On March 25, 2025, the President signed an Executive Order (EO) that provides for a dramatic change to the way the U.S. Treasury will deal with paper-based payments. In a move to protect against fraud and increase governmental efficiency, as of September 30, 2025, paper checks will cease being issued by the Secretary of the Treasury. This is to include most federal disbursements, such as federal benefits payments (e.g. Social Security and veteran payments), vendor payments, and tax refunds. 

In addition, the government will cease accepting paper checks as soon as possible, including all tax payments made by the taxpayers to the U.S. Treasury. 

All agencies are directed to transition to a form of Electronic Funds Transfer (EFT), including direct deposit, prepaid card accounts, and other digital payment options, and take all steps necessary to enroll recipients in EFT payments. Debit and credit card payments and digital wallets, and real-time payment systems could also be used. To that end, the federal agencies affected by the EO will be required to submit a compliance plan, along with the Secretary of the Treasury which will be issuing an implementation report detailing its progress. Therefore, additional guidance and instruction will be forthcoming in the next few months. 

The EO provides that exceptions will be made for individuals or entities who do not have access to banking services or electronic payment systems and/or other circumstances. However, this will require further guidance from the Treasury. 

Recommended immediate action – enroll in an EFT 

The federal government provides any number of EFT systems to pay taxes to the government. These include the use of EFTPS (Electronic Federal Tax Payment System), IRS Direct Pay or the use of the taxpayer’s on-line IRS account. It should be noted that signing up for certain of the above systems can take time, so it is recommended to start now. The EFTPS system, for example, requires that the Treasury mail a Personal Identification Number (PIN) to the taxpayer’s address of record to complete taxpayer sign up. This can delay signup. In addition, the above systems may not be available to all types of entities, therefore, it is important to begin the process as soon as possible. 

With respect to tax refunds, certain taxpayers can request the Treasury to directly deposit the refund into a bank account with the filed income tax return. 

Professional support and support with BPM 

This Executive Order represents a significant shift in how federal payments and collections will be processed, with far-reaching implications for individuals, businesses, and tax practitioners. The transition to electronic-only payments will require careful planning and proactive steps to ensure compliance with the new requirements. 

Given the complexity of these changes and the need for timely action, particularly regarding EFT enrollment, taxpayers and entities should consider seeking professional guidance to navigate this transition effectively. BPM’s tax professionals are closely monitoring developments related to this Executive Order and can aid with EFT enrollment processes, compliance planning, and addressing any unique circumstances that may require special consideration. 

For more information about how these changes may affect your specific situation, or for support with implementing the necessary electronic payment systems, please reach out to BPM. Our team is prepared to help ensure a smooth transition to the new digital payment requirements while maximizing available options under the forthcoming Treasury guidance. 

As your commercial real estate (CRE) company grows, the financial systems that once served you well may become impediments to further success. Recognizing when you’ve outgrown your financial infrastructure is crucial for maintaining competitive advantage and operational efficiency.  

5 key indicators that your CRE needs to upgrade your financial infrastructure 

This article will discuss five key indicators that signal it’s time for your CRE company to upgrade its financial systems and processes. 

1. Reliance on manual processes and spreadsheets 

When your team spends significant time manually entering data into spreadsheets, it’s a clear sign your systems are not integrated efficiently. This spreadsheet chaos—with multiple versions, outdated data and inconsistent records—can lead to errors and inefficiencies that harm your business. 

Time-consuming tasks like reconciliations, data transfers and report creation also drain valuable resources that could be directed toward growth initiatives. These manual processes not only slow down operations but also increase the likelihood of human error. 

2. Lack of real-time visibility and reporting 

Delayed reporting that hinders timely decision-making indicates a serious lack of real-time visibility. When data resides in multiple systems, analyzing overall performance becomes difficult due to these fragmented data silos. 

Limited customization options for reports also make it challenging to meet specific reporting needs unique to CRE operations. Without immediate access to accurate financial data, you’re essentially navigating your business blindfolded. 

3. Challenges with growth and complexity 

As your CRE company expands, you might notice increased reliance on third-party tools to compensate for limitations in your core system. This creates a complex and less efficient technology stack. 

Managing users and access rights becomes increasingly cumbersome as your team grows. Additionally, your financial system may struggle to handle complex transactions typical in CRE operations, such as consolidations or multiple depreciation methods. These limitations create bottlenecks that impede your company’s ability to scale effectively. 

4. Increased risk and compliance issues 

Manual processes and lack of robust controls significantly increase audit risks and compliance challenges. Data accuracy issues stemming from manual entry and poor system integration impact decision-making quality. 

In addition, when your system lacks built-in fraud prevention features, it becomes vulnerable to manipulation—a serious concern for CRE companies handling substantial financial transactions and property assets. 

5. Additional warning signs 

Struggling to manage inventory and warehouse operations points to inadequate system support, leading to inefficiencies and operational problems. For CRE companies managing properties and maintenance supplies, these inefficiencies directly impact tenant satisfaction and property values. 

In addition, the inability to integrate with essential third-party tools hinders automation and efficiency. In today’s interconnected business environment, your financial infrastructure must communicate seamlessly with property management, leasing, and maintenance systems. 

Transforming your financial foundation with BPM  

When these signs appear in your CRE operations, it’s time to consider upgrading your financial infrastructure. BPM brings deep industry knowledge and technological capabilities specifically designed for commercial real estate companies facing these challenges. Our team helps CRE companies implement scalable financial systems that provide real-time visibility, automate manual processes, and ensure compliance with industry regulations. 

For a complimentary assessment of your current financial infrastructure and to learn how our tailored solutions can support your growth objectives, contact us. 

As a crypto company, your business moves at the speed of blockchain. Whether you’re building on distributed ledger technology, launching new tokens, or scaling your digital asset operations, your accounting needs are as dynamic as the industry itself.  

At BPM, we empower you to navigate the complexities of cryptocurrency accounting, so you can focus on growth and innovation. 

Why crypto accounting is different 

Crypto assets—including cryptocurrencies, NFTs, utility tokens, and other distributed ledger-based tokens—are fundamentally different from traditional assets, and that’s why their accounting treatment stands apart. This starts with how crypto assets are classified.  

Crypto classifications as intangible assets  

Under current U.S. Generally Accepted Accounting Principles (GAAP), most crypto assets are classified as intangible assets. This means they are not considered cash, cash equivalents, or financial instruments, and they don’t give you enforceable rights to underlying goods or services.  

Instead, they exist on a blockchain, are secured by cryptography, are fungible, and are not created by the reporting entity or its affiliates. This classification was established because crypto assets don’t fit neatly into existing asset categories like cash or equity securities. But it’s not that simple.  

The shift to fair market value measurement  

Historically, crypto assets were measured using the traditional intangible asset model, which required companies to record them at historical cost and test for impairment. This meant that if the fair value dropped below cost, you had to recognize a loss, but if the value increased, you couldn’t recognize a gain until you sold the asset. This approach often led to financial statements that didn’t reflect the true economic reality of your crypto asset holdings, especially in volatile markets. 

Recognizing these limitations, the Financial Accounting Standards Board (FASB) introduced new guidance (ASU 2023-08) that requires certain crypto assets to be measured at fair value at each reporting period.  

Now, both unrealized gains and losses are recognized in net income, providing a more accurate and timely reflection of your financial position and performance. This is a significant shift from the previous impairment-only model and brings crypto accounting closer to how equity securities are treated under GAAP. So what does this all mean? 

Enhanced disclosure and reporting requirements  

With the new standards, companies must present crypto assets separately from other intangible assets on the balance sheet and provide enhanced disclosures.  

