Financial Accounting
At SPC, our team guides businesses and ensure that our client’s financial statements not only meet US GAAP standards but also provide deeper financial insights, enhance compliance, which will prepare your organization for growth and investment opportunities.
Our Approach
Initial
Assessment
-
Key Task-
Identify differences between Cash Accounting and US GAAP. -
Considerations-
Understanding business processes, revenue recognition, expense matching.
Mapping
Accounts
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Key Task-
Align cash-based accounts with GAAP-compliant categories. -
Considerations-
Revenue recognition, accruals, deferred expenses.
Adjustments &
Reclassifications
-
Key Task-
Make necessary adjustments to convert cash-based entries to accrual-based. -
Considerations-
Inventory adjustments, prepayments, tax adjustments.
Final
Assessment
-
Key Task-
Prepare financial statements under US GAAP. -
Considerations-
Compliance with FASB standards, disclosure requirements.
What Our Financial Accounting Services Deliver
Revenue Recognition
Revenue Recognition
Expense Matching
Expense Matching
Accurals and Deferrals
Accurals and Deferrals
Compliance
Compliance
Our Solution to the Challenges
Revenue Recognition Timing
-
Challenge-
Differences in recognizing revenue under Cash accounting vs. US GAAP. -
Solution-
Implementing accrual accounting principles and developing custom revenue recognition schedules.
Expense Matching & Accruals
-
Challenge-
Matching expenses to revenues is crucial in US GAAP but often neglected in Cash accounting. -
Solution-
Introducing accrual accounting practices for accurate matching and creating accrual templates for ease.
Asset Capitalization & Expensing
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Challenge-
Properly identifying and categorizing expenses as capital assets versus operational expenses. -
Solution-
Detailed asset review and reclassification with a focus on capitalization thresholds.
Financial Statement Presentation
-
Challenge-
Transitioning from simple Cash-based reports to complex GAAP-compliant financial statements. -
Solution-
Development of comprehensive financial statements that meet US GAAP requirements, including footnotes and disclosures.
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