Audit ready, in just a few clicks.
When it comes to yearly expense accounting and audit preparation, correctly expensing options and other equity rights can be a complex piece of the puzzle. From tranche vesting to interest rates, forfeitures, and determining the useful economic life of each asset, intangibles like equity rights can be notoriously difficult to attach value to.
Unfortunately, the consequences of getting stock compensation-based expense accounting wrong are dire. In addition to impacting your valuation, failing to properly account for equity compensation can cause a whole range of time-consuming headaches for your team. Here at Carta, this led us to ask a question:
Even if you’re skilled at accounting, why suffer through the time and headache of running these reports manually in Excel?
That’s why we’re proud to introduce our new and improved ASC 718 tool for stock compensation-based expense accounting. On Carta, you can do away with the rat’s nest of Excel spreadsheets, and do all the heavy lifting of report generation and journal entries in just a few clicks.
The tool can be used for multiple business structures and types of equity compensation, including corporate stock options and LLC-based rights such as profits interest units (PIUs), which are the most common form of LLC employee equity.
With a cap table that automatically updates with you around the clock, your options can now be priced directly inside Carta with a streamlined 409A valuation. From there, expenses are allocated and amortized automatically, so you can generate fully GAAP-compliant reports and journal entries in the snap of a finger.
To learn more about how Carta streamlines stock compensation-based expense reporting, click the button below.
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DISCLOSURE: This publication contains general information only and eShares, Inc. dba Carta, Inc. (“Carta”) is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services nor should it be used as a basis for any decision or action that may affect your business or interests. Before making any decision or taking any action that may affect your business or interests, you should consult a qualified professional advisor. This communication is not intended as a recommendation, offer or solicitation for the purchase or sale of any security. Carta does not assume any liability for reliance on the information provided herein.