Close & reporting
US GAAP conversion
Books converted from ASPE to US GAAP for the Canadian subsidiaries, portfolio companies or growth-stage businesses that report up to a US parent, US investor or US lender, with every adjustment documented in a conversion memo the parent's own accountants can follow.
Management report
Illustrative client · August 2026
CAD
| Line | Aug | Jul | |
|---|---|---|---|
| Revenue | 142,380 | 131,904 | +10,476 |
| Cost of sales | (51,260) | (48,115) | (3,145) |
| Gross profit | 91,120 | 83,789 | +7,331 |
| Payroll | (46,300) | (45,900) | (400) |
| SoftwareNoted | (6,480) | (5,490) | (990) |
| Rent | (8,000) | (8,000) | 0 |
| Other operating | (9,215) | (9,870) | +655 |
| Net income | 21,125 | 14,529 | +6,596 |
Reviewer's note
Software is up on last month after two seats were added mid-month. Revenue includes one milestone invoice that will not repeat next month.
Illustrative. An example of the document, not a client's figures.
Why a Canadian company ends up needing US GAAP
Most Canadian private companies report under ASPE, which is built for owner-managed businesses and does not require it. A Canadian subsidiary of a US parent, a Canadian startup that raised from US venture investors, or a business preparing for a US-based acquirer, often has to report up on a US GAAP basis even though its own statutory books stay on ASPE or IFRS.
What the conversion covers
An opening balance sheet is built on a US GAAP accrual basis, with revenue, expense and balance sheet adjustments documented line by line. Accrual, deferral and reserve entries are recorded going forward on the US GAAP basis, and a conversion memo explains every adjustment made so a US parent's finance team or auditor can follow the trail without a phone call.
The areas that actually move
The gap between ASPE and US GAAP shows up hardest in revenue recognition and lease accounting: ASPE does not require the five-step revenue model or an on-balance-sheet lease model that US GAAP (ASC 606 and ASC 842) does. Those two areas get the most detailed adjustment schedules in a typical conversion.
Keeping both sets of books straight
Converting to US GAAP for a US parent does not mean giving up the ASPE or IFRS statutory books a Canadian entity still has to keep. We maintain both, clearly labelled, so nothing gets filed under the wrong standard by accident.
Questions
Frequently asked questions: US GAAP conversion
Why would a Canadian company need US GAAP books?
Usually because a US parent, a US-based venture investor or a US lender requires reporting on that basis, even though the Canadian entity's own statutory books stay on ASPE or IFRS.
Which areas move the most between ASPE and US GAAP?
Revenue recognition and lease accounting see the biggest adjustments, since ASPE does not require the five-step revenue model or the on-balance-sheet lease treatment that US GAAP does.
Do we still keep our Canadian statutory books?
Yes. The US GAAP conversion runs alongside your ASPE or IFRS statutory books, not instead of them, clearly labelled so nothing is filed under the wrong standard.
Do you sign off on the conversion as an auditor would?
No. We prepare the converted books and the supporting memo; any attest or audit work sits with a licensed accounting firm.
What exactly is included in uS GAAP conversion?
Opening balance sheet built on a US GAAP accrual basis, and revenue, expense and balance sheet adjustments documented line by line. This work runs inside QuickBooks Online or Xero, whichever your business already has in place, and it rolls into your regular monthly close rather than sitting off to the side as a separate, unreconciled process.
Why would a small business need US GAAP if cash basis is simpler?
A lender, an investor or an acquirer will often require accrual financials, and some specifically expect US GAAP before they will rely on the numbers.
Does converting to US GAAP mean giving up cash-basis reporting?
No. Many businesses keep a cash-basis view for tax purposes while their management books run on a US GAAP accrual basis.
How is uS GAAP conversion priced?
Pricing for uS GAAP conversion depends on your transaction volume, the software you use, and how much cleanup is needed before ongoing work starts. Current ranges are published on the pricing page, and your exact fee is confirmed in writing before anything begins.
What software works with uS GAAP conversion?
US GAAP conversion runs inside QuickBooks Online or Xero, whichever you already use. If you are not yet set up in either, we can configure a file in your name so you keep ownership of it once the engagement is under way.
Related services
- Close & reportingRevenue recognition (ASC 606 / IFRS 15)Revenue recorded when it is actually earned rather than when cash lands, following the five-step model shared by ASC 606 and IFRS 15, so recurring and multi-part contracts are accounted for correctly.
- Close & reportingLease accounting (ASC 842 / IFRS 16)Operating and finance leases brought onto the balance sheet as a right-of-use asset and a lease liability, in line with ASC 842 and IFRS 16, with monthly amortization tracked going forward.
Industries
Next step
Talk to the team that would run your books
A short call covers your setup, your software and what a first month would look like. You get a written scope and price after it.