Merge the precision of professional accounting with the simplicity your team deserves. Automated reconciliations, consolidated reporting, and full-cycle payroll — unified.
Born in a CPA firm, designed for the real world. PHAROS is the all-in-one ERP that closes the gap between accounting rigor and operational simplicity.
Built by accountants who were tired of the tools available to them
After years of patching together QuickBooks, spreadsheets, payroll processors, and HR systems, our founding team — CPAs and former Big 4 auditors — set out to build the system they always wished existed.
PHAROS brings together the accounting intelligence that professionals demand with a user experience that your entire team can navigate confidently. No accounting degree required.
Our multi-entity consolidation engine handles GAAP-compliant equity method, proportional, and full subsidiary consolidations — something no other small business ERP offers out of the box.
12k+
Active Businesses
$4.2B
Payroll Processed
99.97%
Uptime SLA
4.9★
Average Rating
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Simple, Transparent Pricing
Start for free forever. Upgrade when you need payroll, automation, or multi-entity consolidation.
Starter
$0 / month
Core accounting and invoicing for individuals and small operations.
Have a question about PHAROS? Our team of accountants and engineers is ready to help.
We'd love to hear from you
Whether you have questions about pricing, need help with multi-entity setup, or want a personalized demo — reach out and we'll respond within a few hours.
📧
Emailhello@pharos.io
📞
Phone+1 (800) 747-6700
📍
HeadquartersMiami, FL 33101
🕐
Support HoursMon–Fri, 8am–7pm ET
Send us a message
PHAROS
Create your account
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Account
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Company
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Starter
Free forever
FREE
Growth
$29 / month
POPULAR
Enterprise
$89 / month
ENTERPRISE
Starter — Core accounting, unlimited invoices, financial reports, and 1 bank connection. No credit card required.
🎉 No payment needed! Your Starter plan is completely free. Start using PHAROS right away.
🔒 Payments are processed securely via Stripe. PHAROS does not store your card details.
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My Profile
General
Consolidation
Billing & Plan
Invoicing
Payments
Users & Roles
Integrations
Security
Audit Trail
Account Mapping
Email
Out of Office
Signup Codes
Delete Firms
Access Review
Sidebar
My Profile
Update your login email, display name, and password.
Change Password
Leave blank to keep your current password.
General Settings
Manage your company profile and preferences.
Consolidation Settings
Control how this entity participates in consolidated reporting for parent accounts.
Allow Consolidated Access
When enabled, parent accounts with your consolidation code can pull this entity's financial data into their consolidated statements.
Your Consolidation Code
—
Share this code with any parent entity to grant them consolidation access to your data.
Require Approval for New Consolidations
You will receive a notification and must approve before a new parent entity can access your data.
Include in Intercompany Eliminations
Intercompany transactions between this entity and the parent will be flagged for elimination during consolidation.
Is Consolidated Entity
This account is a parent entity that consolidates data from other companies. Enable to access the Equity module.
Add Entity by Code
Request the consolidation code from the entity's administrator. Once entered, they will be added to your Equity page.
Billing & Plan
Manage your subscription, payment method, and billing history.
Current Plan
Growth Plan
$29 / month · Renews May 1, 2025
Payment Method
💳
Visa ending in 4242
Expires 09/2027
Users & Roles
Manage team members and their permission levels. Only a firm Admin can change roles for this business.
Name
Email
Role
Status
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Roles & internal controls
Basic separation of duties: whoever posts entries should not be the one who approves them. Preparers/Associates post; Reviewers/Managers approve.
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Integrations
Connect third-party services to PHAROS. Settings are saved per user.
📅
Google Tasks
Sync your PHAROS tasks to your personal Google Tasks list
✓ Connected
Setup (one time): Go to
Google Cloud Console → APIs → Credentials,
create an OAuth 2.0 Client ID (Web application type),
add as an Authorized redirect URI,
and as an Authorized JavaScript origin.
No client secret needed — we use PKCE.
🔌
More integrations coming soon
Stripe, Plaid, QuickBooks, and more
Invoice Numbering
Choose how new invoice numbers are generated.
Your next invoice will be
—
Set Number digits to 0 for no leading zeros (1, 2, 3…), or e.g. 4 for 0001, 0002. The next number continues from your highest existing invoice.
Invoice Templates
Customize how your invoices look, save multiple templates, and pick one when creating an invoice.
Branding
Show sections
Line-item columns
Custom text
Live preview
Payments
Set up how customers pay invoices. When you send an invoice, the email includes a secure payment link; opening it marks the invoice Acknowledged and lets the customer choose a method.
Card & ACH (Stripe)
Adds the processing fee to what the customer pays so you net the full invoice — card: 3% + $0.30, ACH: 0.8% capped at $5.
Venmo & Zelle
Payment confirmation
Sent once per invoice at month-end close (so toggling an invoice paid/unpaid while assigning payments won't spam anyone). When off, no confirmation email is sent and the "you'll receive a confirmation" line is hidden on the payment page.
Leave a method blank to hide it on the payment page. Customers paying by Venmo/Zelle confirm "I've sent payment," which flags the invoice for you to verify and mark paid.
Security
Two-factor authentication (2FA) for your account.
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Audit Trail
Every change is recorded with who did it and when. Admin only.
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Email
Every email account in one place — outgoing mail plus each incoming inbox. Each is independent and tied to its own purpose.
✉️ Outgoing email (SMTP)
Sends your invoices, receipts, and notices from your own address.
Gmail:smtp.gmail.com port 587 + an
App Password (needs 2FA).
Incoming inboxes
📥 Bank statements
A dedicated mailbox that receives your bank statements — pull them into Bank Reconciliation. Keep this separate from your bills inbox.
📥 AP bills / vendor invoices
A mailbox that receives vendor bills — new bills surface under Bills → Check Email.
📥 Receipts
Email or forward receipts here (photos or PDFs) to save them now and attach them to the right transaction later — from Transactions → 📎 Receipts to attach.
📥 Accounting updates / newsletters
Inboxes & RSS feeds that auto-pull FASB / GASB / IRS / IFRS updates into your review queue. The review queue itself is in Out of Office.
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📥 Out-of-Office mailbox
The mailbox the auto-responder watches. Presence, reply wording, and the AI drafter are in Out of Office.
Account Mapping
Assign which COA accounts PHAROS uses for system-generated journal entries. Changes take effect on new transactions.
These mappings control the automatic double-entry postings. For example, when an invoice is created, PHAROS debits the AR account and credits the Accrued Revenue account below.
System Event
Account Assignment
Accounts Receivable
DR when invoice created. CR when payment received.
Unbilled / Accrued Revenue (asset)
DR when work is completed (revenue recognized). CR when the customer is invoiced.
Unearned Revenue (liability)
CR when a customer pays before you've invoiced/earned it (a deposit). DR when you later invoice & recognize the revenue.
Default Revenue Account
CR when payment applied (if line item has no specific account).
Default Sales Discounts Account
Where invoice discount lines post. Leave blank to net discounts against the line's revenue account.
Default Cash Account
DR when bank payment received (Plaid transactions).
Accounts Payable
CR when bill created. DR when bill payment made.
Suspense / Clearing (asset)
Holding account for transactions that haven't been categorized yet. New uncategorized transactions land here and appear in To-Do → Uncategorized.
Stripe Clearing (asset)
Wash account for Stripe payouts. The net deposit lands here, then draining it to A/R when you tie the invoice zeroes it out.
Stripe Fee Revenue (revenue)
The surcharge you bill customers above the invoice to cover card processing. Booked as income at close.
Stripe Fee Expense (expense)
Stripe's processing fee that's netted out of each payout.
Delete Firms & Data
Schedule a firm and all of its data for permanent deletion. Its users get a notice and a
1-month window to download their data before anything is removed. You can cancel any time
during the window. This is available to you (the site owner) only, and your own firm can never be deleted.
