How Hotel Management Companies Can Win in 2025 with Outsourced Accounting

Djoanne Garcia

Djoanne Garcia

Senior Manager

How Hotel Management Companies Can Win in 2025 with Outsourced Accounting
Modern hotel operations have never been more demanding. Managing multiple revenue streams—from OTAs and direct bookings to group sales and ancillary services—requires specialized knowledge and robust internal controls. The challenge is compounded by industry- specific accounting standards like the Uniform System of Accounts for the Lodging Industry (USALI), making financial oversight a complex and resource-intensive task.

Seasonality adds another layer of complication. When revenue is not constant, due to changes in occupancy levels, you need accurate forecasting and flexible staffing. During slower times hotel management has to focus closely on cost management, while large transaction volumes in peak season can put strain on internal accounting teams. Data integrity and compliance are also critical concerns. Hotels must maintain accurate financial records and stay compliant with man industry-specific tax regulations, labor laws, and data privacy requirements. Mistakes or inaccuracies can lead to audits, fines, and missed opportunities.

In this blog, we’ll explore how outsourced accounting can reduce these burdens and give hotel management companies with the financial clarity and efficiency needed to thrive in 2025. With insights from real-world customer stories, we’ll examine how outsourcing can transform financial operations, improve decision-making, and help position your hotel management business for long-term success.

Understanding the Challenges of Hotel Management Accounting

Managing hotel finances is no small task and without the right expertise and systems in place, hotel management companies run the risk of bottlenecks, compliance problems, and missed growth opportunities. Here’s a closer look at some of the biggest financial challenges hotels face:

  • Multiple Revenue Streams: Hotels generate revenue from a variety of sources, OTAs, direct bookings, corporate group deals, event spaces, restaurants, and spas. Each revenue stream has its own reporting requirements under the industry’s accounting standards, such as the Uniform System of Accounts for the Lodging Industry (USALI). Without the right expertise, proper classification of revenues can quickly become overwhelming.
    Partnering with corporate finance advisory services helps hotel operators manage these complexities, make sense of financial reporting structures, and maintain accuracy and compliance with industry standards.
  • Seasonal Occupancy Variations: Hotel occupancy and revenue are anything but steady. Internal teams often struggle to effectively manage the workload spikes and slow periods, and hotel management companies need
  • Cash Flow and Expense Management: Managing operational costs like payroll, utilities, maintenance, and unexpected expenses when there’s a lot of seasonal variation in revenue takes expert planning. Each hotel needs to have enough cash to sustain operations, meet any emergencies, and carry out capital improvements throughout the year.
  • Data Integrity and Accuracy: Inconsistent data, reconciliation errors, and reporting mistakes can lead to audits, regulatory scrutiny, or costly penalties. With multiple departments feeding data into financial systems, there are plenty of opportunities for mistakes to creep in.
  • Regulatory Compliance: Hotel operators must comply with occupancy taxes, labor laws, and data privacy requirements. Failing to meet regulatory standards can result in hefty penalties and reputational damage.
  • Technology Gaps: Modern hotel management relies on seamless integration between accounting systems, property management software (PMS), and point-of-sale (POS) systems. However, hotels often use outdated tools or disjointed systems that create bottlenecks and generate inaccurate reports. Without real-time financial insights, decision-making becomes reactive rather than strategic.

The Need for a Smarter Approach

With so many moving parts, the accounting and financial management of hotels needs the right combination of specialist expertise, flexibility, and technology. Many hotel management companies are turning to outsourced accounting for help. In the next section, we’ll explore how outsourcing can help your firm overcome these financial management challenges.

