A technology company gains control of its financial reporting process

BerryDunn’s Commercial Practice Group partners with clients to provide insights that inform effective growth strategies, help them assess and manage risk, and optimize return strategies for better profitability.

Our team of technology finance experts helped a technology company gain control of its financial reporting processes, increasing efficiencies and making year-end closing faster. 

Challenge

A technology company was experiencing significant delays in completing their year-end close and issuance of audited financial statements. The company’s contracts with their customers were complex, including multiple performance obligations. They had also issued equity instruments in the form of stock options and restricted stock awards for which US GAAP required compensation expense to be recorded. The company did not have a good understanding of how to account for these more complex items and was working with a larger audit firm that was not providing the guidance the company needed.

Solution

BerryDunn took over the role as the company’s audit firm and worked to address their challenges in a way that provided the company with the direction they needed without impairing independence. Our team coached the company’s finance team through making the key determinations needed to develop a revenue recognition policy that was compliant with US GAAP, and also provided guidance on recording stock-based compensation using the data their valuation reports provided.

Outcomes

With BerryDunn’s support, the company successfully implemented our recommendations, resulting in:

• Better understanding and ownership of their own accounting policies
• A smooth and efficient audit process with BerryDunn as the auditors
• Vastly improved turnaround time for issuance of audited financial statements
• Opportunities for more collaborative planning discussions and forward thinking

Learn more about how BerryDunn helps technology clients build actionable strategies for short- and long-term success, or contact a member of our team with any questions.