Technical Accounting Services
Once your company reaches the level of US GAAP financial reporting requirements, your accounting becomes significantly harder. Think highly complex and ever-evolving accounting guidance, alongside increased scrutiny by auditors or reviewers.
Let our team navigate the complexities of US GAAP so you don’t have to. Learn more about our services below, or check out our Zeroed-Insights for past articles on technical accounting matters.
Common Accounting Topics that we assist with
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Any time your business acquires a company, or is acquired, US GAAP requires specific accounting as of the acquisition date. This requires technical review of acquisition documents, what constitutes the purchase price, and a complex revaluation/allocation of the acquisition-date balance sheet that usually requires the support of a valuation specialist.
Our team can navigate the complex acquisition accounting guidance of ASC 805, determine what is included or excluded from the transaction, assist in preparing the opening balance sheet, and partner with your valuation firm. We will determine the right entries to start the accounting of your acquired business on the right path, and with supporting detail that will meet the needs of any audit/review.
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Beginning in 2022, all companies under US GAAP are required to adopt the new leasing standard of ASC 842. This new standard is a major change, and requires ALL leases to be recorded on your balance sheet, including operating leases that were previously excluded. The process of identifying and calculating the necessary balances for each lease in accordance with US GAAP can be taxing.
Our team will help you through every step of implementing the new leasing standard. Our services include technical review and calculation of all identified leases, developing a comprehensive accounting policy and related disclosures, and a search for any previously unidentified leases. All of these procedures are documented and supported through a package of deliverables generally expected by auditors.
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Within the past few years, all companies under US GAAP are now required to recognize revenue for all contracts with customers under the new comprehensive framework of ASC 606. This is a 5-Step Model for every contract that requires identification of performance obligations in a contract, measuring the amount of contract consideration, allocation over all performance obligations, and determining the correct method of revenue recognition.
Our experience from a wide range of industries and business models can help you easily navigate this complex accounting framework. Our team will work with you to understand your company’s revenue streams and contracts, perform technical review of a sample of contracts, evaluate for revenue recognition, calculate any necessary adjustments to your existing process, and document in an accounting policy often requested by auditors.
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Most early-stage companies need to be very creative with their funding strategies. A capitalization table often includes a mix of common stock, preferred stock, warrants, convertible or nonconvertible debt, and many other types of instruments. Under US GAAP, the accounting treatment for each of these can vary significantly based on certain features within an instrument, with highly complex underlying guidance.
Our team’s expertise includes a wide range of both equity and debt financing instruments, often with highly complex or unique terms. By reviewing your organizational documents and financing agreements, we can determine the correct accounting for each instrument, and document our evaluation in technical memos that are expected by auditors.
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Share-based instruments are a common form of compensation for many companies; it provides employees and advisors with strong incentives to grow the business. Common stock comp includes stock options, restricted stock, SAR’s, profit interests, and phantom equity. However, these instruments can be complex to account for under US GAAP, with major changes in accounting treatment based on certain terms and features.
Our team’s background with companies with a wide range of share-based compensation plans can help you reach the right answers on how to account for your stock comp awards. We can work with any existing systems you utilize, or manually calculate as needed, the related amounts required to be recognized as stock compensation expense, and document our technical evaluation in an accounting policy often requested by auditors.
Meet Your Expert Technical Accounting Consultants
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Kyle Geers
CEO/Co-Founder
Kyle Geers is a CPA based in Los Angeles with 10+ years of experience in public accounting, specializing in financial statement audits and accounting advisory. He is a graduate of the Goldman Sachs 10,000 Small Businesses accelerator program and a UCLA alum with extensive expertise in US GAAP and SEC Reporting. -
Matt Moschetti
Director
Matt Moschetti is a Nevada-based CPA with 10+ years of accounting experience that includes audits, technical accounting advisory, and corporate accounting roles. He holds a Bachelor’s degree in Business Administration with majors in Accounting and Information Systems from the University of Nevada, Reno.
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Danielle Lewis
Director
Danielle Lewis is a Nevada-based CPA with 10+ years of experience, specializing in US GAAP and regulatory standards like ASC 980. She holds advanced degrees in accounting and economics from the University of Nevada, Reno.
Frequently Asked Questions (FAQ)
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A technical accountant is considered a specialist in accounting frameworks like US GAAP and IFRS. Their primary role is to research complex guidance under these accounting standards, and interpret the guidance to properly account for a company’s specific operations and transactions.
In addition to the above, a technical accountant’s role includes discussion with key executives, such as the CFO, on the financial impact from the accounting treatment, and any necessary changes to existing processes or controls. They may also need to prepare supporting memorandums or workbooks and argue their position to auditors or other reviewers. A technical accountant may be a dedicated role within a larger company, part of the responsibilities of a Controller/CFO for small-to-medium businesses, or an outsourced advisor or specialist.
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Technical accounting is most applicable for companies that have financial reporting requirements under generally accepted accounting frameworks including US GAAP or IFRS. It requires the research and evaluation of those more complex accounting frameworks to properly account for a company’s operations and transactions and related financial reporting.
The technical accounting process includes the following:
Research of current/upcoming accounting guidance and requirements under complex accounting frameworks (e.g., US GAAP, IFRS)
Interpretation of the authoritative guidance, as well as industry practice (i.e., how other companies in the same industry evaluate the resulting accounting treatment)
Making necessary accounting adjustments, preparing supporting documentation such as memorandums or workbooks, and implementing any necessary changes to existing processes or controls
Preparing the company’s financial statements (and related footnotes) in compliance with the requirements under the framework.
If applicable, discussion with the company’s auditors or other reviewers on the accounting treatment and underlying interpretation of the guidance.
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Some of the most common technical accounting topics related to US GAAP include the following:
Revenue Recognition (under ASC 606)
Lease Accounting (under revised guidance of ASC 842)
Business Combination / Acquisition Accounting (under ASC 805)
Share-Based Compensation (under ASC 718)
Complex Equity Transactions
Debt Transactions, including debt modifications or extinguishment
Preparation of Financial Statements and related footnotes
In addition to the above, companies should be aware of any upcoming new or revised accounting standards, such as the recent new Current Expected Credit Loss (CECL) standard under ASC 326.
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Financial accounting can be considered as the accounting regularly performed within any business, and which results in periodic financial statements that are provided internally, such as to management or a board of directors.
Technical accounting refers to the more complex accounting that is required for companies under accounting frameworks such as US GAAP or IFRS. It requires additional research and evaluation to properly account for transactions in accordance with specific requirements under those accounting frameworks.
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A technical accounting manager requires specialized knowledge in specific accounting frameworks such as US GAAP and IFRS. Their primary role is to research complex guidance under these accounting standards, and interpret the guidance to properly account for a company’s specific operations and transactions.
In addition to the above, a technical accounting manager’s role includes discussion with upper management, such as a Technical Accounting Director, Controller, or CFO, on the financial impact from the accounting treatment, and any necessary changes to existing processes or controls. They may also need to prepare supporting memorandums or workbooks and argue their position to auditors or other reviewers. A technical accounting manager may be a dedicated role within a larger company, part of the responsibilities of a Controller/CFO for small-to-medium businesses, or an outsourced advisor or specialist.
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Hiring a technical accounting specialist provides expertise in navigating complex accounting standards and regulations, ensuring compliance and accuracy in financial reporting. They enhance the quality and reliability of financial statements, streamline audit processes, and support business transactions like mergers and acquisitions. Additionally, they help identify and mitigate financial risks, making them invaluable for maintaining robust and compliant financial operations.
Learn what meets the definition of “assets held for sale” under US GAAP, and the related accounting treatment.