an audit), we prepare CPA compilations with the statements and notes needed for licensing/renewal and accreditation filings.
How do we get started and what does it cost?
We'll start with a short consult and document review. We’ll price a fixed-fee audit-prep package or a monthly fee, which ever works best for your situation. You’ll get a clear scope, timeline, and deliverables before we begin.