Who does what
What’s Automated. What a Person Owns.
Written back · August
“Implementation fees are recognised over the contract, not when billed.”
Written up once, and applied to every new contract since.
✦ Automated
✦
Every agreed position remembered as a rule
✦
Each close checked against the rules in force, so a change that breaks one is caught
A licensed CPA owns
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Working out the position and writing the memo
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The schedules behind it: vesting, amortisation, deferred revenue
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Questions from an auditor or an investor’s accountant
What we cover
Where Startups Most Often Get It Wrong
01
Revenue recognition (ASC 606): annual prepayments, multi-part contracts, usage pricing, implementation fees
02
SAFEs, convertible notes and warrants (ASC 480 / 815): classification, and what happens at conversion
03
Stock-based compensation (ASC 718): grants, vesting schedules and the expense each period
04
Leases (ASC 842): office and equipment leases on the balance sheet
05
Capitalised software (ASC 350-40): which development costs to capitalise, and when amortisation starts
06
Acquisitions (ASC 805): purchase price allocation and what comes after
07
Foreign currency and intercompany (ASC 830): balances in two currencies, tied out on both sides
What you get
01
A position memo
The facts, the guidance that applies, the conclusion and the entries, written so an auditor or an investor’s accountant can follow it.
02
The entries booked
The position goes into the books with the schedules behind it: vesting, amortisation, deferred revenue.
03
The same answer every close
Once a position is agreed, every close applies it. Nobody works it out again.
FAQ
Questions
When do I need technical accounting?
What do I get?
Our last accountant already set up the treatment. Can you take it over?