The Case for Outsourced Accounting

Managing a hotel’s financial operations is complex. You need deep industry expertise, advanced technology, and a scalable approach that can work across multiple properties. Let’s take a look at some of the ways outsourcing your accounting functions can help streamline operations, cut costs, and improve strategic decision-making:
  • Multiple Revenue Streams: Hotels generate revenue from a variety of sources, OTAs, direct bookings, corporate group deals, event spaces, restaurants, and spas. Each revenue stream has its own reporting requirements under the industry’s accounting standards, such as the  Uniform System of Accounts for the Lodging Industry (USALI). Without the right expertise, proper classification of revenues can quickly become overwhelming.
  • Seasonal Occupancy Variations: Hotel occupancy and revenue are anything but steady. Internal teams often struggle to effectively manage the workload spikes and slow periods, and hotel management companies need
  • Cash Flow and Expense Management: Managing operational costs like payroll, utilities, maintenance, and unexpected expenses when there’s a lot of seasonal variation in revenue takes expert planning. Each hotel needs to have enough cash to sustain operations, meet any emergencies, and carry out capital improvements throughout the year.
  • Data Integrity and Accuracy: Inconsistent data, reconciliation errors, and reporting mistakes can lead to audits, regulatory scrutiny, or costly penalties. With multiple departments feeding data into financial systems, there are plenty of opportunities for mistakes to creep in.
  • Regulatory Compliance: Hotel operators must comply with occupancy taxes, labor laws, and data privacy requirements. Failing to meet regulatory standards can result in hefty penalties and reputational damage.
  • Technology Gaps: Modern hotel management relies on seamless integration between accounting systems, property management software (PMS), and point-of-sale (POS) systems. However, hotels often use outdated tools or disjointed systems that create bottlenecks and generate inaccurate reports. Without real-time financial insights, decision-making becomes reactive rather than strategic.

Outsourcing hotel accounting isn't just a cost-saving move—it's a strategic decision that gives your company access to qualified accounting professionals who have a thorough understanding of the hospitality industry. You no longer have to worry about recruitment, turnover, and staff shortages—outsourcing providers ensure that any changes to the team are handled smoothly and consistently. Partnering with an outsourced team boosts efficiency, enhances compliance, and helps unlock valuable data insights for sustainable growth.

How to Move Forward with Outsourced Accounting for Your Hotel Management Company

If your hotel management company is considering outsourcing accounting functions, taking a strategic approach is essential. Here are some key considerations when selecting an outsourced accounting provider:
1. Define Your NeedsStart by assessing your current financial operations and identifying the challenges you want toaddress:

  • Current Resources: Do you have an in-house accounting team, are you looking to supplement existing staff? What systems and resources do you have in place, and where do you feel there are opportunities to improve?
  • Scope of Services: Are you seeking help with transactional tasks like accounts payable, receivables, and reconciliations, or do you need a more strategic partner to assist with financial planning, forecasting, and compliance?

Outsourced accounting services can range from basic bookkeeping to CFO-level strategy. Understanding where your needs fall on this spectrum will help you find the right provider.
2. Evaluate the Service ProviderSelecting an outsourced accounting partner is similar to hiring an in-house team member. You'll want to ensure they have the right expertise, capabilities, and approach to fit your business. Key factors to consider include:
  • Experience in Hospitality Accounting: Look for a provider with a proven track record in the hotel industry. They should understand hospitality industry regulations and have experience dealing with, seasonal cash flow fluctuations and multi-property financial operations.
  • Services Offered: Depending on your needs, outsourced accounting providers can offer anything from bookkeeping and transactional work through financial compliance and reporting to CFO-level strategic guidance. Make sure your potential partner has the skills and experience to meet the current needs of your business.
  • Technology & Integration: Modern accounting relies on cloud-based platforms, automation, and seamless integration with property management systems. Ensure your provider has experience in the systems that you use.
  • Communication & Reporting: The provider should offer clear, timely financial reports and be responsive to your team’s needs. They should be able to explain financial data in a way that supports better decision-making.
  • Data Security & Compliance: Given the sensitive nature of financial and guest data, choose a provider with strong security measures, encryption protocols, and compliance with regulatory standards.
  • Scalability & Flexibility: Hospitality is a dynamic industry with seasonal fluctuations. Your accounting partner should offer scalable solutions that adjust to peak and off-peak periods or support expansion into new properties.