This includes details such as the: 

• Name 
• Cost basis
• Fair value 
• Number of units held for each significant crypto asset 

Plus any information about any contractual sale restrictions and the methods used to determine cost basis. These requirements apply to both annual and interim periods and are designed to increase transparency for investors and other stakeholders. You also have to disclose if >10% of holdings are in a single asset or counterparty  

For crypto-native businesses, these changes mean your accounting systems must be able to track fair value across multiple blockchains and wallets, account for frequent and complex transactions, and manage tax lot tracking for gains and losses. For public companies, segment reporting may apply if crypto activities represent a material business line.  

You also need to address the classification of different types of digital assets, such as stablecoins or utility tokens, which may have unique accounting implications. 

Key accounting challenges for crypto companies 

We now understand how crypto accounting differs from accounting for traditional assets and securities. These differences cause specific challenges crypto companies (and most importantly, their accounting team) need to be highly attuned to.  

Specific asset classification and recognition 

We talked a little bit about this earlier but under FASB’s ASU 2023-08, companies must now classify in-scope crypto assets separately on the balance sheet, distinguishing them from other indefinite-lived intangible assets like trademarks. This requires evaluating: 

• Token type: Utility tokens (access to services) vs. security tokens (regulated financial instruments). 
• Liquidity and market activity: Whether assets qualify for fair value measurement based on active market criteria. 
• Contractual restrictions: Assets with sale limitations may require separate disclosure or valuation adjustments. 

For example, stablecoins pegged to fiat currencies may need different treatment than volatile cryptocurrencies, while NFTs often fall outside FASB’s current scope, requiring judgment under existing guidance. 

Initial measurement and valuation 

Determining fair value is straightforward for widely traded tokens—so-called Level 1 inputs—where active markets provide clear pricing. However, for less liquid or emerging tokens, reliable market data can be scarce. In these cases, companies must turn to Level 2 or Level 3 inputs, such as third-party pricing models or decentralized oracles, which introduces a layer of subjectivity and demands careful documentation. 

Tracking the cost basis for each asset adds another layer of cash flow complexity. Crypto companies often receive assets through mining rewards, airdrops, or hard forks, each requiring precise allocation of acquisition costs across multiple wallets and platforms. Without robust systems in place, it’s easy to lose track of these details, especially as transaction volumes grow. 

Previously, impairment rules resulted in “asymmetric” accounting—losses were recognized promptly, but gains could only be realized upon sale. The move to fair value aims to resolve this imbalance, allowing companies to recognize both unrealized gains and losses as they occur, providing a clearer picture of financial health. 

For assets that lack clear market data, the onus is on the company to rigorously document its valuation methods. Auditors and regulators expect transparent, well-supported methodologies that can stand up to scrutiny, making thorough recordkeeping and policy development essential for every reporting entity. 

Transaction complexity and data integrity 

Every blockchain interaction—from DeFi yield farming to cross-chain swaps—creates audit trails that traditional systems struggle to capture: 

• Multi-chain activity: Transactions across Ethereum, Solana, and layer-2 networks (e.g., Arbitrum) require unified tracking tools. 
• Smart contract interactions: Automated tax lot tracking is critical for staking rewards, liquidity pool entries/exits, and governance voting. 
• Reconciliation gaps: Disparities between exchange APIs, wallet addresses, and on-chain data often lead to manual corrections 

Solutions like blockchain explorers with SOC reports (rare) or purpose-built crypto accounting software are becoming essential. 

Emerging challenges crypto companies should keep an eye on 

Beyond core accounting, crypto-native companies face: 

• Regulatory arbitrage: Divergent global standards (e.g., EU’s MiCA vs. US state-by-state rules) complicate cross-border operations. 
• Proof-of-reserves audits: Exchanges and custodians must cryptographically verify holdings without exposing sensitive wallet data—a process still evolving. 
• DeFi and DAO governance: Decentralized entities blur lines between equity, liabilities, and revenue recognition, especially with token-based voting rights.  

Navigating these challenges requires not only specialized accounting knowledge and adaptable systems, but also a proactive approach to policy development and technology—ensuring your company can confidently manage digital assets, stay compliant, and turn complexity into strategic opportunity. 

Essential accounting capabilities for crypto companies 

As your business grows in the digital asset space, your accounting systems must keep pace with the complexity and speed of your operations.  

When evaluating accounting solutions for your crypto asset holdings, prioritize these essential capabilities: 

Automated transaction tracking 

Manual tracking simply can’t keep up with the volume and velocity of crypto transactions. Look for solutions that: 

• Automatically capture on-chain activity across all your wallets and exchanges 
• Integrate directly with major exchanges and DeFi protocols via APIs 
• Record USD values and fair value at the exact time of each transaction 
• Generate audit-ready transaction logs with business purpose tags 
• Provide a complete, traceable history for every digital asset from initial recognition to final disposition 

Automated tracking not only streamlines your workflow, but also supports accurate financial reporting, comprehensive income calculations, and compliance with enhanced disclosure requirements. 

Multi-chain and protocol support 

Your operations likely span multiple blockchains, layer-2 solutions, and DeFi protocols. Make sure your accounting platform can: 

• Support all chains and digital assets where you hold or transact 
• Track cross-chain transfers and interchain bridge activity 
• Reconcile smart contract interactions and DeFi participation 
• Adapt quickly to new protocols as your business evolves 

This flexibility ensures you can measure assets at fair value and report accurately, no matter how your digital asset strategy grows. 

Tax lot tracking and cost basis management 

Accurate tax lot tracking is critical for calculating gains and losses, managing tax implications, and optimizing your net income. Your system should: 

• Track cost basis for every acquisition, including mining rewards, airdrops, and hard forks 
• Support multiple calculation methods (FIFO, LIFO, specific identification) 
• Calculate realized and unrealized gains/losses for each reporting period 
• Generate tax-ready reports tailored to your jurisdiction and integrate with tax filing tools 

Effective tax lot management also helps you maximize benefits from tax loss harvesting and ensures your financial statements reflect the true performance of your crypto asset class. 

Seamless integration and scalability 

As you’re looking for cryptocurrency accounting software, ensure you prioritize different integrations to help you scale. Choose accounting technology that: 

• Syncs with your general ledger and ERP systems (e.g., QuickBooks, NetSuite, Xero) 
• Scales with your transaction volume and supports new asset types as your business grows 
• Provides robust controls and documentation for audit readiness and regulatory compliance 

Proactive advisory and continuous improvement 

Your accounting partner should do more than implement systems—they should help you: 

• Develop comprehensive accounting policies for digital assets, including fair value measurement and enhanced disclosures 
• Monitor evolving accounting standards and tax regulations 
• Identify opportunities to improve operating cash flows and streamline reporting processes 

By focusing on these capabilities, you empower your team to turn crypto accounting from a compliance challenge into a strategic advantage—supporting transparency, agility, and growth at every stage of your digital asset journey.  

Selecting the right accounting firm for your crypto business 

Choosing an accounting firm for your digital asset operations isn’t just about finding a service provider—it’s about building a strategic alliance that empowers your growth and gives you confidence in every reporting period. Here’s what to look for: 

Specialized knowledge that goes beyond the basics 

Your accounting team should bring more than general experience—they need a deep understanding of blockchain technology, digital assets, and the evolving landscape of crypto assets. Look for a firm that: 

• Understands the technical fundamentals of distributed ledger-based systems and smart contracts 
• Knows how to classify and measure different token types, including utility tokens, security tokens, and stablecoins 
• Stays current with industry-specific regulatory and disclosure requirements and the latest guidance from the Financial Accounting Standards Board (FASB) 
• Advises on DeFi participation, DAO governance, and cross-border compliance challenges 

Ask about their ongoing training, certifications, and commitment to continuous learning in digital asset accounting. You want a team that invests in staying ahead, so you can too. 

