Ensuring Your Accounting Systems Remain Compliant

As companies scale, the complexity of their accounting systems tends to increase dramatically. Without the right structure and oversight, even small, unseen gaps in compliance can proliferate, leading to audit failures, stalled deals, and strategic blind spots.

A strong accounting system will maintain your compliance through rapid growth and all types of restructuring activity. It can also create the kind of visibility you’ll need to make more confident decisions as the company expands. But what does that mean in practice?

Key Features of Compliant Accounting Systems

First, make sure your process covers all core areas of accounting system compliance. This includes:

• GAAP and revenue recognition standards (including ASC 606): You’ll need accuracy around revenue, contract modifications, and performance obligations to ensure your financials reflect the reality of your company’s cash flow. Fast-growth companies often struggle here as products and price models evolve quickly.
• Internal controls and audit trail integrity: Segregation of duties, approval workflows, and consistent reconciliations are foundational to preventing fraud. These internal controls often need restructuring as the company grows and its financial practices evolve.
• Tax compliance and reporting: You’ll also need consistent accuracy around sales tax, payroll tax, and state nexus rules to avoid costly missteps and fines.
• System integration and data security: Disconnected platforms increase the risk of inconsistencies in data, which can harm efficiency and compliance. Strive for a unified system with secure access and clean integrations for improved efficiency.

How To Keep Your Accounting Systems Compliant

Strong compliance also means building proactive processes. Here are some tips to designing a more proactive accounting system for improved compliance through M&A, due diligence, and day-to-day growth.

Complete Regular Compliance Reviews

First, set up internal reviews and periodic audits to review your compliance status on an ongoing basis. Try to identify workflow gaps and outdated configurations. You may also need to look deeper into your processes during restructuring phases, when due diligence standards increase.

Automate High-Risk Accounting Functions

Next, automate functions where possible to reduce manual errors and provide more real-time visibility into accounts. Doing so will accelerate your reconciliation process and help to enforce internal controls more consistently. This will be critical for strategic financial management moving forward, as the pace of regulatory change accelerates.

Standardize Policies and Documents

It’s also important to create consistent documentation for approvals, reporting, audit workflows, and reconciliations. Each review should follow the same format to support your long-term strategic financial management plans. When every document has its own quirks, it takes employees longer to work through them, which means less time for higher-level tasks.

Train Your Team on Evolving Standards

Finally, make sure to train your team as compliance standards evolve. Education around GAAP, ASC 606, internal controls, and tax rules will be critical. You may need to schedule periodic refresher courses to keep employees up to date with emerging changes.

How Fractional Financial Leadership Supports Compliance

Maintaining accounting compliance can feel like a full-time job. That’s why many companies choose to outsource the function to an experienced fractional CFO. They’re available on-demand to help organizations:

• Strengthen internal controls and documentation
• Implement compliance-ready workflows
• Prepare audit-ready financial records
• Develop long-term compliance strategies that will scale

CFO Hub is here to help you find the right fractional financial leadership for your compliance goals. Whether you’re hoping to develop strategies that scale, prepare for an M&A, or adjust to emerging standards in your industry, our affordable expertise is standing by. 

So, why wait? Contact CFO Hub today to learn how we can help.