Tech company needs to overcome technical accounting challenges

Key results:

Overcame technical accounting challenges
Prepared annual financial statements and had them audited by Big 4 auditor
Issued statements one full calendar month than in the previous fiscal year

Value levers pulled:

Accounting policies & procedures
Financial statement preparation & analysis
Process & controls implementation

Picture this...

You’re a PE-backed provider of specialized software, SaaS, and professional services facing significant accounting challenges in the areas of revenue recognition, debt modification, hedging, stock-based compensation, and cost accounting. At the root of your problems are a number of things: a lack of technical competency, staff turnover within the controller’s office, and the absence of formalized accounting policies. You need accounting support and expertise to get you through.

You turn to Accordion.

We partner with your team to correct accounting errors; develop proper analyses, estimates, and calculations; formulate accounting policies, methodologies, and checklists; and develop your supportable position on these matters and defend it before Big Four auditors. Specifically, we focus on:

Deferred revenue: Analyze and categorize 7 components, netting A/R against deferred revenue to avoid balance sheet gross-up.
Revenue recognition: Develop corrected revenue waterfalls, adjusting quarterly revenues and balances.
Debt modification: Review documentation, perform 10% cash flow analysis, and propose accounting entries for refinancing.
Purchase accounting: Determine if costs are acquisition-related or period costs, proposing appropriate entries.
Hedges: Analyze hedge programs and separate time values for accounting.
Foreign currency translations: Analyze functional currencies and identify gains/losses for comprehensive income.
Goodwill & intangibles Impairment: Perform impairment tests and explain new guidance impacts.
Stock-based Compensation: Review award/option plans and prepare entries for each tranche.
Internal/External-use Software: Determine software classification and calculate capitalizable costs.

Your value is enhanced.

You successfully overcome technical accounting challenges—allowing you to correct accounting errors prior to your audit; achieve full compliance with the complex FASB regulations; improve visibility into revenue, long- and short-term debt, and working capital; and obtain a clean audit opinion. Ultimately, you’re able to successfully prepare your annual financial statements, have them audited by the Big Four auditor, and issue them before the deadline—one calendar month than in the previous fiscal year.

Enhanced value:

You reap multiple benefits, including:

Overcoming technical accounting challenges
Preparing annual financial statements and having them audited by Big 4 auditor
Issuing statements one full calendar month than in the previous fiscal year.