Close & reporting
US GAAP conversion
Finbryn converts a US business's books from cash basis onto US GAAP accrual accounting, building an opening balance sheet, documenting every revenue, expense and balance sheet adjustment, and recording accruals and deferrals going forward, with a conversion memo a lender or investor can follow.
Management report
Illustrative client · August 2026
USD
| 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 cash basis stops being enough
Many US small businesses start on cash basis because it is simple and matches intuition: money in, money out. That works fine until a bank wants accrual financials for a loan covenant, an investor asks for GAAP-compliant statements before a raise, or the business itself needs to know what it actually earned in a period rather than what happened to hit the bank account.
What the conversion involves
We build an opening balance sheet on an accrual basis, which usually means recognizing accounts receivable and payable that cash-basis books never tracked, adding prepaid and accrued items, and adjusting fixed assets onto a depreciation schedule if they were previously expensed outright. Every adjustment gets documented in a conversion memo, so anyone reviewing the change later, including your own tax preparer or a future auditor, can see what moved and why.
Two of the areas that need the most care
Revenue recognition under ASC 606 and lease accounting under ASC 842 are usually the two areas that shift the most when moving from cash to accrual, particularly for businesses with multi-period contracts or leased space and equipment. We cover both as part of a full conversion where they apply.
Keeping a cash-basis view where you need one
Converting your management books to accrual does not force a change to how your tax return is filed. Most US small businesses keep filing on a cash or hybrid basis for tax purposes while running accrual books internally, and we keep both views reconciled to each other.
Related conversions
A business reporting to a parent or investor outside the US may need IFRS conversion in addition to or instead of US GAAP, and any business with multiple entities after a conversion will likely need consolidation work on top.
Questions
Frequently asked questions: US GAAP conversion
How long does a US GAAP conversion take?
It depends on how far back the opening balance sheet needs to go and how complex the revenue and lease arrangements are, and we scope a timeline once we review the books involved.
Will converting to US GAAP change what I owe in taxes?
Not by itself. The conversion changes your management books; any change to your tax filing basis is a separate decision made with your tax preparer.
Do you sign off on the converted financials the way an auditor would?
No. We prepare the converted books and the supporting conversion memo. Any attest or review work is separate and sits with a qualified audit firm, not with our preparation team.
What does uS GAAP conversion actually include, month to month?
US GAAP conversion covers opening balance sheet built on a US GAAP accrual basis, along with revenue, expense and balance sheet adjustments documented line by line. The work runs inside QuickBooks Online, Xero, NetSuite, Sage Intacct or Google Sheets, the file stays under your own subscription, and a senior principal reviews the output before it reaches you each period.
What access do you need to start uS GAAP conversion?
View or edit access to QuickBooks Online, Xero, NetSuite, Sage Intacct or Google Sheets is enough to begin; nothing about your existing subscription or login changes on our side. Any additional access needed for a specific deliverable, such as a bank portal or receipt inbox, is agreed with you first, and the scope is set out in your engagement letter.
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
- Startups and VC-backed companiesBookkeeping and reporting for early-stage, venture-backed companies watching burn, runway and investor reporting closely.
- SaaSBookkeeping and reporting for subscription software businesses tracking recurring revenue, deferred revenue and burn.
- ManufacturingBookkeeping for small and mid-size manufacturers tracking raw materials, work in process and finished goods inventory.
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.