3. Consider Cost & Pricing StructureWhile cost savings are a key benefit of outsourcing, pricing structures vary widely. When evaluating potential providers:
  • Request detailed pricing information (hourly rate, fixed retainer, or per-service fees).
  • Ensure transparency—watch for hidden costs related to software, implementation, or additional services.
  • Compare multiple providers to find the best balance of expertise, technology, and cost- effectiveness.

4. Request References & ReviewsFinally, research the provider's reputation by:
  • Asking for references from hotel management companies they've worked with.
  • Checking online reviews and testimonials.
  • Inquiring about case studies or examples of how they've helped similar businesses optimize financial operations.

Case Study: Sightline HospitalityHotel management company Sightline Hospitality's journey exemplifies the transformative power of outsourced accounting. Sightline grappled with time-consuming manual processes and inaccurate financial reporting, leading to delayed reporting and increased error risks. Facing rising staffing costs and inconsistent personnel, they sought a solution that would enable strategic focus and cost reduction. By partnering with Scrubbed:
  • Overhead Costs Dropped: Outsourcing helped reduce staffing-related expenses significantly.
  • Scrubbed streamlined key processes (accounts payable, receivables, reconciliations), boosting efficiency, and reducing errors
  • Capabilities Enhanced: High-caliber accounting professionals improved financial reporting and operational efficiency. The partnership also provided Sightline with access to specialized hotel accounting expertise.
  • Strategic Growth Realized: Freed from resource-intensive processes, Sightline focused on expanding its project portfolio and driving long-term business success.

Through its collaboration with Scrubbed, Sightline Hospitality has successfully tackled staffing challenges, optimized operational efficiency, and maintained a sharp focus on its core competencies. The strategic decision to outsource accounting services to Scrubbed has alleviated financial burdens and enabled Sightline to pursue its vision of delivering exceptional performance in every hotel it manages. As they expand, the partnership with Scrubbed remains vital to Sightline’s growth strategy and ongoing success in the hospitality industry.

Read the full Sightline Hospitality Case Study

Conclusion

Winning in 2025 is about more than just managing costs—it’s about embracing opportunities to build a smarter and more resilient approach to financial management. Outsourced accounting provides hotel management companies with the tools to improve efficiency, enhance decision- making, and stay focused on delivering exceptional guest experiences. As Sightline Hospitality has demonstrated, the right outsourced accounting partner can be a game-changer. Are you ready to unlock your potential and thrive in the year ahead?

How Scrubbed Can Help

Our team of experts understands the unpredictable nature of the hospitality industry and can provide the financial insight and support you need to succeed. Whether you are managing a single hotel or building a portfolio of properties, we can offer a complete suite of accounting, technical accounting support, finance, real estate accounting solutions, and tax services to help you streamline your processes and increase operational efficiencies. By partnering with Scrubbed, hotel management companies can benefit from the flexibility, scalability, and cost-effectiveness of outsourcing and focus on the core business.

REACH OUT FOR A CONVERSATION
How Scrubbed Can Help

Related Content

Blogs

Mitigating Risk in a Tight Market: The Compliance Advantage of Outsourced Accounting for Multifamily Properties

Mitigating Risk in a Tight Market: The Compliance Advantage of Outsourced Accounting for Multifamily Properties