Schedule a deletion
Scheduled & past deletions
Immediately purges any firm already past its deadline (normally the daily cron does this).
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Signup Codes
New businesses can only be created with a one-time code you hand out. The code's
type sets up the right chart of accounts and enabled features for that client. Each code
works once. Share the code itself, or the ready-made signup link.
Generate codes
All codes
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Out of Office & Auto-Reply
Controls the mailbox worker: it sends an out-of-office reply that carries no client data, and drops a suggested status draft (never auto-sent) for known clients. The cron worker runs from mailbot/ above public_html.
Presence
Back on
Recent activity
—
Client-facing status wording — exact text a client reads; no dollar amounts, SSNs, or reject codes
—
AI Draft Assistant ● 100% on your server — no external API, no web search
Drafts replies from your curated Updates (guidance you upload) and your past replies (your voice). It only ever cites what you add here.
✍ Draft a reply
🔄 Auto-download sources — RSS feeds pulled into the review queue
—
📥 Pending review — auto-downloaded; approve to let the drafter use them
🗣 Your past replies — the voice drafts are written in
—
Add update
Add a past reply
Add an update source
FASB/GASB via the FAF RSS page (accountingfoundation.org/rss), IRS via its newsroom RSS, IFRS via its news feed. Paste the exact feed URL.
Point a dedicated mailbox at only your newsletter subscriptions (IFRS alerts, IRS e-News). New messages there are filed into the review queue. For Gmail/Outlook use an app password, not your login password.
Access Review
Every role's capabilities, in one place. This is platform-wide — toggling a box changes what that role can do for every firm on PHAROS, not just this one, so it's visible only to the site owner. Boxes with a colored dot have been changed from the built-in default; use Reset to put one back.
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Sidebar Visibility
Show or hide individual sidebar items. Hidden items are still accessible by navigating directly — they simply won't appear in the sidebar. Changes take effect immediately.
Sales
Purchases
Accounting
Payroll & HR
Reports
Schedules: Balance Sheet
Schedules: Reconciliations
Schedules: Revenue
Schedules: Tax
Schedules: Consolidation
Schedules: Cash Flow
Schedules: Operational
Business Units
Business units append a 4-digit suffix to account numbers (e.g. 601000-0001). Link a business unit to a subsidiary to automatically include that entity's transactions.
Custom Report Builder
Build a report from specific accounts, or define formula-based sections using account values as variables.
Preview
Add sections on the left and click Run Report to see your report here.
Income Statement
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Balance Sheet
As of today
Cash Flow Statement
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General Ledger
All transactions organized by account
Trial Balance
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Income by Customer
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Consolidated Financials
Combines each `full`-method subsidiary's own books into this company's statements, with Non-Controlling Interest called out
Depreciation expense by asset, class, and method — book vs. tax
ASC 360 / IRC §168
Purpose
Tracks accumulated depreciation per asset. Supports multiple methods simultaneously: straight-line (book), double-declining balance, units of production, and MACRS / §168(k) bonus depreciation for tax. Must reconcile to the balance sheet accumulated depreciation account.
Key Inputs
Asset master (cost, date placed in service, useful life, method, salvage value), prior period accumulated depreciation, current period additions/disposals.
Primary Outputs
Current period depreciation by method, accumulated depreciation ending balance, book-tax depreciation difference (feeds M-1).
Architecture Note
This is the calculation engine underneath PP&E. Build the depreciation algorithm separate from the rollforward display. For MACRS, store the applicable IRS table by asset class and year. Tax basis should never overwrite book basis.
Schedule Engine — Build Queue
The Accumulated Depreciation Schedule schedule is architected and ready to be connected to your transaction data. Click below to start building this schedule into PHAROS.
Balance Sheet
Intangible Asset Schedule
Finite-lived amortization and indefinite-lived impairment documentation
ASC 350
Purpose
Separates finite-lived intangibles (patents, customer lists, non-competes — amortized over useful life) from indefinite-lived intangibles (trade names, certain in-process R&D — tested for impairment annually or on triggering events). Goodwill gets its own sub-schedule by reporting unit.
Amortization expense by asset, ending net book value, impairment charges recorded, qualitative assessment documentation.
Schedule Engine — Build Queue
The Intangible Asset Schedule schedule is architected and ready to be connected to your transaction data. Click below to start building this schedule into PHAROS.
Balance Sheet
Prepaid Expense Schedule
Amortization of prepaid balances over their service periods
Purpose
Tracks each prepaid (insurance, rent, subscriptions, maintenance contracts) from payment date through full amortization. Each line shows total paid, monthly amortization amount, accumulated amortization, and unexpired balance reconciling to the prepaid GL account.
Monthly amortization expense by prepaid type, remaining unexpired balance, reconciliation to GL.
Schedule Engine — Build Queue
The Prepaid Expense Schedule schedule is architected and ready to be connected to your transaction data. Click below to start building this schedule into PHAROS.
Balance Sheet
Accrued Liability Schedule
Accrual-by-accrual tracking with reversal documentation
Purpose
Supports the accrued liabilities balance sheet line with detail by accrual type: bonuses, vacation, warranty, professional fees, audit, legal contingencies. Each accrual has a basis (e.g., % of payroll, contract terms), the entry date, the expected reversal date, and the preparer rationale.
Key Inputs
Supporting calculations, contracts, prior period reversals, new period estimates.
Primary Outputs
Accrual detail with basis and rationale, reversals in subsequent period, reconciliation to GL accrued liabilities.
Architecture Note
Reversals are the most error-prone area. Build automatic reversal scheduling: when an accrual is entered, the system should prompt for reversal date and pre-stage the reversing entry.
Schedule Engine — Build Queue
The Accrued Liability Schedule schedule is architected and ready to be connected to your transaction data. Click below to start building this schedule into PHAROS.
Balance Sheet
Debt Schedule
Principal, interest, and debt issuance cost amortization
ASC 835-30 / ASC 470
Purpose
For each debt instrument: tracks principal balance, scheduled payments, accrued interest, and the amortization of debt issuance costs (DIC) using the effective interest method (ASC 835-30). Also documents covenant calculations and compliance at each measurement date.
Key Inputs
Loan agreements, original principal, rate (fixed or variable), payment schedule, DIC paid at issuance.
Primary Outputs
Carrying value by instrument, current vs. long-term classification, interest expense (effective rate), DIC amortization, covenant compliance ratios.
Architecture Note
Store the full amortization schedule at inception and lock it. Covenant calculations should pull live from the financial statements so compliance is always current.
Schedule Engine — Build Queue
The Debt Schedule schedule is architected and ready to be connected to your transaction data. Click below to start building this schedule into PHAROS.
Balance Sheet
Lease Schedule (ASC 842)
ROU asset and lease liability rollforwards — operating and finance
ASC 842
Purpose
The most complex balance sheet schedule under GAAP. Requires separate tracking for operating leases (ROU asset and lease liability, with single lease cost) and finance leases (ROU asset amortized separately from interest on lease liability). Each lease requires the incremental borrowing rate (IBR) used to discount future payments.
Build the lease calculation engine using the present-value-of-future-payments methodology. Store the full discount schedule at commencement and recompute on modification. Variable payments and non-lease components require separate tracking. This schedule should integrate with the financial close workflow.
Schedule Engine — Build Queue
The Lease Schedule (ASC 842) schedule is architected and ready to be connected to your transaction data. Click below to start building this schedule into PHAROS.
Balance Sheet
Equity Rollforward
Changes in stockholders equity — by class and component
ASC 505 / ASC 718
Purpose
Shows the statement of changes in stockholders equity: common stock, APIC, retained earnings, accumulated OCI (AOCI), and treasury stock. Required disclosure in financial statements. Also supports stock-based compensation expense recognition under ASC 718 (grant-by-grant vesting schedule with forfeiture estimates).
Ending balance by equity component, per-share calculations, SBC expense by grant, AOCI roll.
