Audit and Review Readiness
Assess whether your trial balance, reconciliations, schedules, contracts, controls, and prepared-by-client package are ready for external accountants.
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For owners, founders, and finance leaders
Revenue Recognition Policy Readiness
Assess whether your revenue is recognized on a consistent, documented policy that matches contracts and delivery, and what to prepare before an audit or financing review. (General readiness screen; not an ASC 606 technical conclusion.)
5 guided steps
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Official guidance links
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Your free guided checker
Answer a few quick questions below. It is private - nothing is submitted or stored - and takes about a minute.
Informational business diagnostic only; not accounting, audit, tax, legal, investment, lending, or valuation advice.
The questions this tool walks you through
Here is what the checker asks and why each step matters. Prefer to talk it through? Contact us and we will help directly.
Does a typical customer contract bundle more than one distinct good or service - for example software plus implementation, hardware plus a service plan, or a product sold with a warranty or support period?
When one price covers several distinct promises, that price has to be split across them - the single most common place small-company revenue goes wrong.
Identify each distinct promise and allocate the contract price across them.
Official guidance: FASB Accounting Standards Codification
Is a meaningful share of your revenue delivered continuously over time rather than at a single moment - subscriptions, retainers, memberships, hosting, or multi-month projects billed as work progresses?
Delivery that spans time is recognized as the customer receives it, so you need a defensible way to measure progress - not to wait for the final invoice.
Set an over-time measure of progress and recognize revenue as it is earned.
Official guidance: FASB Accounting Standards Codification
Do customers routinely pay, or are they invoiced, before you have delivered - deposits, prepaid plans, upfront annual fees, or milestone payments ahead of the work?
Cash in hand before delivery is not yet revenue; it is a liability you owe the customer until you perform, and recognizing it early is a classic overstatement.
Park advance payments in a contract liability and release them as you perform.
Official guidance: FASB Accounting Standards Codification
Within the next year or so, will an outside party examine your numbers closely - an audit or review, a bank or SBA loan, an equity investor or buyer running diligence, or a formal valuation?
The moment someone underwrites, invests in, or buys your business, revenue is the first line they test - and undocumented timing is where deals slow down or reprice.
Build an audit-ready revenue package before the review starts.
Official guidance: FASB Accounting Standards Codification
Is your revenue treatment written down as a policy - even one page - that a new bookkeeper or an outside accountant could follow to record sales the same way you do?
If the rules live only in your head, treatment drifts as staff and products change; a short written policy is what keeps recognition consistent and reviewable.
Keep the policy current and re-test it when new offerings launch. Write a short ASC 606 revenue policy that fits how you actually sell.
Official guidance: FASB Accounting Standards Codification
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