The multifamily sector is facing major regulatory changes. From new HUD rules and FASB/GAAP updates to growing investor scrutiny around sustainability impacts and risks, regulatory requirements are becoming harder to navigate. At the same time, tighter margins and a tough lending environment are putting more pressure on financial operations.In response, many multifamily firms are turning to outsourced accounting partners to help streamline compliance processes, strengthen reporting, and improve cost control. Outsourcing is a strategic approach to building resilience and staying competitive in a more demanding market.Why compliance is getting harderEvolving regulations are nothing new for multifamily property managers, but right now, they’re happening on multiple fronts, including HUD changes and ongoing updates to FASB/ GAAP rules. On the ESG front, reporting expectations are no longer optional. Investors and lenders expect property owners to track, disclose, and back up their environmental risk management, social impact, and governance practices with solid data.Missing a deadline or misinterpreting a rule can lead to lost funding, investor lawsuits, or serious damage to a company’s reputation. With tighter margins and capital harder to access, the risks are higher than ever for multifamily businesses.Keeping up with all the regulatory changes and ensuring that financial operations and reports are accurate and compliant takes a skilled accounting team with in-depth knowledge, integrated systems, and the ability to produce accurate data on short timelines. And the truth is that many in-house teams are stretched thin and simply don’t have the capacity to do it all.Where outsourced accounting fits inFor many in the multifamily sector, the answer is to partner with an outsourced accounting team.Outsourcing has long been an option, of course, the growing number and complexity of HUD regulations, FASB updates, and sustainability impact and risks management requirements makes expert support and advice more valuable than ever. The evolving regulatory landscape demands specialized knowledge that can be difficult to develop and retain in-house.For operators also navigating digital finance platforms, access to SaaS accounting expertise through outsourced teams can further streamline compliance and reporting efforts.Because outsourced teams have experience across diverse portfolios and different regulatory environments, they bring a valuable perspective to multifamily businesses. That perspective can help operators maintain audit readiness, adapt financial workflows to new requirements, and reduce the risk of compliance issues. In a period of ongoing change, outsourced accounting is a practical tool for managing risk and improving data quality.Several factors are driving the shift toward outsourced accounting:Real estate-specific expertise: Teams specializing in multifamily property accounting bring a solid working knowledge of HUD standards, FASB and GAAP updates, and emerging ESG frameworks that can be difficult to maintain internally.Audit-ready processes: The experience of outsourced accounting teams in implementing and maintaining standardized workflows, automated reconciliations, and centralized reporting systems helps multifamily operators build stronger internal controls. In turn, this makes it easier to prepare for audits, respond to investor reviews, and meet regulatory inspection requirements more efficiently.Scalability: Outsourcing provides more operational flexibility to onboard new properties, respond to seasonal leasing cycles, or cover shifting reporting requirements.Cost control: Replacing fixed back-office overhead with a variable-cost model gives firms more breathing room. Outsourced accounting providers will often handle staffing, training, and software maintenance, lowering the cost of finance and accounting functions.How Sustainability Risk Management is accelerating the trendMultifamily operators are facing rising demands for transparency, including stricter requirements for managing sustainability impacts and risks. As institutional investors and lenders place greater weight on ESG performance, operators need to improve their ability to identify and manage sustainability impact and risks. Doing so can help multifamily businesses avoid unnecessary costs, reduce compliance risks, and strengthen the overall health of the company.Tracking environmental, social, and governance data alongside traditional financial information is an effective way to support this approach, but the additional pressure may stretch the capacity of an in-house accounting team. Bringing on an outsourced accounting team with expertise in sustainability impact and risk management and access to ESG reporting services allows multifamily businesses to stay ahead of investor and regulatory demands while maintaining the focus on core operations.Looking forwardManaging compliance, risk, and reporting demands aren’t getting any easier, but partnering with the right outsourced accounting partner could be the key to helping you stay ahead. Multifamily property companies that take proactive steps to reinforce their financial and compliance approaches will be better equipped to handle audits, meet investor expectations, and adapt to evolving standards.