Technology infrastructure built for digital assets 

Effective crypto accounting isn’t possible without the right technology. Your accounting firm should offer: 

• Blockchain analytics platforms that capture and reconcile transactions across all your wallets and exchanges 
• Seamless integration with major exchanges, DeFi protocols, and smart contracts 
• Real-time dashboards and robust reporting tools for enhanced disclosures and financial statement accuracy 
• Strong data security and audit trail capabilities to support compliance and transparency 

Ask your prospective firm to demonstrate how their technology stack addresses the unique challenges of crypto asset holdings and provides actionable insights for your business. 

Proactive regulatory awareness and guidance 

With digital asset regulations evolving rapidly, your accounting partner should be your early warning system. Look for a firm that: 

• Monitors developments across all relevant jurisdictions and adapts quickly to new pronouncements 
• Provides proactive guidance on compliance, fair value measurement, and enhanced disclosure requirements 
• Understands reporting obligations for private companies, not-for-profit entities, and investment companies 
• Maintains relationships with regulatory bodies and industry groups 
• Has strong internal controls for crypto transactions  

Staying ahead of regulatory changes is critical for managing risk and seizing new opportunities in the crypto space.  

Experience with crypto audits 

Digital assets receive heightened scrutiny during financial audits, and proactive preparation is essential for building stakeholder trust and reducing audit complexity.  

When you work with an accounting firm that understands the nuances of crypto assets, you can confidently address the unique audit requirements that come with holding digital assets on your balance sheet. 

Together, you should: 

• Document robust ownership verification methods, including cryptographic proof of control over wallets and accounts. 
• Establish clear procedures for valuation documentation, ensuring assets are measured at fair value and supported by reliable data sources. 
• Implement continuous monitoring for impairment and valuation adjustments, so your financial reporting always reflects current market conditions. 
• Develop comprehensive disclosure templates that meet enhanced requirements for crypto asset holdings, contractual restrictions, and fair value methodologies. 
• Maintain audit-ready transaction logs and reconcile on-chain and off-chain data to ensure completeness and accuracy of your digital asset records. 

When you prepare for audit scrutiny in this way, you not only streamline the audit process and reduce costs, but you also provide stakeholders with the confidence that your crypto asset reporting is transparent, accurate, and fully compliant with evolving standards. 

The future of crypto accounting 

The accounting treatment for digital assets continues to evolve. Stay ahead by monitoring these developments: 

• Fair value accounting may replace the current impairment model, allowing for more accurate representation of cryptocurrency holdings. The Financial Accounting Standards Board (FASB) has indicated movement in this direction, which would align accounting treatment more closely with the economic reality of these assets. 
• Specialized disclosure frameworks continue to develop, providing greater transparency around digital asset activities. These frameworks aim to address the unique attributes of cryptocurrency operations that aren’t captured in traditional financial statements. 
• Integrated reporting solutions that combine on-chain data with traditional accounting systems will become increasingly sophisticated, reducing manual reconciliation needs while improving financial visibility. 

Taking your crypto accounting to the next level 

Effective crypto accounting does more than keep you compliant—it helps you make smarter decisions and unlock new opportunities. With the right partner and the right processes, you can turn digital asset complexity into a strategic advantage. 

As one of the early CPA firms to embrace the crypto industry, BPM has spent over 11 years developing deep knowledge and proven methodologies specifically for digital asset businesses. Our extensive experience across market cycles, regulatory changes, and evolving technologies means we understand not just where the industry is today, but where it’s headed—giving you the strategic insight to stay ahead. 

Ready to strengthen your crypto accounting? Contact BPM to discover solutions tailored to your goals. 

Navigating a crypto audit can feel daunting, but it’s a crucial step in building trust and transparency for your business. As digital assets become more mainstream, regulators and stakeholders expect clear, accurate reporting.  

A crypto audit examines your blockchain transactions, controls, and financial records—helping you stay compliant, manage risk, and demonstrate credibility in a space evolving faster than ever.  

What is a crypto audit? 

A crypto audit is a comprehensive security audit of your organization’s digital asset activities, controls, and records. It ensures your digital assets are accurately reported, using fair market value to reflect what those holdings would sell for on the open market at the audit date. This includes how you calculate and disclose capital gains from selling, trading, or spending crypto assets. 

It goes beyond traditional financial audits by validating not only your financial statements but also your blockchain networks and transactions, wallet ownership, and cryptocurrency security protocols.  

The goal is to confirm that your crypto holdings are accurately reported, securely managed, and compliant with evolving regulations. 

For example, if your business holds Bitcoin or other digital assets, a crypto audit will verify you actually control the wallets you report, ensure all cryptocurrency transactions are properly recorded, and assess how you value those assets on your balance sheet.  

Auditors may request you to sign a message from your wallet or perform a small test transaction to prove ownership, and they’ll review your internal controls to confirm your private keys are safeguarded. This process helps build trust with investors and regulators while identifying opportunities to strengthen your security and reporting. 

Four crypto audit types  

Like many things with this emerging technology, crypto audits are far from simple. There are four main types of crypto audits you’ll need to be prepared for. 

1. Financial audit 

A financial audit for a crypto business focuses on a systematic examination of your crypto infrastructure—verifying the ownership and valuation of digital assets, ensuring that all cryptocurrency transactions are accurately recorded and properly reflected in your financial statements.  

Auditors look for clear proof that you control the wallets listed on your balance sheet and that your revenue recognition aligns with accounting standards. 
 
Key red flag: Mismatched on-chain and off-chain records, such as discrepancies between blockchain data and your internal accounting, can raise concerns for auditors and regulators. 

2. Security audit 

A security audit examines how you manage and protect your private keys, as well as the access controls you have in place for digital assets. The goal is to confirm that only authorized personnel can access or move funds, and that your systems are resilient against internal and external threats. 
 
Key red flag: Relying on a single person for key access or approvals, a single-point signature authority, can leave your assets vulnerable to loss or fraud. 

3. Compliance audit 

A compliance audit evaluates your adherence to anti-money laundering (AML) regulations, sanctions screening (such as OFAC checks), and reporting requirements across jurisdictions. Auditors assess your processes for verifying counterparties and monitoring transactions for suspicious activity. 
 
Key red flag: Engaging in transactions with unverified counterparties or failing to screen for sanctioned addresses can expose your business to regulatory penalties and reputational risk. 

4. Smart contract audit 

A smart contract audit reviews the code and governance of your blockchain technology agreements to identify vulnerabilities, ensure proper upgrade mechanisms, and validate that contracts function as intended. This helps prevent exploits and operational disruptions. 
 
Key red flag: Lacking a tested disaster recovery plan for smart contracts or failing to address known code vulnerabilities can result in significant financial and operational losses if issues arise. 

When does a crypto audit happen? 

Most crypto audits follow a regular cadence, such as annually or at the close of a fiscal year, to align with financial reporting and compliance requirements.  

However, audits can also be triggered unexpectedly by regulatory changes, investor requests, or significant business events, including inquiries from tax authorities like the IRS. As tax enforcement around digital assets increases, businesses may face audits specifically to verify the accuracy of their crypto tax reporting. 

If your business experiences rapid growth, launches new digital asset products, or undergoes a change in leadership, you may face an unscheduled audit to address evolving risks and ensure transparency. 

It’s important to note that transparency will continue to rise in importance in this space as the Financial Accounting Standards Board’s fair value measurement requirements put it at the center stage of future audit standards. 

Top crypto audit triggers in 2025 

Certain activities increase the likelihood of a crypto audit, and tax-related issues are front and center. In 2025, key triggers include: 

• Holding more than 20% of crypto assets in non-custodial wallets can raise questions about security and ownership controls. 
• Using privacy coins or mixers, as these tools can obscure transaction histories and attract regulatory scrutiny. 
• Conducting 50 or more cryptocurrency transactions with unverified counterparties, which may signal compliance gaps or potential money laundering risks. 
• Reporting material discrepancies between your tax filings and financial statements, which often prompt deeper investigation by tax authorities. 

