How Scrubbed Transformed Adapture Renewables' Finance and Accounting Operations
How a utility-scale solar developer scaled complex multi-entity structures, tax incentives, and FP&A without inflating headcounts.
The Challenge
Multi-Entity Complexity & Niche Industry Financing
"Every new project that Adapture Renewables undertakes is a new company. It's a new LLC and a new set of books to maintain." — Ivan Kwan, VP of Corporate Finance and Treasurer
The Partnership
Intentional Scaling with a True Business Partner
Starting in 2018 with AP/AR support, Adapture Renewables gradually expanded its engagement with Scrubbed following the departure of an internal controller. Scrubbed took over end-to-end accounting, tax issues, FP&A, asset management analysis, and custom dashboard development to deliver complete visibility into asset performance.
"It was a new model for me to adopt, and there were some butterflies in my stomach... But very soon, I realized the competency level was really high, and Scrubbed was able to help us resolve or address the challenges of scaling. Scrubbed went from having a staff accounting capacity to being a true business partner."
Ivan Kwan
VP of Corporate Finance & Treasurer, Adapture Renewables
The Results
Benefits of Scrubbed's Strategic Finance Support
Complex Entity & Tax Management
Expert handling of project-level LLC books, renewable energy credits, and unique financing structures like sale-leasebacks, partnership flips, and inverted leases.
Asset Visibility & Dashboards
Built custom financial dashboards combining hard accounting data with operational tracking mechanisms for clear portfolio insights.
Flexible High-Skill Talent
Access highly qualified accounting and FP&A specialists tailored to the niche renewables sector at a fraction of the cost of U.S. hiring.
End-to-End Strategic Support
Transitioned beyond transactional bookkeeping into comprehensive tax support, FP&A modeling, and asset management analysis.
Why Scrubbed
A Trusted Partner for Adapture Renewables
Adapture Renewables views Scrubbed as a seamless international extension of their internal team rather than a traditional vendor.
High Technical Competency
Deep domain knowledge in real estate, energy taxation, and financial analysis capable of executing complex work seamlessly.
True Team Integration
Operates as an active "arm based in the Philippines," participating in internal training to continually broaden energy sector knowledge.
Strategic Flexibility
Frees executive bandwidth to focus on corporate growth while providing the flexibility to scale support into management and IT.
A Scalable Partnership for Continued Growth
"Given the cost-effectiveness of this approach, you can get more qualified talent for a similar or lower cost, which gives you more flexibility to recover from mistakes and figure things out as you are growing... I think the relationship is very strong, much more than you would get from a typical outsourcing outfit."
Ivan Kwan
VP of Corporate Finance & Treasurer
Related Insights
Scrubbed Announces New Promotions and Expansion of Its Leadership Team
Scrubbed has handpicked four stellar professionals to take the helm as directors, reinforcing their unwavering dedication to fueling success for businesses of all shapes and sizes. Masters in the fields of accounting, finance, and taxation, these new directors are poised to steer their clients toward groundbreaking accomplishments. This initiative is just the beginning as Scrubbed continues its vision of revolutionizing the industry, unlocking a bright future for the company and its clients. Michael John David after seven years with Scrubbed is now the Director of Real Estate Accounting Solutions and Clean Technology Industries. He has served in key roles at Scrubbed for seven years. His impressive credentials include Summa Cum Laude distinction, where he ranked as a top scorer in the 2015 CPA board exam, Certified Forensic Accountant (CrFA) license, and degrees in both Business Management and Mini-MBA from the International Business Management Institute in Berlin, Germany. Grateful for the opportunities and challenges that have shaped him both personally and professionally, MJ will continue to focus on the quality and consistency of his team’s work. Leveraging his team’s expertise in end-to-end accounting for US-based real estate and clean technology clients, ranging from startups to those with substantial investment portfolios, he is confident in delivering accurate and high-quality reports tailored to each client’s unique needs. With over 12 years of experience in the accounting industry, Arian David assumes the role of Director for the Distribution and Retail Sectors. Her extensive background in inventory management and cost accounting, along with her team’s significant contributions in implementing advanced inventory systems for clients, has streamlined manual processes and improved overall efficiency, effectively addressing the intricacies of these industries. Arian brings a decade-long track record to her position, having worked with EY Philippines and Singapore, where she honed her expertise in general accounting and auditing. She is determined to guide her team toward growth and success, she draws inspiration from the trajectory of Scrubbed. As the new Director of E-commerce and Family Office at Scrubbed, Denissa Ysabel Dizon – Ballos firmly believes in the enduring presence of e-commerce. In response to the rise of ESG, sustainability, and carbon reduction, her team is enthusiastic about fostering stronger relationships with clients through more frequent dialogues, addressing their evolving needs with standardized and efficient processes. Yss started her career with Grant Thornton doing audit work and moved on to Shell in its global shared services group. With over 13 years of experience in general accounting, financial report preparation, and accounting and auditing education, she has substantial experience in serving companies within the merchandise and retail sectors. With almost five years at Scrubbed and a total of 15 years in the industry, Gliezel David now holds the position of Director of the Technical Accounting Group . Her decade-long tenure as an external auditor laid the solid foundation for her career. As well as her stint as a methodology senior manager in one of the big four accounting firms in the Philippines. Armed with extensive knowledge of IFRS, US GAAP, and SOX/PCAOB reporting requirements, Glie and her team offer clients accurate accounting guidance and frameworks, providing tailored analyses for each client’s specific needs. Their technical accounting support helps businesses navigate complex reporting requirements with confidence. She aims to double her team’s workforce by next year to serve the broader clientele effectively. Scrubbed is hiring for a number of careers in accounting. Learn more about the Scrubbed team and how the organization fosters career growth. Visit Scrubbed.net/careers.