Read More >
Blogs

360° Approach to Libor Transition

360° Approach to Libor Transition

What you need to know:London Interbank Offered Rate (LIBOR) ends on December 31, 2021.ASU 2020-04 – Reference Rate Reform (Topic 848) provides temporary optional expedients and exceptions to the US GAAP guidance on contract modifications and hedge accounting. The ASU is effective immediately and all entities would be able to apply it until December 31, 2022.Cessation of LIBOR would expose businesses to various risks such as liquidity risk, technology risk, operational risk, and financial reporting and compliance risk.The U.S. Treasury Department and Internal Revenue Service (IRS) released the Proposed Interbank Offered Rate (IBOR) Regulations in October 2019 to address the tax treatment of alterations made to instruments to replace an IBOR-based rate with an alternative rate.LIBOR is currently produced in 7 tenors (overnight/spot next, one week, one month, two months, three months, six months, and 12 months) across 5 currencies. In the US and global markets, LIBOR is widely used as a reference interest rate in commercial agreements and a broad range of financial instruments. However, in 2017, the U.K. Financial Conduct Authority announced that all currency and term variants of LIBOR (IBORs) are expected to cease after the end of 2021. This decision was made due to the increasing absence of active underlying markets and the scarcity of term unsecured deposit transactions which led to serious questions about the future sustainability of the LIBOR benchmarks.FASB proposed optional expedients and exceptions to the guidance in U.S. GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform.In March 2020, the Financial accounting Standards Board (FASB) released ASU No. 2020-04 in response to the cessation of the LIBOR. Several issues and challenges that are likely to arise due to this were raised by stakeholders:Voluminous contracts and other arrangements will need to be modified to replace reference rates.Application of existing accounting standards to contracts and other arrangements could be costly and burdensome. The inability to apply hedge accounting because of reference rate reform could result in financial reporting outcomes that do not reflect entities’ intended hedging strategies. Key Considerations Include:Affected ContractOptional Expedients and ExceptionsCriteria Contract Modifications —Allows an entity to account for and present the modified contract as a continuation of the contract that existed before the modification rather than a derecognition or extinguishment—The contract references LIBOR or another reference interest rate that is expected to be discontinued due to reference rate reform.—Consider embedded features to be clearly and closely related to the host contract without reassessment.—Any contemporaneous changes to other contract terms (i.e., those that do not directly replace or have the potential to replace a reference rate) that change, or have the potential to change, the amount and timing of contractual cash flows must be related to the replacement of the reference rate.  Hedging AccountingeCritical terms of hedging relationships—Provide optional expedients to enable entities to change critical terms and continue to apply hedge accountingFair value hedges—Allows an entity to change the designated benchmark interest rate documented at hedge inception to a different eligible benchmark interest rate under Subtopic 815-20—An entity may disregard certain qualifying conditions for the shortcut method that are not met because of reference rate reform and may continue to disregard those qualifying conditions for the remainder of the fair value hedging relationship (including for the remainder of hedging relationships that end after December 31, 2022).Cash flow hedges—Allows an entity to assert that it remains probable that the hedged forecasted transaction will occur.—Continue hedge accounting upon a change in the hedged risk as long as the hedge is still highly effective—Allows an entity may revert to hedge accounting requirements in Subtopics 815-20 and 815-30 without de-designating the hedging relationshipCritical terms of hedging relationships —Perform some effectiveness assessments in ways that disregard certain potential sources of ineffectiveness.Fair value hedges—The hedge is expected to remain highly effective—The optional expedients for fair value hedging relationships may be elected on an individual hedging relationship basisCash flow hedges—An entity may continue hedge accounting for a cash flow hedge for which the hedged interest rate risk changes if either the hedge is highly effective under an assessment method in Subtopics 815-20 and 815-30 or an optional expedient method in this Update is elected.