The AICPA’s 2025 guidance for stablecoin issuers exemplifies how standards continue to evolve, with expanded disclosure requirements for asset-backed tokens now in effect. 

Staying proactive about these triggers can help you prepare for and navigate a crypto audit with confidence. 

The crypto audit process: what to expect at every step 

A crypto audit follows a clear, structured process designed to help you demonstrate transparency, accuracy, and security. Here’s how it works: 

Planning and risk assessment 

Your audit begins with a collaborative planning session. Auditors work with you to understand your business model, map out your digital asset activities, and identify areas of higher risk—such as complex wallet structures, high cryptocurrency transaction volumes, or new product launches. This stage sets the audit’s scope and ensures the process is tailored to your unique operations. 

Data collection and documentation 

Next, you’ll be asked to provide detailed documentation. This includes wallet addresses, transaction histories, internal policies, and evidence of private key controls. You’ll need to provide detailed records of every sale, trade, or disposal of crypto, as each event may trigger a capital gain or loss that must be reported to the IRS. 

It’s the auditor’s responsibility to request access to your accounting records and any relevant smart contract code. Complete, organized records make this step smoother and help avoid delays. 

On-chain verification and testing 

Auditors use blockchain analysis tools to independently verify your reported balances and transaction activity. They confirm wallet ownership, often by requesting you to sign a message or conduct a test transaction and reconcile on-chain data with your internal records. For smart contracts, auditors review code for vulnerabilities and test for correct functionality. 

Internal control review 

Your internal processes are assessed to ensure that private keys are securely managed, access is appropriately restricted, and transaction approvals follow documented workflows. Auditors may request formal verification by observing key ceremonies or testing the effectiveness of your controls in real time. 

Reporting and recommendations 

Finally, you receive a detailed audit report. This document summarizes the audit scope, findings, and any identified risks or weaknesses. It also provides actionable recommendations to strengthen your controls and improve compliance. Sharing this report with stakeholders demonstrates your commitment to transparency and security and helps crypto investors maintain confidence. 

By understanding each stage of the crypto audit process, you can mitigate reputational damage and turn your audit into a valuable opportunity for growth and trust-building. 

How to prepare for your crypto audit 

Preparing for a crypto audit is a team effort that benefits from early action and clear coordination. Here’s how you can set your business up for success. 

Six months before your audit 

Start by bringing your finance and IT teams together to implement a transaction tagging system. This helps you clearly categorize activities, such as DeFi transactions or exchange trades, making your records easier to review.  

At the same time, work with your finance leaders to document how you’ll value illiquid tokens, ensuring your approach aligns with accounting standards and stands up to scrutiny. 

Three months before your audit 

Now’s the time to verify that you control every wallet listed on your balance sheet. Have your IT and finance teams run internal wallet verification drills, so you’re ready to prove ownership when asked.  

It’s also helpful to create a cross-department task force, including legal, technology, and finance, so everyone is aligned and can address questions quickly as they arise. 

One month before your audit 

As the audit approaches, tighten up permissions by freezing wallet access to capture a clear, historical snapshot of your holdings. Ask IT to generate automatic reconciliation reports across all blockchains your business uses. Finance should review these reports to spot and resolve any discrepancies before the audit begins. 

Preparing early and involving the right teams, including your tax professionals, can make your crypto audit smoother and more effective.  

For example: 

• When implementing a transaction tagging system or documenting your valuation methodology, ensure these practices also support accurate tax reporting.  
• When generating reconciliation reports, confirm that all taxable events are captured and match your tax filings. 

By involving the right people at each stage and following this timeline, you can approach your crypto audit with confidence and turn the process into an opportunity to strengthen your controls and build trust with your stakeholders. 

How to choose the right crypto audit partner 

Selecting the right audit partner is about more than technical skills—it’s about finding a team that understands your business, your technology, and your goals.  

Here’s what to look for as you evaluate your options.  

Deep blockchain understanding 

You want professionals who know blockchain technology and crypto assets inside and out. Look for a team with hands-on experience across protocols, consensus mechanisms, and the unique risks of DeFi, NFTs, and tokenized assets. 

Familiarity with your business model 

Every crypto business is different. Your audit team should understand the nuances of exchanges, wallets, DeFi platforms, and other digital asset operations, and be able to tailor their approach to your needs. 

Technical capabilities 

Effective audits require advanced blockchain analytics tools, cryptographic verification methods, and the ability to review smart contract code for vulnerabilities. Make sure your partner can deliver on all fronts. 

Regulatory awareness 

The regulatory landscape is evolving quickly. Choose a firm that stays current on global regulations, has experience with cross-border compliance, and can help you anticipate changes before they impact your business. 

Strong track record 

Ask about their history in the space. A strong audit partner will have a portfolio of successful projects and satisfied clients, demonstrating both reliability and trustworthiness. 

At BPM, our Blockchain and Digital Assets Group combines a deep understanding of digital assets with established audit methodologies. As one of the earlier CPA firms to commit to this industry, we bring over 11 years of experience supporting and advising clients in the crypto space. We work alongside you to navigate the complexities unique to your operations, always with a people-first approach that puts your success at the center. 

Get crypto audit-ready with BPM 

While crypto audits come with various challenges, a well-prepared crypto audit builds trust, ensures compliance, and strengthens your operations.  

If you’re ready to navigate the complexities of digital asset audits with confidence, reach out to BPM’s Blockchain and Digital Assets Group. We’re here to support your journey every step of the way. 

As your business grows and evolves, you’re likely juggling more projects than ever before. Whether you’re implementing new software, expanding into new markets, or streamlining operations, effective project management is critical to your success. But here’s the challenge: you might not have experienced project management professionals on staff, or your team members are stretched thin trying to manage projects on top of their daily responsibilities. 

If this sounds familiar, you’re not alone. Many growing companies find themselves at a crossroads where they need professional project management but aren’t ready to hire full-time staff. That’s where outsourced project management is a game-changer for your organization. 

Let’s take a look at the five best reasons you should bring in an outside project management team. 

1. Your team can focus on what they do best 

When your subject matter professionals spend their time coordinating timelines and chasing down deliverables, instead of focusing on their core competencies, everyone loses. Your accountants should be analyzing financial data, not scheduling meetings. Your operations team should be optimizing processes, not managing project communications. 

Outsourced project management allows your internal team to  concentrate on what they were hired to do (and what they do best), while experienced project professionals handle the coordination, communication, and execution of your initiatives. 

2. You avoid the hidden cost of distraction 

Consider this: when you pull your best people away from their primary functions to manage projects, you’re not just losing their project management time—you’re also losing their productivity in their areas of strength. This double impact can significantly affect your bottom line and team morale. 

3. You gain access to proven tools and methodologies 

Growing companies often lack the sophisticated project management tools and frameworks that can make the difference between project success and failure. When you outsource project management, you immediately gain access to: 

• Proven project management methodologies and best practices such as agile and waterfall project management 
• Advanced project management software and dashboards 
• Continuous improvement tools including Lean Six Sigma 
• Documentation templates and standard operating procedures 
• Risk management frameworks 
• Change management practitioners 

These tools and processes have been refined across multiple projects and industries, giving you a significant advantage without the learning curve or investment in new systems. 

4. You get objective, third-party perspective 

When you’re deeply embedded in your business operations, it can be challenging to see the forest for the trees. Internal teams often have blind spots or may be influenced by office politics, existing relationships, or “the way things have always been done.” 