SESSION 1: Building Scalable Growth Through Strategic Fractional Partnership
How Adapture Renewables Built Scalable Growth with Strategic Fractional Partnership How do you keep operations ongoing… while doing a deep audit endeavor? This was the critical question facing Ivan Kwan, VP of Corporate Finance at Adapture Renewables, as his company began to scale. It’s a classic high-growth dilemma: the core business is moving at top speed, but the finance team is stretched thin, facing strict deadlines and budgetary constraints. In our recent “The Future is Fractional” virtual conference, Ivan sat down for a candid fireside chat with Diana Peralta from Scrubbed to share his playbook for solving this exact problem. He detailed how he moved from handling the company’s first audit by himself to building a scalable, resilient finance function through a strategic fractional partnership with Scrubbed. If your business is struggling to balance growth and resources, here are the key highlights from his session. How Adapture Renewables Built Scalable Growth with Strategic Fractional Partnership This was the critical question facing Ivan Kwan, VP of Corporate Finance at Adapture Renewables, as his company began to scale. It’s a classic high-growth dilemma: the core business is moving at top speed, but the finance team is stretched thin, facing strict deadlines and budgetary constraints. In our recent “The Future is Fractional” virtual conference, Ivan sat down for a candid fireside chat with Diana Peralta from Scrubbed to share his playbook for solving this exact problem. He detailed how he moved from handling the company’s first audit by himself to building a scalable, resilient finance function through a strategic fractional partnership with Scrubbed. If your business is struggling to balance growth and resources, here are the key highlights from his session. Building Trust with an Incremental Strategy For leaders worried about a “loss of control,” Ivan detailed his deliberate, incremental strategy for engaging a fractional team. Instead of going all-in, Adapture Renewables started with hiring people from Scrubbed for foundational tasks like bookkeeping (AP/AR). This allowed them to build confidence in the process and establish approval workflows that maintained control. This approach also opened the door to an unexpected benefit: the ability to “sample a buffet” of services. As Ivan explained, they could engage specialized expertise, like ESG reporting or technical tax, for a one-off engagement without having to hire a full-time, niche expert. Integration is a Mindset, Not a Memo I looked at the fractional staff as our staff, just housed elsewhere. The session’s most powerful insights centered on how to make a fractional partnership work. For Ivan, success came from a crucial mindset shift. Ivan warned against treating fractional teams like “a 1-800 number… a black box you call.” The key, he said, was a crucial mindset shift: This meant investing in integration through frequent communication and, most importantly, face-to-face time. Ivan admitted he didn’t visit the Scrubbed office until 2022, already four years into the partnership. When talking about his experience, he shared that “I would often tell that in that 10 days or so, I felt more connected with the team than in the prior four years combined” Achieving Flawless Compliance and Tech Adoption The move paid off. When asked about the measurable impact, Ivan pointed to two key outcomes: Flawless compliance: The session’s most powerful insights centered on how to make a fractional partnership work. For Ivan, success came from a crucial mindset shift. Ivan warned against treating fractional teams like “a 1-800 number… a black box you call.” The key, he said, was a crucial mindset shift: Tech adoption: The fractional team, already adept with tools like Zoom, Slack, and Asana, helped speed up Adapture’s own tech adoption. When the pandemic hit, it “was not adopting something new or novel,” Ivan explained. “It was just scaling up what we already had, the ecosystem we already had with the Scrubbed team.” Watch the Full Session Ivan’s story is a masterclass in how to strategically leverage fractional talent to not only manage growth but also to build a more resilient and efficient operation. To get all the insights, including Ivan’s advice on the single best role to start with and his hindsight on what he would do differently, you can watch the full session recording. GET YOUR ON-DEMAND ACCESS
Considerations for the 2022 Inflation Reduction Act
On August 16, 2022, the H.R. 5376 or Inflation Reduction Act of 2022 was recently signed and passed into law by US President Joe Biden. Calling the Act as “one of the most significant laws in our history”, it covers numerous provisions to address energy security and climate change programs, deficit reduction, prescription drug pricing, and healthcare premiums. This Act is a significant piece of legislation that fulfills some initiatives that have been embroiled in congressional debates for decades and is said to be the largest congressional action and investment in fighting climate change in US history, as of date. The Act also has a provision that raises taxes on wealthy corporations and makes prescription drugs and healthcare more accessible and affordable. Industry update: If Your Company is Involved in Leasing, Have You Met the Requirements of ASC 842? What’s in the Inflation Reduction Act? If you are already familiar with the Build Back Better bill, the Inflation Reduction Act is a ‘slimmed-down’ version of such, in which is aimed to make significant investments in the US’ “social safety net” (programs that will benefit the low-income or vulnerable individuals and communities) as part of the budget reconciliation