Schedule Engine — Build Queue
The Equity Rollforward schedule is architected and ready to be connected to your transaction data. Click below to start building this schedule into PHAROS.
Tracks inventory by location and category. Includes lower-of-cost-or-net-realizable-value (LCNRV) reserve, obsolescence reserve, and standard cost variance analysis. Must reconcile to the physical count and the GL inventory account.
Key Inputs
Beginning balances by category, purchases/production, COGS relief, physical count adjustments, standard costs.
Primary Outputs
Ending inventory by category and location, reserve adequacy analysis, variance from standard, days-inventory-outstanding.
Schedule Engine — Build Queue
The Inventory Rollforward schedule is architected and ready to be connected to your transaction data. Click below to start building this schedule into PHAROS.
Reconciliation
Bank Reconciliation
GL cash balance reconciled to bank statement balance — per account
Purpose
Classic bank reconciliation: starts with GL book balance, adds deposits in transit, subtracts outstanding checks, adds/subtracts bank errors, and reconciles to the bank statement ending balance. Each outstanding item should age until it clears or is written off. Stale items (>90 days) require investigation.
Key Inputs
GL cash account balance, bank statement (pull from Plaid once connected), prior period outstanding items.
Primary Outputs
Reconciled balance (book = bank after adjustments), list of outstanding items with age, items requiring journal entries.
Architecture Note
This is the highest-frequency reconciliation — monthly minimum, ideally daily. Plaid integration will auto-match transactions. Design the matching algorithm to flag duplicates, amount mismatches, and timing differences. Outstanding items should feed into the preparer workflow queue.
Schedule Engine — Build Queue
The Bank Reconciliation schedule is architected and ready to be connected to your transaction data. Click below to start building this schedule into PHAROS.
Reports
AR Aging & Allowance for Credit Losses
Open receivables aged in 30-day buckets · CECL allowance under ASC 326
ASC 326 · Live from Invoice & Transaction Data
AR Accounts
Hold Ctrl/Cmd to select multiple
Total AR
—
Current (0–30)
—
31–90 Days
—
91+ Days
—
DSO
—
CECL Allowance Rates (ASC 326)
%
%
%
%
%
Customer
Total AR
Current 0–30
31–60 Days
61–90 Days
91–120 Days
120+ Days
ACL Reserve
Net AR
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ACL Summary (ASC 326 CECL)
Methodology: Pool method — historical loss rates applied by aging bucket. Rates above are configurable and should be reviewed quarterly based on actual write-off history, current economic conditions, and reasonable and supportable forecasts per ASC 326-20-30.
Reconciliation
AP Aging
Open payables by vendor with payment timing analysis
Purpose
Aging of open payables by vendor in 30-day buckets. Identifies invoices approaching or past due, duplicate invoices, and debit balances (potential fraud indicator). Reconciles to GL accounts payable balance.
Key Inputs
Open vendor invoices, payment terms by vendor, GL AP balance.
Primary Outputs
Aged AP by vendor, invoices past due, days-payable-outstanding, reconciliation to GL.
Schedule Engine — Build Queue
The AP Aging schedule is architected and ready to be connected to your transaction data. Click below to start building this schedule into PHAROS.
Reconciliation
Intercompany Reconciliation
Eliminating entries support for consolidated entities
ASC 810
Purpose
For each intercompany relationship, reconciles the receivable on one entity to the payable on the other. Differences must be resolved before consolidation. Supports the elimination journal entries that remove intercompany revenue, COGS, receivables, payables, and unrealized profit in inventory.
Key Inputs
AR/AP balances between entities (pulled from each entity's GL), intercompany sales and purchases, unrealized profit in ending inventory.
Primary Outputs
Matched/unmatched items, required elimination entries, consolidated net position.
Architecture Note
This schedule is most critical for multi-entity clients. Design it so each entity's controller can see only their side, but the consolidating entity sees the full matrix. Differences should trigger an alert workflow — they should never silently pass into consolidated financials.
Schedule Engine — Build Queue
The Intercompany Reconciliation schedule is architected and ready to be connected to your transaction data. Click below to start building this schedule into PHAROS.
Tax
Schedule C — Profit or Loss from Business
Small business / sole proprietor / single-member LLC worksheet
IRS Form 1040 Schedule C
Loading Schedule C...
Tax
Per Diem & Mileage Calculator
GSA M&IE rates by event · IRS mileage reimbursement · Schedule C Lines 24a/24b
IRS Rev. Proc. 2019-48 · GSA Per Diem API · Rates current per fiscal year
Add Event
Description
Dates
Start City
End City
Days
M&IE Rate
Gross M&IE
50% Deductible
No events yet — add one above
TOTAL
IRS Rules (Pub. 463): M&IE deduction requires being "away from home" overnight or long enough to require sleep/rest. Same-day round trips are not deductible. For overnight travel: first & last day = 75% of daily M&IE, middle days = 100%. Meals subject to 50% deductibility limit (§274(n)). Incidentals included in M&IE.
Add Mileage Trip
Event
Date
Start
Destination
Miles
Deduction
No mileage trips yet
TOTAL
Sales
Products & Services
Your catalog — rates auto-populate when added to invoices
Total Items
—
Services
—
Products
—
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New Item
When this item is invoiced, revenue posts here on the GL.
Action items, tasks, and things needing your attention
📅
Google Tasks
Not connected — tasks will save to PHAROS only
✓ Connected to Google Tasks
Transactions with no category assigned. Click a row to categorize inline.
Categories auto-suggested from a similar past transaction, not yet confirmed. These block the month they fall in from closing until reviewed.
Deposits and credits not yet linked to an invoice.
Clients have indicated payment was sent via Zelle or Venmo. Verify and mark paid.
Work-in-progress jobs assigned to you. Click one to open it.
Invoices submitted for your approval. Open one to approve or reject it.
New Task
Bills
Track vendor bills, manage approvals, and pay accounts payable.
Vendors
Manage vendor contacts, payment terms, and purchase history.
Sales
Invoices
Create, send and track client invoices
Outstanding
—
Overdue
—
Paid (YTD)
—
Draft
—
Unsent (total)
—
Loading invoices…
New Invoice
Line Items
Description (start typing to pick from catalog)
Qty
Rate
Amount
Subtotal$0.00
Tax
%$0.00
Total$0.00
Link Transactions
Optional — sync invoice with transaction records
Loading transactions…
🗑
Approval:
Payroll & HR
Employees & Contractors
W-2 employees and 1099 independent contractors
W-2 Employees
—
1099 Contractors
—
Total Payroll
—
1099 Payments YTD
—
⚠ 1099-NEC Threshold: contractors have been paid $2,000 or more this year and require a 1099-NEC filing.
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New Employee
Team
Training
Watch training videos and reference material
Add Training
Uploading…
Training
Payroll
Timesheets
Time clock, weekly time tracking and approval
This Week
--
Pending Approval
--
Total Hours
--
Est. Payroll
--
Employee
--
--
Pay Period
--
Pay Rate
--
Total Hours
0.0
Est. Pay
$0.00
Type
Daily Total
Project time — log time to one or more projects per day
Week notes (summary)
Approval History
Reconciliation
Book-to-Tax Reconciliation
M-1 / M-3 support — permanent and temporary differences
IRC / ASC 740
Purpose
Reconciles book income (per financial statements) to taxable income. Permanent differences never reverse (meals, lobbying, tax-exempt income). Temporary differences reverse over time and create deferred taxes. The M-3 is required for large corporations and requires disclosure of each difference over $1M.
Key Inputs
Pre-tax book income by entity, depreciation (book vs. tax), stock comp (ASC 718 vs. §83(b)/(h)), accruals deductible only when paid, revenue recognition timing differences.
Primary Outputs
Taxable income by jurisdiction, permanent vs. temporary difference schedule, deferred tax asset/liability change, M-1 or M-3 support.
