How Consultants Help Implement Technical Accounting Standards

Establishing a strong financial foundation is critical to scaling operations and gaining investor trust – but keeping up with evolving technical accounting standards such as ASC 606 (Revenue Recognition) and ASC 842 (Leases) can quickly overwhelm founders and finance teams.

However, hiring an external consultant can provide your startup or emerging growth company with the expertise, processes, and tools needed to stay compliant, avoid risks, and focus on business growth.

As experts in helping organizations implement technical accounting standards swiftly and effectively, we’ve outlined how consultants help startups implement technical accounting standards with confidence.

How Consultants Help Startups and Emerging Growth Companies Implement Technical Accounting Standards

1. Consultants help startups navigating complex technical accounting standards with expertise
2. Consultants develop tailored accounting frameworks for growth
3. Consultants assist with automation and technology integration
4. Consultants help startups minimize risk and prepare for an audit
5. Consultants provide scalable support for future reporting needs

1. Consultants help startups navigating complex technical accounting standards with expertise

Technical accounting standards are intricate, and compliance requires a deep understanding of their requirements. Consultants bring specialized knowledge and real-world experience to break down these complexities, ensuring that startups and emerging growth companies implement the right practices from day one.

For example, for ASC 606, consultants help startups determine the correct revenue recognition methodology, whether it’s over time or at a point in time, based on the nature of contracts. This prevents revenue misstatements and keeps investors confident in financial reports.

2. Consultants develop tailored accounting frameworks for growth

Startups and emerging growth companies often face unique challenges, such as irregular cash flow patterns or unconventional business models. Consultants design custom accounting frameworks aligned with the startup’s goals and current operations, ensuring the business remains agile as it scales.

For example, when implementing ASC 842, consultants identify the lease agreements applicable to the new standard and design tracking mechanisms that fit the startup or emerging growth company’s existing accounting infrastructure. This saves time while maintaining accuracy across lease reporting.

3. Consultants assist with automation and technology integration

Modern accounting software can streamline compliance, but these systems require careful configuration to ensure standards are applied correctly. Consultants assist startups and emerging growth companies in choosing, configuring, and integrating accounting tools, ensuring seamless technical compliance.

For example, for revenue recognition automation, consultants may recommend software solutions that align with the ASC 606 reporting needs, allowing startups and emerging growth companies to forecast more accurately and reduce manual errors.

4. Consultants help startups minimize risk and prepare for an audit

Non-compliance with technical accounting standards can result in reputational damage, fines, or failed audits. Consultants proactively address these risks, ensuring startups and emerging growth companies meet reporting deadlines and stay audit ready.

For example, ahead of an audit, consultants can run a “mock audit” to spot any compliance gaps, providing startups and emerging growth companies with the chance to resolve issues before auditors arrive.

5. Consultants provide scalable support for future reporting needs

As startups and emerging growth companies grow, their financial reporting requirements evolve. Consultants provide ongoing support to ensure startups and growth-stage organizations can seamlessly adopt new standards or adjust practices when needed. This helps avoid future disruptions and ensures compliance keeps pace with growth.

For example, when new accounting updates are introduced (such as changes to lease reporting or revenue recognition) consultants guide company finance teams in implementing updates with minimal impact on operations.

Final Thoughts on How Consultants Help Implement Technical Accounting Standards for Startups

For startups and emerging growth companies, implementing technical accounting helps build trust with investors, supports strategic decision-making, and lays the groundwork for sustainable growth.

Consultants play a vital role in this journey, offering tailored strategies, technology solutions, and ongoing support to ensure startups meet both current and future financial reporting demands.

With the right consulting support, startups and emerging growth companies can focus less on navigating accounting regulations and more on scaling their vision and reaching key growth milestones.

Need help navigating technical accounting standards? Reach out to our expert consultants today — let us take the complexity out of compliance so you can focus on growing your business.