SF C-Corp, 22 staff. Close time 2 days to 4 hours. ASC 606 implemented. Series A at $14M valuation supported with clean data room.
01The Situation
A 22-person C-Corp was closing books in 2 full days every month. Multi-year contracts were being recognized upfront instead of ratably, materially misrepresenting MRR. The finance manager dreaded the first week of every month for two years.
02What We Did
We mapped 34 manual close steps, eliminated 22 through automation, implemented ASC 606 with a deferred revenue schedule, and completed a $312K retrospective restatement. Close now runs in 4 hours. Series A closed at $14M 6 months later.
Breakdown
| Quarter | Gross Revenue | Recognized | Deferred Balance | Gross Margin | Status |
|---|---|---|---|---|---|
| Q1 2024 | $534K | $461K | $73K | 79.8% | |
| Q2 2024 | $588K | $508K | $91K | 80.2% | |
| Q3 2024 | $642K | $555K | $108K | 80.4% | |
| Q4 2024 | $702K | $607K | $124K | 80.6% |
The finance manager now spends the first week of every month on analysis and board prep, not reconciliation. The restatement improved how investors understood the business.
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