Architecture Note
The book-to-tax schedule feeds the deferred tax schedule. Build a difference library where each type of book-tax difference has a defined tax treatment. Users should be able to add new difference types and tag them as permanent vs. temporary, with the relevant IRC section.
Schedule Engine — Build Queue
The Book-to-Tax Reconciliation schedule is architected and ready to be connected to your transaction data. Click below to start building this schedule into PHAROS.
Reconciliation
Payroll Tax Reconciliation
941 to GL, W-2 to 941, state UI reconciliation
IRS Pub 15
Purpose
Three-way reconciliation: (1) 941 quarterly payroll tax returns to GL payroll expense and tax liability accounts, (2) W-2 annual wages to 941 year-to-date wages, (3) state unemployment (FUTA/SUTA) wages to state returns. Common errors include timing differences, gross-up errors, and incorrect benefit exclusions.
Three-way reconciliation sign-off, identified differences with explanation, amended return needs.
Schedule Engine — Build Queue
The Payroll Tax Reconciliation schedule is architected and ready to be connected to your transaction data. Click below to start building this schedule into PHAROS.
Revenue
Deferred Revenue Rollforward
Performance obligation tracking under ASC 606
ASC 606
Purpose
Tracks deferred revenue by performance obligation: beginning balance + amounts billed − amounts recognized = ending balance. Under ASC 606 the recognition trigger is satisfaction of a performance obligation (point-in-time or over-time). Contract modifications, variable consideration, and significant financing components require separate tracking.
Deferred revenue ending balance by obligation type, current vs. long-term classification, revenue recognized in period, new contracts added.
Architecture Note
The deferred revenue rollforward is directly linked to the revenue recognition waterfall. Build both together — they share the same contract data model. Store contracts with their performance obligations, and have the recognition engine pull forward automatically each period.
Schedule Engine — Build Queue
The Deferred Revenue Rollforward schedule is architected and ready to be connected to your transaction data. Click below to start building this schedule into PHAROS.
Revenue
Revenue Recognition Waterfall
Booking to recognition tracking by contract
ASC 606
Purpose
The 5-step model from ASC 606: (1) identify the contract, (2) identify performance obligations, (3) determine the transaction price, (4) allocate to obligations, (5) recognize as satisfied. The waterfall schedule shows how booked amounts flow through this process, particularly important for SaaS subscriptions, long-term contracts, and bundled arrangements.
Key Inputs
Signed contracts, performance obligation schedule, standalone selling prices for each element, billing milestones.
Primary Outputs
Revenue by obligation and recognition method, contract asset/liability position, variable consideration recognized and constrained.
Schedule Engine — Build Queue
The Revenue Recognition Waterfall schedule is architected and ready to be connected to your transaction data. Click below to start building this schedule into PHAROS.
Revenue
Commission Amortization (ASC 340-40)
Capitalized contract costs and amortization
ASC 340-40
Purpose
Sales commissions that are incremental to obtaining a customer contract must be capitalized and amortized over the expected customer relationship (or contract term if practical expedient elected). This schedule tracks each cohort of capitalized commissions from the contract signing through full amortization.
Capitalized commission balance by cohort, current-period amortization, impairment indicators.
Schedule Engine — Build Queue
The Commission Amortization (ASC 340-40) schedule is architected and ready to be connected to your transaction data. Click below to start building this schedule into PHAROS.
Tax
Deferred Tax Schedule (ASC 740)
DTA / DTL by temporary difference and jurisdiction
ASC 740
Purpose
Comprehensive schedule of all temporary differences between book and tax bases of assets and liabilities. Deferred tax assets arise from items deductible in future years (loss carryforwards, warranty accruals). Deferred tax liabilities arise from items taxable in future years (accelerated depreciation). Valuation allowances reduce DTAs when realization is not more-likely-than-not.
Gross DTA/DTL by difference type, net DTA/DTL after valuation allowance, effective tax rate components.
Architecture Note
The deferred tax schedule is downstream of the book-tax reconciliation and upstream of the tax provision. Build it as a rules engine that automatically classifies each difference type and applies the correct rate. Valuation allowance analysis requires management judgment documentation — build an approval workflow for VA changes.
Schedule Engine — Build Queue
The Deferred Tax Schedule (ASC 740) schedule is architected and ready to be connected to your transaction data. Click below to start building this schedule into PHAROS.
Tax
Tax Provision & ETR Reconciliation
ASC 740 current/deferred breakout with effective rate bridge
ASC 740
Purpose
The income tax provision has two components: current tax (tax owed to the government this year) and deferred tax (change in DTA/DTL). The ETR reconciliation bridges from the statutory rate (21% federal) to the actual effective tax rate, explaining each difference (state taxes, R&D credits, GILTI, permanent differences, etc.).
Key Inputs
Pre-tax book income, current year taxable income, deferred tax schedule, tax credits, uncertain tax positions.
Primary Outputs
Total income tax expense (current + deferred), ETR reconciliation, year-over-year ETR analysis.
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Tax
NOL & Credit Carryforward
Net operating loss and tax credit tracking with §382 limitations
IRC §382 / ASC 740
Purpose
Tracks net operating losses and tax credit carryforwards by year of origin, expiration date, and jurisdiction. For entities that have undergone ownership changes (>50% over 3 years), §382 annual limitation restricts NOL utilization. This schedule documents each ownership change, the applicable §382 limit, and the expected utilization schedule.
Key Inputs
Tax returns by year, ownership change analysis, §382 annual limitation calculation, credit carryforward amounts and types.
Primary Outputs
NOL by year and jurisdiction with expiration, §382-limited vs. unlimited NOLs, annual utilization, valuation allowance on expiring NOLs.
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Tax
Uncertain Tax Positions (ASC 740-10)
FIN 48 — measurement and disclosure of tax uncertainties
ASC 740-10 (FIN 48)
Purpose
Documents each uncertain tax position (UTP): the technical tax analysis, the more-likely-than-not threshold, the measurement of the largest amount more-likely-than-not to be sustained, and interest/penalties accrued. The rollforward shows changes from new positions taken, settlements with taxing authorities, and lapses of statutes of limitations.
Key Inputs
Tax positions taken on returns, legal analysis (internal or external), open years by jurisdiction, settlement discussions.
Primary Outputs
Gross unrecognized tax benefit rollforward, interest and penalty accrual, potential cash impact if all UTPs resolved against taxpayer.
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Tax
State Apportionment
Multi-state income allocation by factor
State law
Purpose
Tracks the apportionment factors (sales, payroll, property — varying by state) used to allocate taxable income to each state where the company has nexus. Supports the combined/unitary group analysis for states requiring it, and documents P.L. 86-272 protections where applicable.
Key Inputs
Sales by destination state, payroll by state, property values by state, nexus analysis by state.
Primary Outputs
Apportionment factor by state, allocated taxable income, effective state rate, combined reporting group members.
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Consolidation
Consolidation Eliminating Entries
Intercompany elimination journal entries
ASC 810
Purpose
Documents every eliminating entry required in the consolidation: intercompany revenue/COGS, intercompany receivables/payables, investment in subsidiary vs. equity, intercompany dividends, unrealized profit in inventory, and upstream/downstream transactions with non-wholly-owned subsidiaries.
Elimination entry listing by type with debit/credit detail, post-elimination consolidated balance.
Architecture Note
Elimination entries should never be posted to any entity's GL — they exist only at the consolidation layer. Design the data model so consolidated statements are computed dynamically from entity trial balances plus elimination entries, not from a modified GL.
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Consolidation
FX Translation (ASC 830)
Currency translation adjustment and remeasurement
ASC 830
Purpose
For subsidiaries with a functional currency different from the reporting currency: assets and liabilities are translated at the current rate, revenues and expenses at the average rate, and equity at historical rates. The resulting translation adjustment (CTA) goes to AOCI — it is not a gain or loss unless the subsidiary is sold. Remeasurement (if functional currency = reporting currency) produces gains/losses in income.
