The NetSuite Accountant

Biotech Comparables | ASC 606 Transition Method

Paul Giese Oct 9, 2018 6:17:00 AM
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Publicly-traded biotech companies were required to adopt ASC 606 for their revenue recognition in their 2018 financial statements. Private biotech company companies must adopt ASC 606 starting in 2019. As part of the adoption process, companies must decide between two transition methods: the modified-retrospective method or the full-retrospective method.

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Cloud Accounting Podcast | Technology for Strategic Accountants

Paul Giese Oct 8, 2018 5:30:00 AM
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I recently was interviewed by Blake Oliver, co-host of the Cloud Accounting Podcast, on how ASC606 has impacted biotech revenue recognition and how intheBlk's tool can ease the pain of maintaining this data in spreadsheets. Blake is an accountant who specializes in cloud technology and was named a 40 under 40 by CPA Practice Advisor.

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Understanding changes to your collaboration revenue under ASC 606

Paul Giese Aug 13, 2018 5:21:00 AM
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ASC 606 has made understanding revenue recognition patterns more complicated. Having an understanding of the model economics will help explain current period revenue and predict future revenue patterns. Below are the four drivers that impact how revenue is recognized over the life of a proportional performance model:

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Setting up a biotech chart of accounts

Paul Giese Aug 8, 2018 6:18:00 AM
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One of the first accounting decisions made by early-stage biotech is how the chart of accounts is structured. The chart of accounts is critical for producing meaningful financial statements - a balance sheet, income statement, and statement of cash flows. Setting up a correct chart of accounts will provide useful reports to internal and external stakeholders.

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Three accounting close considerations post-ASC606 adoption

Paul Giese Jul 30, 2018 5:55:00 AM
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A smooth accounting close is critical to producing financial statements efficiently and effectively. Public companies who have adopted ASC606 for revenue recognition have already felt the impact of the new data requirements on their close process. Here are three close areas that the new revenue standard will impact:

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5 Resources for Recognizing Biotech Collaboration Revenue

Paul Giese Jun 25, 2018 5:30:00 AM
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Interpreting the revenue recognition accounting guidance for your biotech collaboration is challenging if you aren't a technical accounting guru. Thankfully, there are great resources available online to apply the standard to your situation. Below, I discuss five resources to get you up to speed:

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Build better financial reports in Excel

Paul Giese Jun 22, 2018 5:00:00 AM
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Excel is a powerful tool. Almost every small company uses Excel to track budgets, forecasts and long range plans. But, Excel files can quickly get out of hand if not planned appropriately. I've heard that time spent in Excel should 80% planning and 20% execution, especially if the file will be used frequently in the future. Below, I discuss a few tips on how to maximize efficiency while avoiding complexity in your Excel spreadsheets.

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What is a Long Range Plan, Budget and Forecast?

Paul Giese Jun 21, 2018 5:00:00 AM
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You might think that a long-range plan (LRP), budget, and forecast are interchangeable. The differences were hazy to me until I started working in a financial planning and analysis (FP&A) role. Below, I discuss how each of these tools ensures financial and strategic success.

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Biotech IPO prep - the reverse stock split

Paul Giese Jun 20, 2018 2:00:00 PM
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The biotech IPO market is strong, with over 20 biotech IPOs announced this year through May 2018. If your company is considering an IPO, an enormous amount of preparation is needed for the successful execution of this transaction. One aspect to consider is executing the impact of the reverse stock split disclosed throughout the S-1 document. The reverse stock split is necessary to price an IPO in the $13-$17 price range typical of early stage biotech IPOs.

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Long range planning and the biotech pitchdeck

Paul Giese Jun 19, 2018 6:37:25 PM
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Bruce Booth, a partner at Atlas Ventures, has a great article for biotech entrepreneurs preparing a pitch deck. Tip 7 addresses preparing a long range plan with likely liquidity paths for potential investors and shareholders. Below I comment on how intheBlk's Long Range Planning (LRP tool) can help you prepare this portion of your pitch deck:

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