An outsourced project management team brings fresh eyes to your challenges. They can: 

• Identify inefficiencies you might have overlooked 
• Make unbiased recommendations about resource allocation 
• Assess how your teams are currently structured and suggest improvements 
• Delegate tasks to the right people based on skills and availability 

This objectivity is particularly valuable when you need to make difficult decisions about project priorities or resource allocation. 

5. You can achieve better financial outcomes 

While cost savings might seem like an obvious benefit, the financial advantages of outsourced project management go much deeper than simple arithmetic. 

Direct cost benefits 

• No full-time salary and benefits expenses for project management staff 
• Flexible scaling based on project needs 
• Access to blended rates that may be lower than hiring senior-level professionals 

Indirect value creation 

The less tangible, but equally important, benefit is giving your content specialists their time back. When your team can focus on revenue-generating activities instead of project coordination, the return on investment often exceeds the cost of outsourced project management services. 

The transition process is designed for your success 

You might be wondering how the handoff actually works. The transition to outsourced project management typically involves an intensive initial phase focused on knowledge transfer. During this period, BPM will: 

• Conduct comprehensive project discovery sessions 
• Clarify project objectives and ensure they are in support of the business’ mission and long-term strategies 
• Document existing processes and workflows and analyze recommendations for improvement 
• Identify key stakeholders and communication preferences 
• Establish project governance and reporting structures 
• Prepare a comprehensive project plan for approval by key stakeholders 

While this initial phase requires significant input from your team, it’s a strategic investment. Once the knowledge transfer is complete, your internal staff can return to their daily operations while the project management team takes full ownership of execution. 

Managing change and resistance 

It’s natural for some team members to feel resistant to outsourcing project management. They might believe they can handle tasks faster or better themselves. A professional project management team understands this dynamic and works to build trust through transparent communication, consistent delivery, and respect for your company culture. 

Looking ahead: the future of project management 

The project management landscape continues to evolve, with artificial intelligence increasingly handling scheduling, work sequencing, and resource allocation. However, the human element remains irreplaceable, especially in change management and helping people adapt to new processes. 

When you partner with an outsourced project management team, you’re not just solving today’s challenges—you’re positioning your organization to leverage both technological advances and human insight as the field continues to develop. 

Is outsourced project management right for your business? 

Outsourced project management tends to work best for any companies that are: 

• In a growth stage without dedicated project management staff 
• Managing multiple initiatives simultaneously 
• Already outsourcing other business functions like payroll or accounting 
• Looking to coordinate various service providers and internal teams 

If you’re juggling multiple projects while trying to maintain daily operations, or if you find your team constantly pulled away from their core responsibilities, it might be time to consider bringing in professional project management support. 

Ready to focus on what matters most? 

At BPM, we understand the unique challenges growing businesses face when managing complex projects alongside daily operations. Our project management professionals work with companies across various industries to deliver coordinated, efficient project execution while allowing your team to focus on what they do best. 

If you’re ready to explore how outsourced project management could benefit your organization, we’d love to discuss your specific needs and challenges. Contact BPM today to learn more about our project management services and how we can help you achieve your business objectives more effectively. 

When a NetSuite implementation goes off track, businesses face more than just technical challenges—they encounter operational disruptions, financial strain and team frustration. Many organizations find themselves struggling with a system that fails to deliver on its promises despite significant investment.  

This article explores the common pitfalls of NetSuite implementations and how businesses can successfully rescue their projects with the right approach. 

Why NetSuite implementations falter 

NetSuite implementations can derail for numerous reasons, creating ripple effects throughout your organization. Understanding these challenges is the first step toward effective resolution. 

• Lack of discovery or misalignment with business goals: An implementation partner configured NetSuite using assumptions instead of digging into how the client actually ran their operations. The result? Core workflows like order-to-cash didn’t match the company’s reality—and users immediately reverted to spreadsheets. 
• Over-engineering from the start: Instead of a phased rollout, a previous partner built an overly complex system with customizations for future-state processes the business wasn’t ready for. This delayed go-live and overwhelmed users who were never trained on basics. 
• Underestimating or poorly designing complex integrations: Integration failures between NetSuite and other business systems create data silos and force teams to rely on manual workarounds. 
• Insufficient user training: Without adequate training time, you see reduced productivity and system adoption, while performance and usability issues impact daily operations. 
• “Set it and forget it” mentality: An implementation partner handed over the NetSuite environment without proper training, dedicated support after go-live, or a clear path forward. Without guidance, you are left to solve problems and identify future optimization opportunities on your own 
• As businesses evolve, other problems emerge: Systems that can’t handle changing operations, missing functionality creating gaps in core business processes and inability to support new business lines or acquisitions. 

5 warning signs your NetSuite implementation needs rescue 

Recognizing when your implementation requires intervention can save valuable time and resources. Watch for these indicators that signal the need for a NetSuite rescue: 

1. Your team works around the system: If employees are back in Excel or logging into legacy systems “just in case,” it’s a sign the implementation didn’t address real-world needs. 

2. You’re still not live after 6–12 months: Long delays signal project misalignment, scope creep, or a lack of executive ownership—all of which can be corrected with the right partner. 

3. Reporting doesn’t match business reality: If your CFO or department leads can’t trust the reports coming out of NetSuite, there’s likely an issue with configuration, data structure, or training. 

4. Your vendor is unresponsive or keeps changing consultants: Partners who can’t explain decisions, provide context, or retain continuity are not invested in your long-term success. 

5. No one “owns” the system internally: When no champion feels confident navigating or administering NetSuite, it’s a sign of poor enablement and a lack of strategic guidance from the implementation partner. 

If you’re seeing these signs, you’re not alone—we’ve helped countless companies navigate these exact challenges and get back on track fast. 

Root causes of implementation challenges 

Identifying the root causes helps address problems at their source rather than merely treating symptoms: 

Poor implementation planning 

Poor initial planning without clear objectives and defined workflows creates a shaky foundation for implementation. When users struggle to adapt due to inadequate training and support, adoption suffers dramatically.  

Data migration issues 

Data migration issues resulting in inconsistent or incomplete data lead to operational disruptions that undermine trust in the system. Over-customization often complicates system functionality and future maintenance, while compatibility issues with existing systems hinder overall performance. 

Key components of successful NetSuite implementation rescue 

Rescuing a troubled NetSuite implementation requires a structured approach that addresses both technical and organizational aspects: 

• A reality-based diagnostic—not blame: We assess what’s working, what’s not, and what needs to change—without pointing fingers. The goal is to stabilize your system quickly, then move toward optimization. 
• Business-first, not system-first approach: We realign NetSuite to your actual operations and priorities, whether that’s managing multi-entity reporting, improving inventory visibility, or supporting a growing sales team. 
• Actionable roadmap with quick wins and long-term goals: Rescues aren’t all-or-nothing. We’ll outline immediate steps that create impact fast—while building a sustainable system that scales with your business. 
• Hands-on training and change adoption: Fixing the system is only part of it—our team enables your team to take ownership with tailored user training and clean documentation. 
• Ongoing partnership, not a one-time fix: We don’t disappear after go-live. BPM becomes your go-to advisor for evolving NetSuite as your business grows. 

A successful rescue transforms NetSuite from a business challenge into a strategic advantage, setting the foundation for improved efficiency and data-driven decision making that supports organizational growth. 

Benefits of professional NetSuite rescue services 

Investing in professional NetSuite rescue services delivers significant advantages: 

• Avoiding wasted expenses from inefficient implementations that drain resources and create unnecessary complications. 
• Saving considerable costs over time through streamlined processes and elimination of redundant workflows. 
• Minimizing operational downtime through rapid diagnosis and resolution of critical system issues. 
• Optimizing resources by ensuring full utilization of system capabilities and unlocking valuable features. 
• Maximizing the return on your NetSuite investment by aligning the system with your business objectives. 