Key Inputs
Trial balances in local currency, functional currency designation, exchange rates (spot, average, historical).
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Consolidation
Non-Controlling Interest Rollforward
Minority interest tracking for partially-owned subsidiaries
ASC 810
Purpose
Tracks the non-controlling interest (NCI) component of equity for each subsidiary that is not wholly owned. NCI receives its proportionate share of the subsidiary's net income and OCI, and is reduced by distributions. Under ASC 810, NCI is presented as a component of consolidated equity, not as a liability.
NCI beginning balance, NCI share of net income, NCI distributions, NCI ending balance (feeds consolidated equity rollforward).
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Balance Sheet
Goodwill Schedule
By reporting unit — annual impairment testing documentation (ASC 350)
ASC 350-20
Purpose
Tracks goodwill by reporting unit from acquisition through any impairment charges. Supports both the qualitative (Step 0) and quantitative impairment test. Under ASC 350, goodwill is no longer amortized — it is tested annually or upon a triggering event. Each reporting unit needs a fair value estimate (often an income approach or market approach) to compare against its carrying value.
Key Inputs
Acquisition cost by reporting unit, prior impairment charges, annual impairment test results (fair value determination method, key assumptions), triggering event documentation.
Primary Outputs
Goodwill carrying value by reporting unit, cumulative impairment charges, current-period impairment expense, qualitative vs. quantitative test documentation.
Architecture Note
The most important design decision here is storing the impairment test methodology and assumptions as structured data, not just a PDF attachment. Fair value estimates change year over year — you want to see prior-year assumptions side-by-side. Each reporting unit should have a defined set of inputs (discount rate, terminal growth rate, revenue projections) that feed a valuation model.
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Balance Sheet
Stock-Based Compensation Schedule
Grant-by-grant vesting, forfeitures, and ASC 718 expense recognition
ASC 718
Purpose
Tracks every equity award (stock options, RSUs, PSUs, ESPP) from grant date through expiration or settlement. Expense is recognized over the requisite service period using the grant-date fair value (Black-Scholes or lattice model for options; grant-date stock price for RSUs). Forfeiture estimates are accounted for either through an estimate or when forfeitures occur (accounting policy election post-ASU 2016-09).
Key Inputs
Grant agreements (date, type, quantity, vesting schedule, strike price), Black-Scholes inputs (volatility, risk-free rate, expected term, dividend yield) for options, forfeiture rate assumption, stock price at grant date.
Primary Outputs
SBC expense by grant and by period, APIC rollforward for SBC, unrecognized SBC expense and weighted-average recognition period, diluted share count impact (treasury stock method), tax benefit on SBC.
Architecture Note
Store the full vesting schedule at grant and compute expense forward automatically. The Black-Scholes inputs should be locked at grant date and documented — auditors will test these. For PSUs, the performance condition probability (0–100%) drives expense recognition and needs to be updated each period with a documented rationale. Build an alert for grants expiring within 30 days.
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Reconciliation
Cash-to-Accrual Reconciliation
Book to cash basis conversion — for entities reporting on different bases
Purpose
Converts between cash basis and accrual basis income for entities that maintain their books on a cash basis but need accrual-basis financial statements (or vice versa). Identifies the timing differences: accounts receivable, accounts payable, accrued liabilities, prepaid expenses, deferred revenue, and depreciation.
Key Inputs
Cash-basis income statement, AR and AP balances, prepaid and accrual balances, deferred revenue, depreciation schedule.
Primary Outputs
Accrual-basis income from cash-basis income, adjustment schedule by category, reconciling items with GL account references.
Architecture Note
This is most useful for small business clients and tax practitioners. The schedule should be period-aware and pull directly from the transactions module — cash receipts vs. accrual revenue recognition, and cash disbursements vs. accrual expense recognition.
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Reconciliation
Sales Tax Reconciliation
Taxable sales by jurisdiction reconciled to returns filed
Purpose
Reconciles gross sales per the financial statements to taxable sales reported on each jurisdiction's sales tax return. Identifies exempt sales (resale, government, non-profit), sales to jurisdictions without nexus, and return/credit adjustments. Supports audit defense if a jurisdiction challenges the return.
Key Inputs
GL revenue by customer and product/service type, customer exemption certificates on file, nexus analysis by state, sales tax returns filed.
Primary Outputs
Taxable sales by jurisdiction, tax collected vs. tax remitted, reconciliation to GL sales tax liability, jurisdiction-by-jurisdiction detail.
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Reconciliation
1099 Tracking Schedule
Vendor payment tracking for year-end 1099-NEC and 1099-MISC reporting
IRS
Purpose
Tracks payments to vendors who may require 1099 reporting. Vendors are classified by entity type (individual, partnership, LLC — pass-throughs require 1099s; corporations generally do not). Payments for services over $600 in a calendar year require a 1099-NEC. Rent payments over $600 require a 1099-MISC. Attorney fees require a 1099-NEC regardless of entity type.
Key Inputs
Vendor master (name, address, TIN, entity type, W-9 on file), payments by vendor from the GL, exclusions (corporations, real estate, etc.).
Primary Outputs
1099-eligible vendors with YTD payment totals, W-9 status (on file, requested, missing), 1099-NEC vs. 1099-MISC classification, backup withholding flags.
Architecture Note
Pull directly from the transactions module filtered by vendor/expense category. Flag any vendor with payments over $500 YTD as a watch item — gives time to collect W-9s before year-end. The W-9 status should be a required field before a vendor can be marked as a non-1099 entity.
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Revenue
Contract Asset / Liability Schedule
Unbilled AR and deferred revenue by contract under ASC 606
ASC 606
Purpose
Contract assets arise when an entity has satisfied a performance obligation but does not yet have the right to bill (common in construction and milestone-based contracts). Contract liabilities (deferred revenue) arise when cash is received before performance. Both are contract-level concepts — the net position per contract determines presentation as an asset or liability.
Key Inputs
Signed contracts with billing milestones, performance obligation satisfaction dates, amounts billed vs. recognized, cash received.
Primary Outputs
Contract asset balance by contract (unbilled revenue earned), contract liability balance (billings in excess of costs), net position by contract, rollforward of changes.
Architecture Note
The contract asset/liability schedule is directly linked to the deferred revenue rollforward and revenue waterfall. Design the contract data model once and serve all three schedules from it. Contract assets are subject to the same CECL impairment framework as trade AR — build that linkage into the AR aging schedule.
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Revenue
Variable Consideration Schedule
Estimate and constraint analysis for variable transaction prices (ASC 606)
ASC 606
Purpose
When a contract includes variable consideration (discounts, rebates, refunds, price concessions, performance bonuses, penalties), the amount must be estimated and then constrained to the extent it is probable that a significant revenue reversal will not occur. The schedule documents each estimate method used (expected value or most likely amount) and the constraint analysis.
Key Inputs
Contract terms with variable elements, historical data for expected value estimates, management judgments on constraint amounts.
Primary Outputs
Estimated variable consideration by contract, constrained amount recognized, cumulative catch-up adjustments, reserve for potential reversals.
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Tax
Fixed Asset Tax Basis Schedule
Tax depreciation separate from book — Section 179, bonus depreciation, MACRS
IRC §168 / §179
Purpose
Maintains the tax basis of fixed assets entirely separate from book basis. Tax depreciation is computed using MACRS (Modified Accelerated Cost Recovery System) with applicable convention (half-year, mid-quarter, mid-month). Tracks Section 179 expensing elections, bonus depreciation under IRC §168(k), and listed property limitations. The difference between book and tax depreciation flows into the M-1 reconciliation and deferred tax schedule.
Key Inputs
Asset acquisitions with placed-in-service dates, asset class (determines MACRS life and method), §179 election amounts, bonus depreciation elections, prior-year tax depreciation.
