Service
GAAP Alignment & Audit Support
Convert cash-basis books to accrual and GAAP, and walk into an audit prepared, with the schedules, support, and narratives your auditors will ask for.
Whether you are raising capital, meeting a new lender or investor requirement, or facing a first-time audit, your financials need to be on the right basis and fully supportable. This work converts cash-basis books to accrual and GAAP and prepares the company, and its documentation, for the review that follows.
What this work involves
- Converting cash-basis accounting to accrual to align financials with United States generally accepted accounting principles (GAAP).
- Building the supporting schedules and reconciliations that stand behind the financial statements.
- Preparing the prepared-by-client (PBC) list and assembling the requested support ahead of fieldwork.
- Drafting the narratives and memos that explain accounting positions to the auditors.
- Establishing audit-ready documentation that holds up year over year, not just once.
When you need it
GAAP alignment and audit preparation typically come up when a company raises institutional capital, takes on a new lender, prepares for a sale, or simply reaches the point where a first audit is required. In each case, the company benefits from getting its basis of accounting and its documentation in order well before the auditors arrive.
How I work
I assess the current basis of accounting and the state of supporting records, convert and align the financials to GAAP, build the schedules and narratives, and prepare the team for fieldwork so the audit runs smoothly. The goal is a clean, well-documented set of financials and a process the team can sustain.
This is preparation and support, not the audit itself. The firm does not provide audit, attestation, or assurance services, and works alongside your independent auditors rather than in place of them.
Common questions
What is cash to accrual conversion?
Cash-basis accounting records transactions when money changes hands. Accrual accounting, which GAAP requires, records revenue when it is earned and expenses when they are incurred. Conversion restates the books onto the accrual basis so the financials reflect true performance and position.
Do you perform the audit?
No. This is preparation and support. The firm does not provide audit, attestation, or assurance services. The work gets your financials and documentation ready and supports you through the process, while an independent auditor performs the audit itself.
What is a PBC list?
PBC stands for prepared by client. It is the list of schedules, documents, and support the auditors request from you. Assembling it in advance, organized and reconciled, is one of the most effective ways to keep an audit on schedule.
When should we prepare for our first audit?
Ideally well before the audit is required. Starting a few months ahead gives time to convert the basis of accounting, build supporting schedules, and resolve open questions calmly rather than during fieldwork.