Early revenue feels like proof that your go-to-market works, but chasing revenue alone can be misleading. There's a critical difference between growing bigger and scaling smarter. 

Growth without profitability isn't sustainable. So how do you prove your business can truly scale? The answer isn't revenue. It's gross margin.

On the surface, the company looked strong. Burn was under control. Revenue was climbing. The management team had landed strong debt financing that gave them the capital needed for continued growth. Cash balances gave the finance lead confidence that they were in good shape as they entered their first $10M+ loan with an institutional lender.

Then the audit requirement kicked in.

Tech companies face unique audit challenges, including revenue recognition (ASC 606), stock-based compensation, and capitalized software development costs. Navigating complex equity structures and staying updated on GAAP guidelines ensures compliance and strengthens investor confidence. By addressing these key areas, tech companies can streamline audits and demonstrate robust financial integrity.

Tech companies face unique audit challenges, including revenue recognition (ASC 606), stock-based compensation, and capitalized software development costs. Navigating complex equity structures and staying updated on GAAP guidelines ensures compliance and strengthens investor confidence. By addressing these key areas, tech companies can streamline audits and demonstrate robust financial integrity.

Tech companies face unique audit challenges, including revenue recognition (ASC 606), stock-based compensation, and capitalized software development costs. Navigating complex equity structures and staying updated on GAAP guidelines ensures compliance and strengthens investor confidence. By addressing these key areas, tech companies can streamline audits and demonstrate robust financial integrity.

Understand the purpose behind interim testing performed by auditors, and how you can use it to avoid costly audit overruns at year-end.