Primary Outputs
Annual MACRS depreciation by asset, cumulative tax depreciation, tax basis (cost less accumulated tax depreciation), book-tax depreciation difference by asset, Section 179 and bonus amounts.
Architecture Note
Never let book depreciation overwrite tax depreciation. These are two completely separate calculations that happen to start from the same asset cost. Store them in separate fields. The tax basis schedule feeds both the M-1 (book-tax differences) and the deferred tax schedule (temporary differences). For disposals, you need to compute both book and tax gain/loss separately.
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Tax
Sales/Use Tax Nexus Schedule
State-by-state nexus analysis — economic and physical presence thresholds
Wayfair (2018)
Purpose
Post-South Dakota v. Wayfair (2018), economic nexus thresholds (typically $100,000 in sales or 200 transactions per state) trigger sales tax collection obligations without physical presence. This schedule tracks the company's activity in each state against each state's economic nexus thresholds, physical presence factors, and registration status. P.L. 86-272 protections (for income tax, not sales tax) are tracked separately.
Key Inputs
Sales by destination state (from the transactions module), physical presence factors (employees, property, inventory) by state, current registration status by state.
Primary Outputs
Nexus determination by state (yes/no/evaluate), economic nexus thresholds with current activity levels, states approaching threshold, registration status and filing frequency.
Architecture Note
Pull sales data directly from the transactions module filtered by state. Build an alert system: when a state reaches 80% of the economic nexus threshold, flag it for review. Different thresholds apply for marketplace facilitators vs. direct sellers — this distinction needs to be a configuration option.
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Cash Flow
Indirect Method Worksheet
Net income to operating cash flow — accrual to cash conversion
ASC 230
Purpose
The indirect method cash flow statement starts with net income and adjusts for (1) non-cash items (depreciation, amortization, SBC, deferred taxes, impairments), (2) working capital changes (increases in AR reduce cash; increases in AP increase cash), and (3) non-operating gains/losses removed from operations. This worksheet ties each adjustment line to the supporting schedule or GL account.
Key Inputs
Net income from income statement, all non-cash charges (depreciation schedule, amortization schedules, SBC schedule), working capital account changes (AR, inventory, prepaid, AP, accrued liabilities, deferred revenue).
Primary Outputs
Operating, investing, and financing cash flow sections with full schedule cross-references, reconciliation of net income to net cash from operations, free cash flow calculation.
Architecture Note
Each line in the indirect method worksheet should be a clickable reference to the underlying schedule. The biggest audit risk is non-cash items — make sure every add-back has a supporting schedule. The cash flow statement should be auto-generated from the GL and supporting schedules, not hand-built.
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Cash Flow
Restricted Cash Schedule
Classification and disclosure of restricted cash balances (ASU 2016-18)
ASC 230 / ASU 2016-18
Purpose
Under ASU 2016-18, restricted cash and restricted cash equivalents are included with cash in the cash flow statement, and changes in restricted cash are no longer shown as investing activities. This schedule documents each restricted cash arrangement: the restriction source (escrow agreement, collateral, regulatory requirement), the amount, the expected release date, and the balance sheet classification (current vs. non-current based on when the restriction lifts).
Key Inputs
Bank account balances designated as restricted, underlying agreements/covenants creating the restriction, expected release timeline.
Primary Outputs
Restricted cash by restriction type and release date, current vs. non-current classification, beginning-to-ending rollforward, reconciliation to the cash flow statement opening/closing balance.
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Operational
Budget vs. Actual
Variance analysis by department and cost center against approved budget
Purpose
Compares actual financial results (pulled from the transactions module) to the approved budget, with variance analysis by dollar amount and percentage. Supports departmental accountability and management reporting. Includes prior-year comparatives for trending. Favorable vs. unfavorable variances are clearly flagged, and significant variances require management explanation.
Key Inputs
Approved annual budget by account and department/cost center, actual results from the GL/transactions module, prior-year actuals.
Primary Outputs
Actual vs. budget variance by account (P&L and balance sheet), % variance, favorable/unfavorable designation, YTD actuals vs. YTD budget, full-year forecast vs. full-year budget.
Architecture Note
The budget should be entered once per fiscal year and locked. Reforecasts are separate from the original budget — always preserve the original budget for variance analysis. Pull actuals automatically from the transactions module so this report is always current without manual updates.
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Operational
Headcount & Compensation Schedule
FTE counts, compensation expense, and benefits by department
Purpose
Tracks headcount by department, employment type (full-time, part-time, contractor), and role. Links to total compensation expense (base salary, bonus, benefits, SBC) from the payroll module and the GL. Supports the compensation schedules required in Form 990 for non-profits and proxy disclosures for public companies. FTE equivalents are used in state apportionment formulas.
Key Inputs
Payroll register (from payroll module), headcount data by department, benefits cost allocations, SBC expense from the SBC schedule.
Primary Outputs
Headcount by department (beginning, additions, terminations, ending), total compensation by department, average compensation per FTE, compensation as % of revenue.
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Operational
Capital Expenditure Tracking
Budget, commitment, and actual CapEx versus authorization
Purpose
Tracks capital expenditures from initial budget authorization through commitment (purchase orders issued) to actual spend. Each CapEx project should have an approved budget, the authorizing approver, expected placed-in-service date, and asset class for depreciation purposes. CIP (construction-in-progress) items transfer to fixed assets when placed in service.
Key Inputs
Approved CapEx budgets, purchase orders issued, invoices received (from transactions module), placed-in-service dates, asset class determinations.
Primary Outputs
CapEx by project: budget vs. committed vs. actual spend, remaining budget, expected completion date, CIP items pending transfer to fixed assets, rolling 12-month CapEx forecast.
Architecture Note
CapEx tracking is the bridge between the operations team (who approve purchases) and the accounting team (who capitalize and depreciate). Build an approval workflow: project creation, budget authorization, PO issuance, invoice matching. Each approved project feeds directly into the PP&E rollforward when the asset is placed in service.
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Operational
WIP / Job Cost Schedule
Work-in-progress for construction and project-based revenue (ASC 606 input method)
ASC 606
Purpose
For construction contractors and project-based businesses using the percentage-of-completion (input) method: tracks costs incurred to date, estimated costs to complete, revenue recognized to date, and overbilling/underbilling (contract asset/liability) by job. Supports the over/under billing schedule and feeds the balance sheet contract asset/liability.
Key Inputs
Contract value, estimated total costs, costs incurred to date by job (from transactions module), billings to date, prior-period recognized revenue.
Primary Outputs
Percentage completion by job, revenue recognized to date, revenue recognized in current period, gross profit by job, overbilling (billings in excess) and underbilling (costs in excess) balances.
Architecture Note
WIP is one of the highest-risk areas in a construction audit. The estimated cost-to-complete is a management estimate that directly drives revenue recognition — build a structured input form for updating the estimate each period, with a required rationale for significant changes. The job cost schedule should feed the contract asset/liability schedule automatically.
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Reconciliation
Contingency Schedule
Loss contingency accrual, disclosure thresholds, and probability assessment
ASC 450
Purpose
Documents every known contingency — litigation, regulatory investigations, warranty obligations, environmental liabilities, guarantees — with a probability assessment (probable / reasonably possible / remote) and estimated range of loss. Probable contingencies above a threshold require accrual. Reasonably possible contingencies require disclosure only. Remote contingencies may be omitted.
Key Inputs
Legal counsel summaries, open litigation files, regulatory correspondence, warranty claims history, environmental assessments, management judgment on probability.
Primary Outputs
Accrued contingency balance by item, disclosure-only items with range of loss, items assessed as remote, rollforward of changes (new items, settlements, changes in estimate).
Architecture Note
The most litigation-prone audit area. Each contingency needs a unique ID, the legal basis, the exposure range, the probability classification, and a dated management rationale. Classification changes between periods need preparer/reviewer sign-off and should be immutable after period close. Link each item to the accrued liabilities schedule.
