The following are important accounting considerations to prepare for going public:
- Establish transition contracts for services and products that will be needed once public, such as independent audits of financial statements, and investor relations services.
- Identify any sensitive accounting issues:
- Resolve any GAAP inconsistencies.
- Review cheap stock considerations.
- Review key operating metrics.
- Internal controls and “SOX” compliance.
- Take the time to needed to ensure your audited financial statements are in great shape.
- You will only need two full years of audited financial statements in your SEC filings if you qualify as an “emerging growth company,” although many technology companies still elect to include three years.
- In addition to the IPO process, the timing of your SEC filings may be impacted by when you release your quarterly interim financial statements.
- Many technology companies continue to provide at least eight historical quarters of financial information to help analysts and investors build their models in spite of the FAST Act’s allowances.