—An entity should disregard the potential change in the designated hedged interest rate risk that may occur because of reference rate reform when the entity assesses whether the hedged forecasted transaction is probable in accordance with the requirements of Topic 815. Debt securities classified as Held-to maturity —An entity may make a one-time election to sell, transfer, or both sell and transfer debt securities classified as held to maturity that reference a rate affected by reference rate reform and that are classified as held to maturity before January 1, 2020. Contract modifications:  The following decision tree summarizes whether a contract modification is eligible to apply for the optional relief in ASC 848-20-55-1. ASU No. 2020-04 also provides optional expedients for applying the requirements of certain topics that require analysis of contract modification:Modifications of contracts within the scope of Topics 310, Receivables and Topic 470, Debt should be accounted for by prospectively adjusting the effective interest rate Modifications of contracts within the scope of Topics 840, Leases and Topic 842, Leases should be accounted for as a continuation of the existing contracts with no reassessments of the lease classification and the discount rate (for example, the incremental borrowing rate) or remeasurements of lease payments that otherwise would be required under those Topics for modifications not accounted for as separate contracts; and Modifications of contracts do not require an entity to reassess its original conclusion about whether that contract contains an embedded derivative that is clearly and closely related to the economic characteristics and risks of the host contract under Subtopic 815-15, Derivatives and Hedging— Embedded Derivatives.Changes that are related to the replacement of a reference rate To be eligible for the optional expedients in Subtopic 848-20, modifications of contractual terms that change (or have the potential to change) the amount or timing of contractual cash flows must be related to the replacement of a reference rate. Changes made to effect the transition for reference rate reform are considered related to replacement of the reference rate and, therefore, are in the scope of the ASU. Changes to terms that are the result of new business decisions separate from the transition for reference rate reform are not considered related and, therefore, are not in scope. The ASU includes examples of changes that are related and unrelated to the replacement of the reference rate.Tax Implications of Elimination of LIBORA.   Modification of Terms of Debt Instruments or Non-Debt Contracts.Under IRS proposed regulations, if the terms of a debt instrument or non-debt contract are modified to replace, or to provide a fallback to, a LIBOR-referencing rate and the modification does not change the fair market value, there is no gain or loss under the recognition of gain or loss rules. These rules apply regardless of whether the modification occurs by an amendment to the terms of the instrument or agreement or by replacing the existing debt instrument or contract with a new one.B.   Qualified RateThe proposed regulations also provide the rules for determining whether a rate is a qualified rate. The rules provide that the fair market value of a debt instrument or derivative may be determined by any reasonable valuation method, as long as that reasonable valuation method is applied consistently and takes into account any one-time payment made in lieu of a spread adjustment.The debt instrument or non-debt contract are considered equivalent in value after the modification if:at the time of the modification the historic average of the LIBOR-referencing rate is within 25 basis points of the historic average of the rate that replaces it; orthe parties to the debt instrument or non-debt contract are not related and, through bona fide, arm’s length negotiations, determine that the fair market value of modified instrument or contract is substantially equivalent to the fair market value prior to the modification.C.   Transactions and HedgesThe proposed regulations clarify that a taxpayer is permitted to alter the terms of a debt instrument or modify one or more of the other components of an integrated or hedged transaction to replace a rate referencing an IBOR with a qualified rate without affecting the tax treatment of either the underlying transaction or the hedge.D.   One-Time PaymentUnder the proposed regulations, the source and character of a one-time payment that is made in connection with a modification described above will be the same as the source and character that would otherwise apply to a payment made by a payor with respect to the debt instrument or non-debt contract that is altered or modified.E.    Grandfathered AgreementsBecause proposed regulations prevent debt instruments and non-debt contracts from being treated as reissued following a deemed exchange, the debt instrument or contract would not lose its grandfathered status as a result of any modifications made in connection with the elimination of LIBOR.F.    Original Issue Discount (OID) and Qualified Floating RateProposed regulations stipulate three special rules for determining the amount and accrual of OID in the case of a variable rate debt instrument that provides both for interest at a LIBOR-referencing qualified floating rate and for a fallback rate that is triggered when the LIBOR becomes unavailable or unreliable.G.   Real Estate Mortgage Investment Conduit (REMIC)Proposed regulations permit an interest in a REMIC to retain its status as a regular interest despite certain alterations and contingencies.H.   Interest in Foreign CorporationsThe proposed regulations amend the election to allow a foreign corporation that is a bank to compute interest expense attributable to excess U.S.