Our client’s need
As a growing software company, our client was eager to ensure they were positioned for future success. One component of that was ensuring they had a strong, consistent set of financial statements that could be used for capital allocation and P&L management. The client has a strong accounting team, but lacked experience with the technical aspects of generally accepted accounting principles (GAAP), such as revenue recognition, and historically has not prepared a GAAP financial statement.
Baker Tilly solution
We worked with our client to better understand their existing accounting treatments, policies, software development costs, and historical client records. Following our review of these materials, we made recommendations to adopt GAAP accounting methods and made adjustments to historical accounting records. Our consultative approach to audit readiness then allowed us to perform a review on their statement of operations and equity, as well as an audit of the balance sheet.
In the following year, we were able to perform a full financial statement audit. This consultative approach allowed our client to receive technical advice on the most complex matters without the upfront burden of an audit. They were able to adjust their record keeping, saving them time and professional fees. Ultimately, by preparing for and completing an audit, the company is now in a better position to demonstrate their financial position to customers, banks and investors.
For more information on this topic, or to learn how Baker Tilly software and technology industry specialists can help, contact our team.