CALIFORNIA NON-PUBLIC AGENCIES
Built for California Non-Public Agencies certified by CDE to deliver special-education services — speech, OT, PT, ABA, counseling, mental health — to school districts. The district contract cycle, the AB 5 exposure, and the CDE annual review on one desk.
THE REALITY OF AN NPA
NPAs look like clinical practices on the surface and run like education-services contractors underneath. Six places that hybrid breaks generic accounting.
Districts pay on 60-90 day cycles. Service hours stop in June and resume in August. Cash flow that looks healthy in April becomes a credit-line draw by July if it isn't modeled as deferred revenue with a summer carry plan.
NPA rate cards mix per-hour direct service, per-session IEP attendance, per-student annual caps, and travel-time stipends. Generic books lump it all as "revenue" — losing the per-contract margin visibility owners need.
1099 SLP, OT, and BCBA contractors rarely survive AB 5's ABC test when the NPA is the entity delivering the contracted service. Most NPAs pre-2020 still carry historical exposure. EDD audits in this space are unforgiving.
CDE certification requires annual renewal with financial review, liability-insurance proof, and demonstrated solvency. Books that work for cash-basis tax often don't pass CDE scrutiny — you need GAAP-aware financials.
Mandatory pre-service costs per clinician (LiveScan, TB clearance, mandated reporter training, BCBA supervision hours) are recurring and deductible — but only if categorized correctly and tracked per employee.
Districts contract NPAs to fulfill IDEA-mandated IEP services. Compensatory hours, ESY (extended school year), and make-up sessions create revenue patterns generic CPAs don't model — and miss billable hours owed.
WHAT WE DO
Accounting, tax, and advisory — integrated for NPA owners delivering school-contract services.
Monthly close that reflects how an NPA actually earns and spends — per district, per service line, per clinician.
Federal + CA returns plus year-round planning that uses the structure of an NPA practice.
Owner-level guidance for compliance, growth, and the transitions every NPA owner faces.
What you can expect
You work with a CPA, not an associate.
Scoped upfront and committed in writing.
Response within one business day.
Quarterly planning — not just at deadlines.
What we do
We work with California Non-Public Agencies on the financial side of running a district-contracted clinical practice — multi-district revenue, summer cash gaps, AB 5, and CDE reporting.
Per-district revenue tracking, billing cadence, and AR aging across every contract you hold.
Operating budgets and reserves planning for the June–August funding gap that catches most NPAs off guard.
Clinician and aide classification under California AB 5 — reducing audit exposure and back-pay risk.
Audit-ready records and reporting formatted for CDE certification and re-certification reviews.
Rate analysis and reconciliation against contract billing, service hours, and IEP obligations.
Bookkeeping, payroll oversight, monthly P&L with district-level detail, and year-end tax coordination.
Related services
PT, OT, and Speech therapy practices — many NPAs run a parallel clinic operation.
Explore →How we work with California healthcare practitioners across specialties.
Explore →Year-round tax planning for owner-operators — entity, comp, and reserves.
Explore →Related insights
NPA
California NPAs face unique tax exposure: AB 5 contractor reclassification, deferred revenue on district contracts, and a brutal summer cash gap. A CPA-led play
PT · OT · SLP
California PT, OT, and SLP practices face Medicare’s 8-minute rule, AB 5 contractor exposure, and teletherapy nexus. The tax moves owners actually need.
Home Health
California home health agencies face PDGM billing complexity, AB 5 nurse classification exposure, surety bond amortization, and Medicare cost report requirement
Common Questions
It depends on the service mix and licensing structure of the owners. NPAs delivering services that require professional licenses (SLP, OT, PT, MFT, LCSW) where the entity itself is the practitioner often need a Professional Corporation in California. Service mixes that include BCBA, paraprofessional, or non-licensed services can use LLC. S-corp election is layered on top once compensation hits the breakeven.
We model district contracts as deferred revenue so income is recognized in the period the service is delivered. That gives you accurate monthly margin and lets you build a summer reserve from peak months. We also help structure a working-capital line so summer payroll isn't a stressor.
For most NPAs the ABC test does not support 1099 status for SLPs, OTs, BCBAs, or other licensed clinicians delivering the contracted school service. The business-to-business exception is narrower than people think. We reclassify cleanly, model the cost impact, and coordinate with employment counsel on any historical exposure.
Yes. We prepare GAAP-aware financials and the supporting schedules CDE expects — solvency, insurance, payroll, related-party transactions. Most NPAs find their existing books need rebuilding the first time around; after that we maintain them at review standard year-round.
These are billable revenue under the contract — but only if tracked. We help build a workflow that captures owed sessions per IEP, separates ESY from regular school year, and turns make-up obligations into the revenue they actually represent.
Typically 30-60 days from engagement letter. We pull your prior three years of returns and contracts, reconcile per-district AR, restate deferred revenue, and set the entity structure before the first full close.
An Invitation
A complimentary 30-minute review. We look at your NPA specifically — service lines, district contracts, staffing, certification — and tell you honestly what we'd do.
Call directly: 925-320-0309 · ronak@milestonecpas.com