Partner with BPM: Your NetSuite rescue specialists 

When your NetSuite implementation requires rescue, partnering with BPM provides access to a team with deep technical knowledge and practical experience in recovering troubled projects. We’ve helped companies in manufacturing, SaaS, private equity, and many other industries rescue their implementations quickly, without starting over completely. Our consultants bring not only NetSuite-specific skills but also business process understanding that helps to ensure your rescued system aligns with your organization’s actual needs. 

Don’t settle for a half-working system. Let BPM turn your NetSuite investment into a growth engine. Contact us today to discuss your specific challenges and a rescue strategy tailored to your business requirements. 

The commercial real estate landscape is undergoing its most dramatic shift in decades. For the first time on record, the amount of office space being demolished or converted to other uses will significantly outpace new office construction in 2025. This unprecedented reversal signals a fundamental change in how we think about commercial real estate—and what it means for your business strategy. 

If you’re a property owner, developer, or investor trying to navigate this new reality, understanding these market dynamics has never been more critical to your financial success. 

The numbers tell a compelling story 

The data from CBRE’s latest research reveals just how dramatically the market has shifted: 

• More than 23 million square feet of office space across 58 markets is scheduled for demolition or conversion in 2025  
• Only 12.7 million square feet of new office space will be completed this year  
• Compare this to 2019, when nearly 60 million square feet of new office space came online while less than 10 million square feet was repurposed 

This represents a complete reversal from pre-pandemic trends, when new construction consistently outpaced conversions and demolitions combined. 

Why conversions are gaining momentum 

Rising apartment rents make projects financially viable 

The economics of office-to-residential conversions have fundamentally changed. What didn’t make financial sense five years ago may now be a profitable venture, thanks to steadily increasing apartment rents across many markets. This shift in rental pricing has brought previously unviable conversion projects within reach of positive returns. 

Local governments are removing barriers 

Cities across the country are actively encouraging these transformations through policy changes: 

• Washington, D.C.’s “Office to Anything” program streamlines the conversion process  
• Manhattan’s “City of Yes for Housing Opportunity” zoning reform targets underutilized buildings in Midtown  
• Chicago has introduced new legislation and incentives for conversion projects 
• San Francisco recently passed legislation creating a downtown revitalization financing district that will use property tax increment financing to promote the conversion of vacant office buildings into residential housing. The program could convert approximately 50 downtown properties into over 4,000 housing units. 

These policy shifts recognize that converting underused office buildings can address housing shortages while revitalizing downtown areas. 

Which buildings make the best conversion candidates 

Not all office buildings are created equal when it comes to conversion potential. The age and design of your property significantly impact its viability: 

Pre-1970s buildings often excel as conversion targets 

Older office buildings frequently offer distinctive architectural features and floor plans that translate well to residential use. These properties represent 65% of current conversion projects, despite making up a smaller portion of the overall office inventory. 

1970s and 1980s buildings face greater challenges 

Properties from this era typically feature large floor plates that don’t easily accommodate multifamily layouts. While these buildings represent more than half of all demolitions, they account for only 35% of conversions. 

Geographic hotspots and market variations 

Manhattan and Washington, D.C., dominate conversion activity with 10.3 million and 9.2 million square feet respectively in their development pipelines. These markets benefit from strong rental demand and supportive local policies. 

Smaller markets showing outsized activity 

Cleveland stands out among secondary markets, with 8.4% of its office inventory either undergoing or planned for conversion—the highest percentage of any city in the study. The city’s high construction costs, low office rents, and limited land availability have historically favored conversion projects. 

Understanding conversion trends by property type 

Most office conversions target the residential market: 

• 76% of conversions by square footage become multifamily housing  
• 3% convert to life science facilities (down from earlier post-pandemic highs)  
• Small percentages become hotels or industrial space 

This residential focus reflects both market demand for urban housing and the practical considerations of adapting office floor plans for different uses. 

Tax and financial implications you need to consider 

These market shifts create complex tax and accounting considerations that require careful planning: 

Depreciation and cost recovery strategies 

Converting an office building involves significant capital expenditures that must be properly categorized and depreciated. Understanding the difference between improvements that extend useful life versus those that constitute new property can substantially impact your tax position. 

Section 1031 exchange opportunities 

The changing office market may affect your ability to identify suitable replacement properties in like-kind exchanges. Planning becomes even more critical when traditional office-to-office exchanges may not align with market realities. 

Opportunity zone considerations 

Many office buildings targeted for conversion sit within qualified opportunity zones, potentially offering significant tax advantages for the right investment structure. 

Strategic planning for property owners and investors 

Evaluate your portfolio proactively 

Rather than waiting for market forces to dictate your options, conduct a thorough analysis of your office holdings. Consider factors like: 

• Building age and architectural features  
• Local zoning and conversion policies 
• Rental market conditions for alternative uses  
• Capital requirements for conversion versus continued office use 

Consider timing and market cycles 

While conversion activity is accelerating, successful projects require careful timing. Market conditions, construction costs, and regulatory environments all influence project viability. 

Plan for the long term 

This office transformation isn’t a temporary blip—it represents a structural shift in how we use urban space. Your real estate strategy should account for these changing dynamics over the coming decade. 

What this means for your business moving forward 

The office conversion trend reflects broader changes in work patterns, urban living preferences, and municipal planning priorities. As a business owner or investor, staying ahead of these shifts positions you to capitalize on opportunities while avoiding potential pitfalls. 

Whether you’re considering converting existing properties, investing in conversion projects, or simply trying to understand how these trends affect your market, the financial and tax implications require careful analysis and strategic planning. 

At BPM, we help clients navigate the complex tax, financial, and strategic considerations that come with major real estate decisions. Our team understands the nuances of real estate taxation, entity structuring, and investment analysis that make the difference between a successful project and a costly mistake. 

Ready to explore how these market trends might affect your real estate strategy? Contact BPM today to discuss your specific situation and discover how we can help you make informed decisions in this evolving market. 

Many nonprofits find themselves overwhelmed by the unique reporting requirements and presentation of nonprofit financial statements that are specific to their industry. From deciphering the statement of financial position to tracking program expenses and donor restrictions, nonprofit leaders often face a steep learning curve.  

Without clear, accurate financial information, it’s difficult to make informed decisions, demonstrate accountability, or plan for the future. Today, we’ll break down the essentials of nonprofit financial statements—what they are, why they matter, and how they reflect your organization’s financial situation.  

Why financial statements matter for nonprofits 

Nonprofit organizations operate in a unique environment where financial transparency and accountability are essential for sustaining your mission and maintaining trust with the community you serve and your donors. Tax-exempt organizations must follow specific financial reporting requirements that reflect their responsibility to donors, grantmakers, and regulatory agencies. 

Building trust and securing funding 

Financial statements show how your organization manages its resources, how funds are allocated to program services, administrative costs, and fundraising expenses, and how effectively you are advancing your mission.  

Donors, grantors, and board members rely on these statements to evaluate your organization’s financial health and stewardship. Transparent, accurate reporting builds credibility, attracts new funding, and reassures existing supporters that their contributions are being used responsibly. 

Demonstrating accountability and supporting informed decisions 

Beyond regulatory compliance, your financial statements are powerful tools for internal decision-making. They provide critical data that helps leadership and board members assess the organization’s financial position, monitor program expenses, and plan for the future.  

Actionable financial information allows you to make data-driven decisions—whether it’s expanding a program, adjusting fundraising strategies, or managing cash flow to ensure sustainability. 

The four essential nonprofit financial statements 

Nonprofit organizations rely on four core financial statements to tell their financial story, demonstrate accountability, and support informed decision-making.  

1. Statement of financial position 

The statement of financial position – comparable to a balance sheet – provides a snapshot of your nonprofit’s financial situation at a specific point in time.  

