Our client reached out to us because they had undertaken business activities during the previous year that were new to them. The client has a small accounting department that experiences bandwidth issues when dealing with additional or unusual transactions. They recognized that they needed additional guidance from a subject matter expert. We had previously worked with the client on other focused transactions, including the adoption of ASC 842.
The client needed specialized accounting assistance in several areas: support with the appropriate accounting for restructuring activities; revisions to their lease financing arrangements; issuance and accounting for convertible notes and warrants; and setting up a mechanism for shared services support with a new facility overseas.
We provided support to the internal accounting team by providing guidance on nonrecurring transactions, reviewing their work, providing documentation and support for conclusions reached and actions taken, and meeting with external auditors to discuss the guidance—resulting in no issues for the client with the annual audit of their financial statements. The client appreciates that we are willing to interact with their auditors to ensure there are no “surprises” and to free their internal team from having to conduct complex research to satisfy auditors. Because of our ability to work effectively and seamlessly with the client, we now have a master services agreement under which they can contact us on a regular basis to provide technical accounting support.