-connected liabilities using a yearly average Secured Overnight Financing Rate (SOFR) in addition to the 30-day LIBOR.Applicability DateThis section applies to an alteration of the terms of a debt instrument or a modification of the terms of a non-debt contract that occurs on or after the date of publication of a Treasury decision adopting these rules as final regulations in the Federal Register. Taxpayers and their related parties may apply this section to an alteration of the terms of a debt instrument or a modification of the terms of a non-debt contract that occurs before the date of publication of a Treasury decision adopting these rules as final regulations in the Federal Register, provided that the taxpayers and their related parties consistently apply the rules of this section before that date.Risks Related to the Elimination of LIBORContract Risk:Risk that contracts which has stipulations dependent in LIBOR will be affected causing inconsistencies and disruption in the execution of it.To mitigate the risk, make a list of all the contracts that may be affected. However, for some it will be challenging if there is no repository of these contracts.Negotiate terms with counterparties for those stipulations relating to LIBOR, although some counterparties may be unknown or difficult to reach.Liquidity Risk:Risk that LIBOR cessation will make it more difficult for existing products to be traded, with more costs and uncertainties.Because of this, companies have to reassess their investment and financing strategies as soon as possible in order to prepare for the cessation of LIBOR.Basis Risk and Value TransferRisk that differences in the timing and terms for similar contracts will result in gaps and inconsistencies in the contracts and value transferSince there is a shift of basis for LIBOR-dependent contracts, the difference will cause value-transfer because of timing concerns, necessity for practical expedients, and differing term structures.To mitigate basis risk, the gaps may be hedged to additional derivatives.Reputational RisksThere is a risk that improper transition plans will result to besmirched reputation to important stakeholders.There should be clear communication with investors, creditors, customers, regulators and other counterparties of the extent of exposure, as well as transition plans that include controls as well as disclosures.Operational and Technology RiskRisk that modification to current operating models and systems that are heavily reliant on LIBOR will result to inaccurate inconsistent outputsDetermine all items that are affected by the cessation, including inventory, IT systems both internal and external, and other data and plan for the capabilities existing and needed for the transition, including control changes.Financial Reporting and Tax RiskRisk of incomplete and inaccurate reporting to accounting bodies and tax authorities.Certain financial reporting and tax reliefs are being proposed by regulators. Therefore, there is a need to study on how these reliefs can be infused in the transition plans.Certain financial instruments with dependence in LIBOR may need to reassess the fair value considerations due to changes in the observability of LIBOR transactions.Disclosures are necessary for all relevant items in the transition plan that have significant accounting impact to policies currently in place. Refer to the discussion above for more details on the accounting and Tax implications of LIBOR cessation.We’d love to help.To ensure that all factors are considered in the pursuit of reliable financial reporting, effective and efficient operations, and compliance with law and regulations, our services can be scaled to accommodate your business needs, especially in considering the impacts of LIBOR Transition. Our Corporate Finance Advisory services, together with our Technical accounting Group, provide a thorough of factors outside the normal course of business, with a strong emphasis on risk and SOX compliance.E-mail us at [email protected] for full consultancy assessment.About the AuthorsTo have a thorough discussion on the matter, please contact:Jezaniah Castro has extensive experience in preparation and filing of federal, state and local income tax returns for businesses and high net-worth individuals and other business-related filings, including sales and use tax in compliance with applicable US federal and state tax laws and regulations. She has also dealt with IRS and State tax notices, tax legislation, or audit workpapers in advocating taxpayer’s position to the taxing authorities.JM Miclat has years of Advisory experience with EY Philippines mainly focused on leading SOX 404 compliance and top-risk audit engagements from one of the largest Fast Moving Consumer Goods (FMCG) company. He has extensive knowledge in applying Topics 606 and 842 of US GAAP to business processes. He ranked 9th in the CPA Board Examinations (PH) in 2016.DisclaimerThe information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. It is not intended to be relied upon as accounting, tax, or other professional service. Please refer to your advisors for specific advice. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation.

