Demonstrate IPO Financial Readiness with Filings and Key Documentation

First, be sure to begin the audit process well in advance of your desired filing date. Companies often underestimate the time required to complete an audit, especially if they have never been audited before. You may need two or three years of audited financial statements depending on your size, so plan to assess this early on.  

Next, make sure your financial statements meet Securities & Exchange Commission (“SEC”) reporting requirements. If you already have audited financial statements, you may need to adjust them to meet SEC requirements and have your auditor re-issue their opinion under Public Company Accounting Oversight Board(“PCAOB”) auditing standards.  

Evaluate new financial reporting policies and disclosures. Financial reporting areas that may require incremental disclosure or changes to account balances include segment reporting, accounting for goodwill, earnings per share, additional disaggregated revenue disclosures, and expanded tax disclosures.  

Lastly, prepare interim financial statements is critical in this process. SEC rules require that you include interim financial statements when your filing is expected to occur a significant amount of time after your annual year-end. You may need to include financial statements for three, six, or nine-month periods and the comparative prior year periods, and all periods will need to be reviewed by your auditors. Plan ahead by creating prior year interim financial statements as soon as possible and interim closing procedures to help achieve timely completion of the current year interim financial statements.  

By understanding and addressing these key areas, you can confidently prepare your company through a successful transaction. For more information and expert guidance, contact us today!