Representative Engagements.

The Challenge

Enterprise multi-year contracts with bespoke SLA terms and hardware add-ons were being booked on invoicing rather than delivered performance obligations, stalling Series B investor due diligence.

Step1 Solution

Built contract-by-contract revenue recognition schedules under ASC 606, drafted the technical accounting memo for external auditors, and deployed a rolling 13-week cash model.

The Outcome

Passed Big 4 technical audit with zero restatements; Series B round closed on schedule with full board visibility.

The Challenge

Year-end accruals were being estimated top-down by the finance lead from prior-year balances, with no supporting schedules. Unbilled WIP, bonus provisions and subcontractor costs were all materially misstated, and the incoming auditors flagged cut-off as a key audit risk.

Step1 Solution

Rebuilt the accruals listing bottom-up from contracts, timesheets and post-period invoices; designed a standard accrual template with owner, basis and reversal date for every line; and performed subsequent-receipts and cut-off testing on both sides of year-end before fieldwork began.

The Outcome

Identified and corrected £620k of over- and under-accruals before the audit started; year-end file passed first-year audit with no cut-off adjustments and a standing monthly accruals process now owned by the client’s own team.

The Challenge

Three years of option grants, a growth-share scheme and an investor warrant had never been valued or expensed. Grants carried mixed vesting conditions — time-based, performance milestones and exit-linked — and the board needed audit-ready numbers ahead of a US investor’s diligence.

Step1 Solution

Built a grant-by-grant register; determined fair value at each grant date using Black-Scholes and Monte Carlo models for the market-condition awards; separated service, performance and market conditions for recognition; and drafted the technical memo covering valuation inputs, modifications and the deferred tax position.

The Outcome

Cumulative share-based payment charge of £2.1M booked and reconciled to the cap table; valuation memo accepted by the auditors without challenge, and investor diligence closed with no accounting findings.

The Challenge

Group accounts were consolidated in spreadsheets with manual eliminations. Intercompany balances disagreed by £1.8M across entities, translation reserves had not been reconciled for two years, and a 60%-owned joint venture was being fully consolidated with no non-controlling interest.

Step1 Solution

Re-performed the consolidation from entity trial balances; agreed and eliminated every intercompany balance and transaction with a matched confirmation pack; recalculated FX translation under IAS 21 and rebuilt the CTA reserve; and corrected the JV treatment with NCI measured at acquisition.

The Outcome

Consolidation tied out to the penny across all entities; £1.8M of intercompany differences resolved and the restated translation reserve agreed by the auditors; group now closes consolidated accounts within 12 business days using a controlled elimination template.