GAAP Compliance & Financial Integrity for a Global RPA Leader
How we audited, optimized, and restructured the Xero financials for ElectroNeek, ensuring 100% US GAAP compliance and audit-readiness for Q4 2024 & Q1 2025.
The Client Profile
ElectroNeek is a global player in the Robotic Process Automation (RPA) space, empowering Managed Service Providers (MSPs) with scalable automation tools. Operating in the high-growth SaaS sector means dealing with complex revenue recognition, multi-currency transactions, and the absolute necessity of audit-proof financials.
As the company scaled into 2025, they required a rigorous external review to ensure their books were not just "balanced," but structurally sound according to US GAAP standards.
The Operational Challenge
The client operated on Xero (Accrual Basis) but faced structural inconsistencies typical of fast-moving tech startups. They needed a deep-dive financial review for Q4 2024 and Q1 2025 to validate the integrity of their reporting.
1. Structural Inconsistencies
The Chart of Accounts (COA) had evolved organically rather than strategically. This led to misclassified expenses and inconsistent categorization across the Profit & Loss and Balance Sheet, making period-over-period analysis difficult.
2. The GAAP Gap
For a US-based tech entity, compliance with Generally Accepted Accounting Principles (GAAP) is non-negotiable. The client needed verification that their accruals, revenue recognition, and asset classifications met strict regulatory standards for tax filing and potential investor due diligence.
The NO-BS Intervention
We executed a "Financial Health Audit." This was a targeted, high-intensity review designed to identify risks, correct architectural errors in Xero, and deliver pristine financial statements within a 5-day turnaround.
Technical Execution & Strategy
Xero Architecture Review
We scrutinized the Chart of Accounts against SaaS industry standards.
- Audited account category usage across P&L, Balance Sheet, and Cash Flow reports.
- Identified structural redundancies and misclassifications (e.g., COGS vs. OpEx).
- Implemented reclassification logic to ensure clean gross margin reporting.
GAAP Compliance Audit
We drilled down into the transactional data for Q4 2024 and Q1 2025.
- Verified proper accrual accounting methods were applied consistently.
- Analyzed the Balance Sheet for "ghost assets" or uncleared suspense accounts.
- Ensured Cash Flow statements accurately reflected operating, investing, and financing activities.
Optimization & Reporting
We didn't just find problems; we delivered solutions.
We made direct corrections in Xero where permitted and provided a detailed "Findings & Recommendations" document. The final deliverable included clean, audit-ready versions of all three major financial statements, optimized for management use and tax filing.
The Results
ElectroNeek received a clean bill of financial health. Their records are now accurate, compliant with US GAAP, and structured to support their next phase of growth.
"Tallywise did a fantastic job helping me with a financial review and Xero cleanup. They corrected several technical issues in Xero, improved the accuracy of our financial statements, and made the system much more organized. Team was responsive, reliable, and always supportive throughout the process. I highly recommend working with them if you need expert help with Xero or financial reporting."