Fintech startup boosts investor confidence by solving complex accounting issues

Client background

The client that sought Baker Tilly’s guidance is a financial technology (fintech) startup that provides solutions to help individuals manage and improve their credit scores. Their services include credit monitoring, personalized recommendations for improving credit, debt management tools and educational resources to help customers better understand their credit profiles and financial health. By leveraging the latest financial technology available, they aim to simplify the process of credit management and empower users to make better, more informed financial decisions. 

The business challenge

The client was seeking to raise capital to cash flow their operations. To do so, they needed assistance with pulling together audited financial statements that would be compliant with generally accepted accounting principles (GAAP) and accurately portray their financial performance to investors. Because investors are well-versed in the intricacies of what is available in the marketplace, they expect to see complex financial statements ahead of entering into partnerships. Seeking to improve their credibility in the eyes of the investors, the client engaged the Baker Tilly fintech industry specialists for support in several key areas. 

Strategy and solution

With Baker Tilly’s care, the client implemented complex accounting, such as Current Expected Credit Loss (CECL), revenue recognition, share-based payments/equity accounting, research and development (R&D) tax credit accounting, income tax accounting and more. Beyond this, once Baker Tilly specialists got into the client’s systems, they realized that more complex systems would need to be established in order to report out to investors. Because of their extensive experience and industry knowledge, our specialists were able to pivot and provide services to the client beyond the traditional audit scope and what was originally expected.  

Clear communication, well-defined boundaries and technical experience ensured that Baker Tilly’s active role in the client’s financial transformation did not compromise the integrity of the audit process. The team was able to help the client establish a level of credibility that is invaluable in the eyes of investors. Ultimately, the result was the successful completion of a first-year audit and the delivery of GAAP-compliant financial statements that accurately portray the client’s financial performance to their investors.  

To learn more about how Baker Tilly’s specialists can assist fintech companies from early-stage to maturity.