Technical Accounting For Next-Gen Automobile Advertising Solution
Firefly is the next-gen car advertising solution, encompassing taxi and rideshare top advertising, in-car advertising, holograms, car wraps, and more. Their mission is propelled by advanced tracking, measurement, and optimization capabilities, making them a data-first ad network.
See how Zeroed-In Consulting helped the Firefly team face a daunting challenge: upgrading their books to meet rigorous US GAAP standards amidst escalating work volumes.
Background/Issue
Firefly required multiple fiscal years of audited financial statements under US GAAP, as a new requirement from its recent round of funding. While its accounting was on an accrual basis, it was not evaluated under more complex US GAAP standards. The Client was growing rapidly, and the lean accounting team (Controller and 2 staff accountants) was already spread thin handling the additional volume. There was no time for upgrading the books to pass a financial statement audit.
Audit Readiness
Zeroed-In kicked off the project through review of the existing books and discussions with Management to identify high-risk audit areas such as revenue recognition, complex debt/equity, and acquisitions.
A comprehensive game plan was developed by Zeroed-In, in collaboration with the Client’s team. This included key tasks, requests, and an estimated timeline to completion for each workstream.
Recurring weekly calls between ZI and the Client were scheduled to discuss status and any open items or questions. The ZI team also quickly communicated any requests as their work progressed.
Deliverables included detailed memos and workbooks, with ZI walking Management through the files and impact of each item before being provided to the auditors. As a result, the most complex audit areas were navigated with minimal back-and-forth, and the audit was successfully completed.
Outsourced Acounting
Post-audit, Zeroed-In continued to assist the Client in developing processes in order to maintain the company’s accounting records in compliance with US GAAP.
Shortly after the audit, the Controller left the company. After an unsuccessful initial search, the Client engaged ZI in an interim Controller role while it continued its search for the right full-time hire.
Zeroed-In even assisted Management in Controller interviews, identifying key expertise and knowledge required for an effective hire.
As a result, Zeroed-In maintained high-quality recordkeeping for the Client and even introduced best practices and efficiencies. Even when a full-time Controller was hired, the Client has continued to engage ZI as an advisory partner to supplement the Controller’s responsibilities and assist with special projects during the company’s continued rapid growth.
Key Benefits
Reduced audit hours for the Client’s team, and reduced audit overruns by avoiding necessary back-and- forth on complex accounting topics.
Agile and high-quality accounting evaluation and deliverables, with highly technical/complex accounting matters explained to Management in a concise, easy-to-understand format.
High-quality coverage of an accounting leadership role in the interim, and specialized interview/selection assistance, resulting in lowered anxiety and more time for an effective full-time Controller hire.
Continued partnership with a skilled and agile accounting expert for ongoing complex matters and special accounting/finance projects.
“I appreciate their willingness to roll their sleeves up on difficult tasks, both within our accounting department and on other areas within the organization as well. They continue to provide high-quality work while staying transparent on budget and fees, which gives me peace of mind.”
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MARK LINDSEY, EX-CAO OF FIREFLY AND EVP OF CINEDIGM