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Classifies each asset and liability measured at fair value into the three-level hierarchy: Level 1 (quoted prices in active markets), Level 2 (observable inputs other than Level 1), Level 3 (unobservable inputs — management estimates). Level 3 measurements require the most documentation and are subject to the most scrutiny. Includes a rollforward of Level 3 items showing transfers in/out and unrealized gains/losses.
Fair value hierarchy table by asset/liability class, Level 3 rollforward (beginning balance, purchases, sales, transfers, unrealized G/L, ending balance), significant assumptions by measurement, sensitivity analysis for Level 3.
Architecture Note
Build the fair value schedule as a disclosure-ready output from day one — the ASC 820 tabular disclosures are required in the notes to financial statements and are formulaic. Level 3 inputs need version control: document the assumption set used for each measurement date so period-over-period changes in assumptions can be analyzed.
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Balance Sheet
Derivatives & Hedging Schedule
Hedge designation, effectiveness testing, and OCI rollforward
ASC 815
Purpose
Tracks every derivative instrument (interest rate swaps, FX forwards, commodity futures, options) from inception through settlement. For designated hedges (fair value, cash flow, or net investment), documents the hedge relationship, the hedged risk, and the ongoing effectiveness assessment. Cash flow hedge gains/losses are deferred in AOCI until the hedged transaction affects earnings.
Key Inputs
Derivative contracts (notional, rate/price, maturity), hedge designation documentation, effectiveness test methodology and results, marked-to-market valuations from counterparty or pricing model.
Primary Outputs
Derivative fair value by instrument (Level in fair value hierarchy), hedge effectiveness assessment, AOCI rollforward for cash flow hedges, income statement impact of de-designated or ineffective hedges.
Architecture Note
Hedge accounting is one of the most complex areas in GAAP. The designation documentation must be completed at inception — retroactive designation is not permitted. Build a designation workflow: create the hedge record, attach the hedging relationship documentation, and lock it before the first reporting period. De-designation requires a separate workflow with management approval.
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Balance Sheet
Equity Securities Schedule
Equity investments at fair value through net income (ASC 321)
ASC 321
Purpose
Under ASC 321 (post-ASU 2016-01), equity securities without a readily determinable fair value are measured using the measurement alternative (cost minus impairment, plus or minus observable price changes). Equity securities with readily determinable fair value are marked to market through net income — not OCI. This schedule tracks each investment from acquisition through disposal.
Key Inputs
Investment statements, observable price changes for measurement alternative securities, impairment indicators assessment, cost basis records.
Primary Outputs
Investment balance by security (cost, unrealized G/L, carrying value), unrealized gain/loss recognized in net income for the period, impairment assessments, rollforward of changes.
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Balance Sheet
Equity Method Investment Schedule
Share of investee earnings, basis differences, and impairment
ASC 323
Purpose
For investments giving significant influence (generally 20%–50% ownership), the equity method records the investor's proportionate share of the investee's net income/loss, adjusts for basis differences (excess purchase price allocated to identifiable assets), and tests for other-than-temporary impairment. The investment balance is a single line on the balance sheet; this schedule supports it.
Key Inputs
Investee financial statements, ownership percentage, acquisition cost vs. book value of net assets (basis difference), intercompany transactions.
Primary Outputs
Investment carrying value rollforward (beginning balance + equity in earnings − dividends received ± basis difference amortization = ending balance), basis difference schedule by asset type, impairment indicators.
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Operational
Segment Reporting Schedule
Operating segment identification, CODM reporting, and reconciliation to consolidated
ASC 280
Purpose
Required for public companies; increasingly expected for PE-backed, pre-IPO, and large private entities. Segments are determined based on how the chief operating decision maker (CODM) reviews financial information — not by legal entity or product line unless that's how the CODM operates. This schedule identifies each reportable segment, the measure of profit/loss used by the CODM, and reconciles segment totals to consolidated financials.
Key Inputs
Internal management reporting packages, CODM presentation materials, segment revenue and operating income by business unit or geography.
Primary Outputs
Segment revenue, segment profit/loss (CODM measure), segment assets (if regularly provided to CODM), reconciliation of segment totals to consolidated P&L and balance sheet, geographic disaggregation.
Architecture Note
The Business Units module in PHAROS is the natural foundation for segment reporting. Tag each transaction with a business unit and the segment rollup is automatic. The key design requirement is that the segment measure of profit must match exactly what the CODM sees — build the segment P&L to pull from the same data as the management reporting package, not a separate calculation.
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Determines whether instruments with both liability and equity characteristics (convertible preferred stock, SAFEs, redeemable common stock, warrants, convertible notes) should be classified as liabilities or equity. Mandatorily redeemable instruments are generally liabilities. Conditionally redeemable instruments (e.g., preferred stock redeemable only upon a liquidity event) are in the mezzanine (temporary equity) — not permanent equity and not a liability.
Key Inputs
Cap table, shareholder agreements, certificate of incorporation (preferred stock terms), warrant agreements, convertible note terms.
This is the most consequential classification judgment for startup and growth-stage companies. SAFEs are particularly complex — the current AICPA guidance treats most SAFEs as liabilities unless specific equity conditions are met. Build a classification decision tree as structured data so the rationale is auditable and consistent period over period.
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Reconciliation
Guarantees & Warranties Schedule
Product warranty accrual, indemnifications, and guarantee liability recognition
ASC 460
Purpose
Covers two types of obligations: (1) product or service warranties — accrued based on historical claims rates, estimated repair costs, and units sold under warranty; (2) indemnification arrangements — guarantees given to third parties (typically in sale agreements, credit arrangements, or joint ventures) that require recognition at fair value at inception.
Key Inputs
Warranty claims history, units sold under warranty, estimated repair cost per unit, indemnification agreements.
Primary Outputs
Warranty accrual rollforward (beginning balance + expense accrued − claims paid = ending balance), warranty expense for the period, indemnification liability at fair value, maximum exposure under guarantees.
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Reconciliation
Restructuring & Exit Cost Schedule
Severance, contract termination, and facility costs under approved exit plan
ASC 420
Purpose
One-time termination benefits (severance) are accrued when management has committed to a formal exit plan and communicated to affected employees. Contract termination costs are recognized when the contract is terminated or when the entity ceases to use the right under the contract. Facility-related costs (leasehold write-offs, restoration obligations) are recognized when incurred.
Key Inputs
Board-approved restructuring plan, headcount reduction list with severance terms, lease termination agreements, asset write-off schedules.
Primary Outputs
Restructuring liability rollforward by cost type (severance, contract termination, other), charges recognized in income statement by period, cumulative charges vs. total estimated plan cost, remaining liability.
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Non-Profit
Not-for-Profit Reporting Schedule
Net asset classification, functional expense allocation, and endowment accounting
ASC 958
Purpose
Non-profits present net assets in two classes: without donor restrictions and with donor restrictions. Expenses must be reported by function (program services, management & general, fundraising) either on the face of the statements or in the notes. Endowment funds require underwater endowment tracking and the UPMIFA spending policy. Form 990 preparation is a separate but related deliverable.
Key Inputs
Donor grant agreements (restriction terms and purposes), functional allocation methodology (time and effort, direct cost, square footage), endowment fund statements, board-designated fund balances.
Primary Outputs
Net asset rollforward by restriction class, functional expense matrix (natural vs. functional classification), endowment spending rate calculation, underwater endowment disclosure, Form 990 Schedule A support.
Architecture Note
Non-profit accounting is fundamentally different from for-profit — the statement of financial position, statement of activities, and statement of functional expenses all have different structures. Consider making NFP mode a toggle in General Settings that restructures the chart of accounts and report templates accordingly.
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Balance Sheet
Loan & Receivable Schedule
Loan origination fees, troubled debt restructuring, and financing receivables
ASC 310
Purpose
For entities that originate or hold loans as financial assets: tracks the net carrying value of each loan (principal less unearned fees and costs, less allowance). Loan origination fees net of direct origination costs are deferred and recognized over the loan life using the effective interest method. Troubled debt restructurings (TDRs) require separate disclosure and may result in impairment.