Read More >
Blogs

Empowering Finance Teams to Deliver Real-Time Insights

Empowering Finance Teams to Deliver Real-Time Insights

At A GlanceAn effective financial partnership requires more than just accurate reporting. It also requires the confidence to provide real-time insights. While rigid structures are necessary to protect time and data integrity, they can become bottlenecks if they prevent teams from communicating spontaneously. A partner-led engagement, where a senior professional owns the relationship, is what closes the gap between back-office execution and front-line decision-making.As a working mom with a two-year-old, I’ve learned that kids thrive on structure. Predictable mealtimes, predictable bedtimes, a rhythm to the day. That scaffolding is what lets a small child feel safe enough to actually be a kid.The same thing is true at work, though it took me longer to learn. If I don’t consciously block out 4:00 to 6:00 PM every weekday for focused work including reviews, end-of-day approvals, urgent client questions, that time gets eaten by everything else. That structure is non-negotiable.But structure can’t harden into rigidity. If every single thing inside those two hours has to be pre-planned and pre-approved, I miss the moments that actually matter. The unprompted question. The quick judgment call. The real-time answer a client needs right now.That same tension shows up across our work with growing companies. Clean reporting and clear processes are what make good decisions possible. But when that discipline hardens into too much process, it can quietly slow down the real-time insight our clients need most.When Strong Process Needs Clear JudgmentA while back, I visited a client to review our engagement. The work was clean. Reporting was on time. The team was following the review structure we had built to protect quality and consistency.That structure mattered. It still does.As engagements grow, process is what keeps the work reliable. It creates accountability. It protects the client. It gives the team a clear way to manage volume without depending on one person’s memory or judgment alone.But in this conversation, the client helped us see something important. The issue was not that the team was doing anything wrong. The issue was that our communication structure needed more clarity around timing and judgment.Over time, more review checkpoints had been added to make sure answers were accurate before they reached the client. The intention was right. But for some routine questions, where the answer was already clear and supported by the work, the extra layer was slowing down the conversation.The client did not want less quality control. He wanted the benefit of the team’s knowledge in the moment when he needed it.That distinction matters.Calibrating the StructureWhat we learned from that conversation was not that we needed less process. We needed to help the team use the process with more confidence.In finance, review matters. Quality control matters. Those layers are what protect accuracy, especially as a client relationship grows and the work becomes more complex. A strong process gives everyone the same foundation to work from.But process should not make a capable team feel like they have to pause on every answer, even when the work already supports it.That was the adjustment we needed to make.If a question involved risk, uncertainty, or a technical judgment call, it still needed review. That did not change. But when the question was routine, the data was clear, and the team knew the client context, we wanted them to feel confident responding in the moment.The difference may seem small, but it matters to the client.A delayed answer can make a team feel distant, even when they are doing excellent work behind the scenes. A timely answer, grounded in accurate work, helps the client feel that the team is close to the business and paying attention.The relationship improved because the team had clearer guidance. Not less structure. Better use of the structure we already had.Financial clarity is not created by reporting alone. It comes from accurate work, strong review, and people who know how to communicate what the numbers are already telling them.Why Partner-Led Engagements Make This PossibleThis is where the engagement model matters more than people realize. When a relationship is owned by a senior professional from day one, real-time insight is built into how the work happens. There’s no approval ladder to climb for routine questions. The person closest to the client is also the person with the expertise to answer.That’s by design at Scrubbed. Every engagement is led by a senior professional who knows the business, the industry, and what keeps the client up on a Sunday night before a Monday board meeting. The same person you talk to about a tax question is the one who saw your last close. The same person who reviewed your audit prep is the one you’ll call when an investor asks something hard.The strongest client relationships are not built on speed alone. They are built on reliable work, clear standards, and senior professionals who know when to pause, when to review, and when to answer with confidence.The TakeawayA real finance partnership is more than filling a reporting cycle. It’s having an experienced professional embedded deeply enough in your business to drop the formal script and give you a straight, confident answer.When workflows are clear, decisions become more reliable. Structure is what allows a finance function to scale reliably, but the confidence to provide real-time insights is what makes it a true partnership.

Read More >

Links

Contact Information

SF Bay Area Headquarters
111 Anza Boulevard, Suite 320, Burlingame, CA 94010, United States

Phone: (800)837-5160
Email: [email protected]

"Scrubbed" is the brand name under which Scrubbed Advisory, LLC and Scrubbed Assurance LLP provide professional services. Scrubbed Advisory, LLC and Scrubbed Assurance LLP practice in an alternative practice structure in accordance with the AICPA Code of Professional Conduct and applicable law, regulations, and professional standards. Scrubbed Assurance LLP is a licensed independent CPA firm that provides attest services to its clients, and Scrubbed Advisory, LLC provides tax, finance, and support services to its clients. Scrubbed Advisory, LLC is not a licensed CPA firm.

Copyright © Scrubbed. All rights reserved.