process. The Act is meant to aid inflation by reducing the US national debt, healthcare, and energy costs over the years. Below is the summary of the Act’s salient provisions: Climate change and energy security provisions Numerous investments in climate protection, including tax credits and rebates aimed at reducing carbon emissions and offsetting energy costs for households; investments in clean energy production such as research, loans, grants, and also tax credits to increase domestic manufacturing capacity for solar panels, wind turbines, batteries, and other integral components of clean energy production and storage; programs to decrease the environmental impact of agriculture; and more. With the new law comes the extensions of green energy tax credits ranging from 2024-2032. In addition, Green Energy Credits was added to promote sustainable growth. Aside from the credits, the US Government also made investments to address climate issues and encourage the citizens to switch to renewable energy. It is believed that this change will reduce climate pollution by up to 40% until 2030. This provision will cause a significant shift in customer demands which can affect traditional companies’ profitability, particularly those in the energy and automotive industry, in which products are based and reliant on fossil fuels and products with excessive carbon footprints. Unless companies adapt to these demand changes, inventories can be rendered obsolete, assets rather impaired, and businesses going under. Consideration should also be taken on how Green Energy Credits should be accounted for. Extension of Affordable Care Act (“ACA”) subsidies Extends the temporary expansion of Premium Tax Credits for additional two years through 2025. Under the current law, the expansion offers eligibility to households with incomes between 100% to 400% of the federal poverty level. Under ACA, medical insurance premiums are currently subsidized by the US federal government to lower premiums. But these are scheduled to expire at the end of 2022, if not extended, which could cause millions of Americans to lose their health insurance, according to the U.S. Department of Health and Human Services. This will continue to affect the cash flows for certain companies, especially those mandated by the ACA to provide affordable healthcare to their full-time employees since noncompliance could result in hefty annual fines. International Revenue Service ("IRS") funding Investment of approximately $80 billion over the next 10 years for IRS enforcement activities, including IT Systems modernization, taxpayer services, and the hiring and training of new auditors. Stringent enforcement of IRS audit and filing is expected. Thus, companies should be more vigilant in compliance with rules and regulations and be audit-ready to avoid assessments, penalties, or even litigation. In addition, companies must carefully account for uncertain tax positions and follow the guidance of ASC 740. Corporate Alternative Minimum Tax (CAMT) Creates a 15% corporate alternative minimum tax rate for corporations with average annual earnings that exceed $1 billion over three taxable years. While tax rates on individuals and households will remain the same. CAMT-exempt are companies with combined income with unrelated businesses of shared ownership of an investment fund/partnership even if it exceeds the threshold and corporate subsidiaries of private equity firms. Affected companies should consider the impact of increased tax liability on their cash flows, forecasts, and investment/growth strategies. Excise Tax on Stock Buybacks or Repurchases Imposes a 1% excise tax on domestic publicly-traded corporations when it buys back its own shares directly or through a more than 50% owned subsidiary corporation or partnership. This can impact companies as to their corporate buyback transactions, including those with outstanding shares subject to repurchase rights, stock issued in the initial public offerings of special purpose acquisition companies, and redeemable preferred stocks. Prescription drug price reforms Allows Medicare to negotiate the price of certain prescription drugs to bring down the price beneficiaries will pay for their medications and limits the price growth of certain drugs due to inflation by having a $2,000 cap on the annual out-of-pocket prescription drug costs for Medicare recipients starting in 2025. It also repeals the implementation of the “rebate rule,” which is scheduled to increase drug-related Medicare costs beginning in 2027, and redesigns the Medicare Part D benefit formula. This can impact the bottom line and cash flow projections of various healthcare, pharmaceutical, and other life sciences and drug related companies. This can also affect pricing schemes and inventory valuation to Net Realizable Values. Other Provisions: Research Tax Credit – Beginning after December 31, 2022, the Research & Development (R&D) tax credit limit of $250,000 for qualified small businesses can now be applied against payroll tax liability up to $500,000. Passthrough Loss Limitations – IRA included a two-year extension of the deductibility of the excess business losses limitation to pay for the late changes to the CAMT of partnerships and S corporations until 2028. You may refer to this link for the full legislative text of the Inflation Reduction Act of 2022. We’d love to help. This summarizes the significant provisions in the Act. To ensure that all factors are considered in the pursuit of reliable financial reporting, effective and efficient operations, and compliance with law and regulations, including risk and SOX compliance and corporate finance advisory , our services can be scaled to accommodate your business needs. Visit Tax Compliance and Advisory Page