ESOP & Equity Accounting

Overview

What we deliver

We build ESOP schedules, expense models, and disclosures for stock options, RSUs, and ESPPs under ASC 718 and IFRS 2.

We help finance teams manage stock-based compensation accounting across stock options, RSUs, performance awards, and ESPPs. Our work covers grant accounting, vesting expense allocation, forfeiture estimates, and modification accounting under ASC 718 and IFRS 2. We build expense waterfalls, deferred tax schedules, and dilution analyses that tie to the cap table and payroll. We document valuation inputs for Black-Scholes, lattice, and Monte Carlo models and coordinate with valuation specialists where 409A or HMRC valuations are needed. We reconcile to Carta, Shareworks, or Pulley and produce footnote drafts for SEC, HMRC, CRA, or ATO filings. We support tax withholding flows, including IRS, HMRC, and CRA payroll integration for option exercises and RSU vests. We document policy and train HR, payroll, and accounting teams so each new grant cycle runs smoothly through the close.

Fit Check

Built for teams like yours

Who it's for

Pre-IPO and public companies
Venture-backed growth companies
Companies running new ESOPs
Finance teams managing global equity plans
HR and total rewards teams

Pain points we solve

Stock comp expense errors at close
Cap table and ledger out of sync
Missing forfeiture and modification tracking
Footnote disclosures that fail review
Payroll and tax withholding gaps on vests

What's included

Capabilities

Everything we cover in this engagement.

ASC 718 and IFRS 2 expense models
Grant, vest, and forfeiture tracking
Modification and repricing accounting
Deferred tax on equity awards
Dilution and EPS impact analysis
ESPP accounting
Cap table to GL reconciliation
Disclosure drafting

How we work

Our process

A clear, predictable path from kickoff to outcomes.

01

Inventory grants

Pull all active grants, vesting schedules, and plan documents.

02

Build model

Construct the expense waterfall and forfeiture assumptions.

03

Reconcile

Tie model to cap table system, payroll, and general ledger.

04

Disclose

Draft footnotes and management review packs.

05

Operationalize

Hand off templates and train HR, payroll, and accounting.

What you get

Deliverables & outcomes

What you get

Stock comp expense model
Forfeiture rate analysis
Cap table to GL reconciliation
Deferred tax schedule
Footnote disclosure drafts
Policy and runbook

Outcomes you can expect

Accurate stock comp expense each period
Reconciled cap table and ledger
Compliant ASC 718 and IFRS 2 disclosures
Cleaner payroll and tax flows on vests
Audit-ready workpapers

Timeline

4 to 8 weeks for build, ongoing close support

Engagement

Monthly retainer, Project, Sprint

Tools we use

Carta, Shareworks, Pulley, NetSuite, Excel

KPIs we track

Expense accuracy, cap table reconciliation variance, disclosure turnaround, audit adjustments, payroll tax timeliness

Client stories

What clients say

"

Our SDRs were spending two hours a day copying lead data between Salesforce, Outreach, and a Google Sheet nobody owned. They mapped the whole flow, stitched it together in n8n, and added a dedupe step we did not even know we needed. Got 38 hours a week back across the team. The SDRs were the ones who pushed to expand it further.

Rebecca F.

"

Two weeks before our seed round we still did not have a defensible model. Their fractional CFO rebuilt our three-statement forecast, pressure-tested the assumptions, and walked me through every line before the partner meeting. We closed 1.4M on the terms we wanted. The investor specifically called out how clean the financials looked compared to the last five decks she had seen.

Hannah B.

Proof