It details what your organization owns (assets), what it owes (liabilities), and the net assets that remain after obligations are met.  

Key components include: 

• Assets: Cash, investments, accounts receivable, prepaid expenses, property, and equipment 
• Liabilities: Accounts payable, accrued expenses, loans, and other obligations 
• Net assets: The difference between assets and liabilities, categorized by donor restrictions (with or without donor restrictions) 

This statement helps you and your board assess liquidity, understand what resources are available, and identify any potential financial risks. A common misconception is that a positive net asset number always means financial strength; in reality, the composition and liquidity of those assets matter just as much. 

2. Statement of activities 

The statement of activities – comparable to an income statement – shows how your organization’s net assets change over a fiscal year. It highlights all sources of revenue—such as donations, grants, program fees, and investment income—alongside expenses, including program services, administrative costs, and fundraising expenses.  

Key elements include: 

• Revenue: Contributions, grants, program fees, investment, special events, and other income 
• Expenses: Program services expenses, management and general (administrative costs), fundraising expenses 
• Change in net assets: The surplus or deficit for the period 

This statement reveals whether your organization is operating within its means and advancing its mission efficiently.  

Nonprofit leaders sometimes assume that “breaking even” is the goal, but building reserves for future stability is also a sign of good financial management. 

3. Statement of cash flows 

The statement of cash flows tracks the movement of cash in and out of your organization, broken down by operating, investing, and financing activities.  

It shows how cash is generated and used, helping you monitor liquidity and plan for upcoming obligations.  

Key sections include: 

• Operating activities: Cash received from donations, grants, and program fees; cash paid for expenses like employee salaries, office supplies, and program costs 
• Investing activities: Cash used for or generated from the purchase or sale of assets, such as equipment or investments 
• Financing activities: Cash flows related to loans, interest paid, or other financing arrangements 

This statement is crucial for understanding whether your organization can meet its short-term commitments, even if the income statement looks healthy.  

A frequent question is why a nonprofit with a “surplus” on the statement of activities might still face cash flow challenges—timing differences and non-cash revenue can explain this disconnect. 

4. Statement of functional expenses 

Unique to nonprofit financial reporting, the statement of functional expenses breaks down total expenses by both their nature (such as salaries, rent, supplies) and function (program services, management and general, fundraising). This level of detail is vital for transparency and compliance. 

Key components include: 

• Program services expenses: Costs directly related to carrying out your mission and/or providing your services and programs 
• Management and general: Administrative costs necessary for operations 
• Fundraising expenses: Costs incurred to raise contributions 

This statement helps stakeholders see how efficiently resources are allocated to mission-driven activities versus overhead.  

Nonprofit leaders sometimes worry that high administrative costs will deter donors, but clear reporting and context can help explain necessary investments in infrastructure and capacity. 

Understanding these four financial statements gives your organization the tools to communicate financial health, demonstrate stewardship, and make informed decisions for the future.  

If you find these reports overwhelming or struggle to keep them accurate and timely, you’re not alone—many nonprofits turn to outsourced accounting solutions to ensure their financial information is reliable and actionable. 

Get accurate nonprofit financial statements with BPM 

Understanding nonprofit financial statements is essential for building trust, maintaining compliance, and driving your organization’s mission forward. Clear, accurate financial reporting doesn’t just satisfy regulatory requirements—it empowers your leadership, reassures your donors, and provides a roadmap for sustainable growth. 

Ready to strengthen your nonprofit’s financial health and unlock greater impact? Connect with BPM today for a conversation about how our people-first approach to nonprofit accounting can help your organization thrive. 

Companies across industries face pressure to adapt, evolve, and optimize their operations. Market volatility, economic uncertainty, and changing consumer demands force organizations to reconsider their current structures and strategies. Corporate restructuring is a powerful tool that enables businesses to realign their resources, streamline operations, and position themselves for sustainable growth. 

You might find yourself questioning whether your current organizational structure serves your business objectives effectively. Perhaps your company struggles with declining profitability, operational inefficiencies, or competitive disadvantages that threaten long-term viability. Corporate restructuring offers a pathway to address these challenges systematically and strategically.  

This article will explore the fundamental principles of corporate restructuring, examine key strategies available to your organization and provide actionable insights to guide your transformation journey. 

Understanding corporate restructuring fundamentals 

Corporate restructuring involves comprehensive changes to your company’s organizational structure, financial arrangements, or operational processes. This strategic initiative goes beyond simple cost-cutting measures to create fundamental improvements in how your business operates and competes in the marketplace. 

Your restructuring efforts typically address three core areas:  

• Financial optimization: Focusing on debt management, capital structure improvements and cash flow optimization 
• Operational efficiency: Targeting workflow improvements, resource allocation, and organizational design. 
• Strategic realignment: involving portfolio management, market positioning and competitive advantage development. 

Financial restructuring strategies 

Financial restructuring addresses your company’s capital structure, debt obligations and funding mechanisms. Debt restructuring involves renegotiating payment terms, interest rates, or principal amounts with creditors. This approach provides breathing room for struggling companies while maintaining operational continuity. 

Equity restructuring modifies ownership structures, share distributions, or governance arrangements. Companies may issue new shares, repurchase existing stock or restructure ownership percentages to optimize capital efficiency. Asset restructuring involves: 

• Divesting non-core assets 
• Acquiring strategic resources 
• Reconfiguring asset portfolios to improve returns 

Operational restructuring approaches 

Operational restructuring focuses on improving your company’s internal processes, organizational design, and resource allocation. Workforce restructuring may involve layoffs, retraining programs, or role redefinition to optimize human capital. Process reengineering eliminates inefficiencies, automates routine tasks, and streamlines workflows. 

Technology integration plays a crucial role in operational transformation. Digital platforms, automation tools and data analytics systems can significantly improve productivity and decision-making capabilities. Supply chain optimization reduces costs, improves quality, and enhances customer satisfaction through better vendor relationships and logistics management. 

Strategic restructuring options 

Strategic restructuring aligns your business portfolio with market opportunities and competitive advantages. Divestiture involves selling non-core business units or assets to focus resources on primary revenue drivers. This approach generates cash while allowing management to concentrate on high-performing segments. 

Mergers and acquisitions enable rapid growth, market expansion, and synergy realization. Strategic partnerships create collaborative advantages without full integration requirements. Joint ventures allow companies to share risks and resources while pursuing new market opportunities or technological developments. 

Key drivers behind restructuring decisions 

Several factors typically prompt organizations to pursue corporate restructuring initiatives: 

• Economic downturns often force companies to reassess their operations and eliminate inefficiencies.  
• Technological disruption may require significant organizational changes to remain competitive.   
• Market consolidation through mergers and acquisitions creates opportunities for operational synergies and cost reduction. 

Your company might also consider restructuring to address specific performance issues. Declining market share, reduced profitability, or operational bottlenecks signal the need for structural changes. Regulatory changes, industry shifts, or new competitive threats may also necessitate comprehensive organizational transformation. 

Measuring corporate restructuring success 

Effective restructuring initiatives produce measurable improvements in financial performance, operational efficiency and strategic positioning. Revenue growth, profitability increases, and improved cash flow indicate successful financial restructuring. Operational metrics such as productivity gains, cost reductions, and quality improvements demonstrate process optimization success. 

Market performance indicators include:  

• Increased market share 
• Improved customer satisfaction 
• Enhanced competitive positioning 

Additional metrics, like employee engagement scores, retention rates, and productivity measures, can also reflect successful organizational transformation. 

Working with BPM for corporate restructuring 

Corporate restructuring is one of the most challenging and consequential decisions your organization will face. The complexity of modern business environments demands sophisticated approaches that balance immediate needs with long-term strategic objectives. BPM brings decades of experience helping companies navigate these critical transformations successfully. 

