GAAP Compliance Services – XoraH PLLC

GAAP Compliance Services

Intro to Services

Financial statements prepared in conformity with generally accepted accounting principles are not just a regulatory requirement — they are the foundation of trust with auditors, lenders, investors, and acquirers. When GAAP compliance breaks down, the consequences range from audit adjustments and delayed financial statements to restatements, damaged creditor relationships, and failed transactions. For companies that lack deep technical accounting expertise in-house, maintaining consistent GAAP compliance across all areas of financial reporting is genuinely difficult.

Our GAAP compliance services help businesses identify where their accounting practices fall short of GAAP requirements, correct errors before they become audit findings, and establish the accounting policies and practices needed to maintain compliance going forward. We work with private companies and PE-backed businesses throughout Florida and nationwide, bringing senior CPA-level judgment to compliance challenges of all types and complexity.

Common GAAP Compliance Gaps We Encounter

Through our work with middle market businesses, we consistently see certain categories of GAAP compliance gaps. Understanding where problems most commonly arise helps companies prioritize their compliance efforts:

• Revenue recognition — applying the ASC 606 five-step model incorrectly or inconsistently across contract types
• Lease accounting — failing to properly identify and recognize operating and finance leases under ASC 842
• Business combination accounting — incomplete or inaccurate purchase price allocations under ASC 805
• Debt classification — classifying long-term debt as non-current when covenant violations or subjective acceleration clauses require current presentation
• Equity instrument accounting — misclassifying preferred equity, warrants, or convertible instruments as equity when they should be classified as liabilities under ASC 480
• Capitalization policies — improperly capitalizing costs that should be expensed, or expensing costs that should be capitalized
• Impairment — failing to test or document goodwill and long-lived asset impairment as required
• Disclosure deficiencies — presenting financial statements without the disclosures required by GAAP, even when the underlying accounting is correct

Our GAAP Compliance Services

GAAP Compliance Assessment

We conduct a structured assessment of your current accounting practices against US GAAP requirements — reviewing your accounting policies, financial statement presentation, and significant accounting judgments to identify areas of non-compliance or elevated audit risk. The output is a prioritized findings report that distinguishes material compliance gaps from lower-risk issues and provides a clear remediation roadmap.

Accounting Error Identification and Correction

When a GAAP error is identified — whether through internal review, an auditor comment, or a transaction due diligence process — the first step is understanding the nature and magnitude of the error. We assess the error, apply the appropriate materiality framework, determine whether a restatement is required or whether the error can be corrected prospectively, and prepare the correcting entries and required disclosures.

Pre-Audit GAAP Review

The most cost-effective time to find and fix GAAP compliance issues is before the audit begins. We conduct pre-audit GAAP reviews for companies preparing for an initial audit, a recurring annual audit, or an auditor transition — identifying issues that are likely to attract auditor attention and correcting them before the audit fieldwork starts. Pre-audit preparation consistently reduces audit fees, audit delays, and the friction of contested audit adjustments.

Financial Statement Presentation and Disclosure Review

GAAP compliance is not limited to the accounting entries — it extends to the presentation and disclosure requirements of each applicable standard. We review financial statement presentation for compliance with ASC 205 and other presentation standards, and assess the completeness and accuracy of footnote disclosures against the requirements of each applicable standard. Disclosure deficiencies are among the most common audit findings and one of the most straightforward areas to remediate with the right expertise.

Ongoing GAAP Compliance Support

For companies that lack a technical accounting resource in-house, we provide ongoing GAAP compliance support on a retainer or as-needed basis — answering accounting questions as they arise, reviewing significant transactions before they are recorded, and providing a check on the accounting team’s work before financial statements are finalized. This model gives management the confidence of CPA-level oversight without the cost of a full-time hire.

GAAP Compliance in the Context of Transactions

GAAP compliance takes on heightened importance when a business is involved in a transaction. Whether a company is raising debt or equity, acquiring a business, or preparing for a sale, counterparties and their advisors will scrutinize the financial statements for compliance gaps. A clean set of GAAP-compliant financials accelerates the transaction process, supports a higher valuation, and reduces the risk of price adjustments or deal failure. We help companies get their financial statements transaction-ready by identifying and remediating compliance issues before they surface in due diligence.