Our team understands that every restructuring situation requires customized solutions tailored to your specific circumstances, industry dynamics, and organizational goals. We work closely with your leadership team to develop comprehensive strategies that optimize financial performance while maintaining operational continuity. To schedule a consultation and discover how our restructuring services can position your company for sustained success in an increasingly competitive marketplace, contact us.  

As your business scales from startup to well-funded growth stage, you’re navigating a critical transition filled with opportunity and financial complexity.  

What worked during your early days—spreadsheet-based planning, founder-led financial decisions, and reactive cash management—can quickly become inadequate as investor expectations rise, and operational complexity grows. 

Without strategic financial planning, growing companies often face unrealized revenue potential, funding challenges, and limited visibility into performance drivers. These blind spots don’t just slow growth—they can derail it.  

Let’s take a look at the most common mistakes we see high-growth businesses make (and how you can avoid them).  

Key financial challenges for scaling businesses 

The leap from early-stage startup to a well-funded growth company introduces financial complexities that many founders aren’t prepared to navigate.  

As your business scales, it’s not enough to tracking only basic expenses and revenue—you’re managing multiple revenue streams, complex operational costs, and increasingly sophisticated stakeholder expectations. You’ll likely face: 

• Complex financial operations: As you add layers of management, processes, and infrastructure to support expansion, you’ll expose your business to inefficiencies and financial blind spots, like inadequate cash flow planning, data silos, and disparate systems.   
• Larger funding requirements and investor expectations: To grow you need funding—but how much should you raise? Many startups struggle with accurate financial forecasting for fundraising rounds, which doesn’t just create a financial problem, it also could cause dwindling investor confidence.  
• Managing goals for scale with profitability needs: Perhaps the most difficult balancing act is maintaining healthy cash flow while investing in growth. Many businesses face insufficient or irregular cash flow when expenses outpace incoming revenue, leading to missed opportunities or operational constraints.  

Finding the right pace for scaling—fast enough to capture market share but controlled enough to maintain financial stability—requires sophisticated financial planning that many growing businesses lack. 

For startups transitioning to growth stage, FP&A capabilities fill the critical need to model various financial scenarios, stress-test assumptions, and develop contingency plans. This approach reduces reliance on intuition alone, significantly enhancing the quality of strategic choices through data-driven insights and reducing the likelihood of common mistakes.  

5 financial planning mistakes growing businesses make 

As your business scales from startup to growth stage, financial planning becomes increasingly complex—and the margin for error shrinks dramatically. The financial missteps that were manageable in your early days can become big threats as your operations expand and investor expectations intensify. 

Mistake 1: Ignore data-driven decision making 

Growing businesses often rely on instincts and intuition long after they’ve outgrown this approach. In fact, 58% of companies base at least half of their regular business decisions on gut feel rather than data and information. This creates a significant competitive disadvantage, as a Harvard Business Review survey found that data-driven organizations are 3x more likely to make better decisions.  

For example, a rapidly growing e-commerce tech company might rely on intuition about inventory levels rather than implementing proper demand planning and forecasting. This approach often leads to costly overstock levels or missed sales opportunities due to stockouts.  

The disconnect between available data and decision-making creates blind spots. Many growing businesses track too many metrics (sometimes 30 or more) without understanding which ones truly drive performance, diluting focus from the two or three metrics that actually impact financial outcomes. 

How FP&A helps 

Instead of falling into these traps, scaling businesses should implement FP&A processes that transform raw financial data into actionable insights. This means moving beyond basic accounting to develop forward-looking analyses that connect financial data to strategic decision-making. 

Mistake 2: misaligned budgets with growth goals 

Growing businesses often struggle to align their budgets with their long-term strategic goals, leading to inefficient resource allocation and missed opportunities. Failing to do so can result in overspending or underinvestment in critical areas. This misalignment often occurs when companies focus solely on short-term financial targets without considering their broader strategic objectives. 

For instance, a software company aiming for rapid market expansion might allocate a disproportionate amount of its budget to sales and marketing, neglecting crucial investments in product development or customer support. This short-sighted approach could lead to customer churn and hinder long-term growth, despite initial revenue gains. 

How FP&A helps 

FP&A support can help businesses build annual budgets tailored to organizational objectives, ensuring every dollar supports strategic priorities. This includes (short and long term) goal setting, corresponding KPIs, resource alignment, and regular review sessions for ongoing alignment.  

Mistake 3: lack of clear KPIs and performance monitoring 

Yes, metrics matter. But not all metrics are created equally. Growing businesses often track too many metrics or focus on vanity metrics that don’t provide actionable insights, hindering decision-making and losing sight of the numbers that actually impact their bottom line.  

For example, a subscription-based software company might focus heavily on new customer acquisition numbers while neglecting to monitor customer lifetime value or churn rates.  

Another common issue is the failure to establish leading indicators that can predict future performance. Many businesses rely solely on lagging indicators (like quarterly revenue) that tell you what has already happened rather than what’s likely to happen next. 

How FP&A helps 

FP&A teams develop customized KPIs and frameworks for proactive performance monitoring that align with your specific business model and growth objectives. With these tailored metrics in place, leadership can quickly identify underperforming areas and make data-driven decisions to address issues before they impact financial results. The right KPI framework transforms financial data from backward-looking reports into forward-looking strategic tools. 

Mistake 4: Underestimating the importance of stakeholder communication 

Poor articulation of value can hinder funding opportunities and stakeholder trust. When businesses fail to effectively communicate their financial story and growth trajectory, they risk losing investor confidence and limiting access to capital. 

Many growing companies struggle to translate complex financial data into compelling narratives that resonate with different stakeholder groups. This communication gap becomes particularly problematic during fundraising rounds, when potential investors need clear articulation of how their capital will drive growth and generate returns. 

For example, a promising technology startup might have strong underlying financials but fail to secure additional funding because they can’t effectively evidence their unit economics, customer acquisition costs, or path to profitability in terms investors can easily understand and evaluate. 

How FP&A helps 

Strong FP&A processes help businesses translate financial data into strategic stories that demonstrate value creation and future potential. This approach transforms financial reporting from a compliance exercise into a powerful communication tool that builds stakeholder confidence. 

Mistake 5: Neglecting technology integration 

Under-powered systems can limit visibility into financial operations and slow decision-making processes. Many growing businesses operate with disconnected financial tools—often spreadsheets and basic start-up accounting software—that don’t communicate with each other or provide real-time insights. 

This technology gap creates several challenges: 

• Manual data consolidation that consumes valuable time and introduces risk 
• Delayed reporting that provides insights too late to inform timely decisions 
• Limited scenario planning capabilities when quick strategic pivots are needed
• Inability to analyze data at the granular level needed for optimization 

For instance, when finance teams rely on disconnected systems, they often spend excessive time manually reconciling data from multiple sources, leading to reporting delays and potential errors. These delays mean leadership receives critical financial insights days or weeks after they could have acted on them, creating missed opportunities and reactive rather than proactive decision-making. 

How FP&A helps: 

FP&A teams can help you integrate cutting-edge technology solutions for streamlined financial management and enhanced forecasting accuracy. Tools like NetSuite enable finance teams to create dynamic dashboards that visualize complex data in consumable form. These platforms allow leadership to monitor performance in real-time, drill down into problem areas, and identify opportunities that might otherwise remain hidden in spreadsheets. 

Realize your business’s growth potential with BPM’s FP&A Services  

Don’t let financial planning mistakes derail your growth trajectory. BPM’s collaborative FP&A approach transforms your operational data into strategic assets that illuminate growth pathways, validate strategies, and build compelling cases for investment. 

Ready to turn your financial data into a roadmap for success? Contact BPM’s FP&A team today to start building a future-ready financial strategy tailored to your growth ambitions.