Loan portfolio carrying value by class, net deferred fee/cost balance, credit quality disclosure, TDR rollforward, allowance for loan losses (linking to ASC 326 CECL schedule).
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The Loan & Receivable Schedule schedule is architected and ready to be connected to your transaction data.
Balance Sheet
Software Development Cost Schedule
Internal-use software (ASC 350-40) and software-for-sale (ASC 985-20) capitalization
ASC 350-40 / ASC 985-20
Purpose
Internal-use software (ASC 350-40): costs in the preliminary project stage are expensed; costs in the application development stage are capitalized; post-implementation costs are expensed. The stage determination is a judgment call that auditors test closely. Software developed for external sale (ASC 985-20): costs prior to technological feasibility are R&D expense; costs from feasibility through product release are capitalized.
Key Inputs
Project timesheets by stage, employee/contractor hourly rates allocated to software projects, technological feasibility documentation for ASC 985-20.
Primary Outputs
Capitalized software by project and stage, accumulated amortization, net book value, current-period capitalization and amortization, write-offs for abandoned projects.
Architecture Note
Stage determination is the most audited judgment in software capitalization. Build a project tracker where each time entry is tagged to a phase (Preliminary / Application Development / Post-Implementation) and the phase transitions are approved by a named individual. The audit trail for phase changes is what auditors want to see.
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The Software Development Cost Schedule schedule is architected and ready to be connected to your transaction data.
Balance Sheet
Pension & Post-Retirement Benefit Schedule
Funded status, net periodic benefit cost, and AOCI rollforward
ASC 715
Purpose
For defined benefit pension and other post-retirement plans: the funded status (fair value of plan assets minus projected benefit obligation) is recognized on the balance sheet. Net periodic benefit cost has six components: service cost, interest cost, expected return on assets, amortization of prior service cost, amortization of actuarial gains/losses, and settlement/curtailment effects. Actuarial assumptions (discount rate, expected return, mortality tables) drive the PBO.
Key Inputs
Actuary report (PBO, service cost, interest cost, actuarial gains/losses), plan asset statements, contributions made, demographic data.
Primary Outputs
Funded status on balance sheet, net periodic benefit cost components, AOCI rollforward (unrecognized actuarial G/L and prior service cost), sensitivity analysis for discount rate and expected return, corridor method vs. immediate recognition election.
Architecture Note
Pension accounting requires an actuary — PHAROS should store the actuarial assumptions as inputs and compute the net periodic benefit cost from them, so the roll-forward is automatic once the actuary delivers the annual valuations. Build integration for actuary report upload.
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The Pension & Post-Retirement Benefit Schedule schedule is architected and ready to be connected to your transaction data.
Specialized
Extractive Industries Schedule
Proved reserves, depletion, and exploration cost accounting
ASC 932
Purpose
Tracks proved oil, gas, and mineral reserves (required supplemental disclosure for public companies). Depletion is computed using units-of-production based on estimated total proved reserves. Exploration costs are either expensed as incurred (successful-efforts method) or capitalized (full-cost method) depending on accounting policy election. Ceiling test impairment applies under the full-cost method.
Proved reserve quantities rollforward (revisions, extensions, production, purchases/sales), depletion rate per unit, ceiling test calculation (full-cost), exploration costs expensed vs. capitalized.
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Specialized
Real Estate Sales & Contributions Schedule
Nonfinancial asset sales and gain/loss recognition
ASC 610-20
Purpose
Under ASC 610-20, gains/losses on sales of nonfinancial assets (including real estate) are recognized when control transfers to the buyer — generally at closing. Installment sales, sale-leaseback transactions, and contributions of nonfinancial assets each have specific recognition rules. Sale-leaseback accounting under ASC 842 requires determining whether the transaction qualifies as a sale.
Key Inputs
Purchase and sale agreements, closing statements, sale-leaseback agreements, appraisals.
Primary Outputs
Gain/loss on sale by property, sale-leaseback classification (sale vs. financing), installment sale receivable balance and recognized gain, contributions recorded at fair value.
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The Real Estate Sales & Contributions Schedule schedule is architected and ready to be connected to your transaction data.
Reconciliation
Special Termination Benefits Schedule
One-time and contractual termination benefit recognition
ASC 712
Purpose
Distinguishes between special termination benefits (offered for a short period in connection with a specific event — recognized when accepted and estimable) and contractual termination benefits (required by a plan, agreement, or statute — recognized when it is probable employees will be entitled and the amount can be estimated). Links to the restructuring schedule for exit cost plans.
Key Inputs
Termination benefit agreements, headcount reduction plans, acceptance rates, legal obligations under employment contracts or CBAs.
Primary Outputs
Termination benefit liability by category, expense recognized in income statement, cash paid, remaining liability.
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The Special Termination Benefits Schedule schedule is architected and ready to be connected to your transaction data.
Select Accounts
Check accounts to include. Selecting a parent includes all sub-accounts.
Bank Accounts
Manage Accounts
Reorder the account cards, or hide ones you don't need to see day-to-day —
hiding never touches the account or its transactions, just whether the card shows here.
Upload Transactions via Excel or CSV
Drag & drop your file here, or click to browse Required columns: Date, Description, Account Number, Account, Category, Bank, Amount
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Description
Acct #
Account
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Bank
Amount
Actions
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Import Transactions
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Date
Description
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Amount
Running Bal.
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Client Documents
Organize each client's documents into folders — upload files for them to see, and view what they upload for you.
Customers
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Customer
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State
Invoices
Total Revenue
Last Invoice
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Add Customer
Tax Client Information — optional, encrypted at rest, admin only
Rate Sheet — override the default rate per service for this client (blank = use default)
Add Vendor
Add Transaction
Select a COA account — number and name auto-fill from your Chart of Accounts.
Use Petty Cash for small cash transactions, Suspense if the account is unknown.
New Bank Account
New COA Account
Add Bank Account
Add a bank account to track transactions. Plaid auto-import coming soon.
Upload Bank Statement (PDF)
We extract the transactions from the statement so you can review and post them. The original PDF is retained as the reconciliation's source document. You can select several PDFs at once — they'll all post to the bank account chosen below.
Review Statement Lines
Correct anything the parser got wrong before posting. Nothing is added to your ledger until you click Post & Reconcile.
Date
Description
Amount
Action
Matches ledger
Bank Reconciliation
Reconcile each bank account's ledger cash balance to the bank statement. Cleared items are locked once a reconciliation is completed.
📥 Statement Inbox
Forward bank statements to your intake email, then pull them in here.
Tie Reimbursement Payment
Pick the bank transaction that paid this back to the owner. It's re-categorized to Accounts Payable to clear the payable — no new transaction is created. Target: —
Work in Progress
Agreed-upon work by customer. Track the job, assign it, add the services to be billed, and move it through to invoiced & paid.
New WIP Job
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Product / Service
Description
Qty
Rate
Amount
Done
Total: $0.00
Signing link
Create Invoice
Bill this job’s completed services. It will be submitted for a manager’s approval before it can post to the ledger or be sent.
Contract
Variables like [[Customer Name]] fill in from the job's customer & today's date — click Preview to see them resolved.
Chart of Accounts
Manage your account structure. Drag & drop to reorganize. Click any account number or name to edit inline.
Business Units
Business units append a 4-digit suffix to account numbers (e.g. 100000-0001). Leave unused if your company has no departmental segmentation.
Add Account
Fill in the details below to create a new account.
Default: first digit = type, 5 remaining digits auto-suggested. Add business unit suffix via Business Units tab.
⚠ Accounts marked as having sub-accounts cannot receive direct journal entries. An auto-created "— Other" sub-account will be added to capture miscellaneous postings.
—
Add Business Unit
Business unit codes are appended to account numbers as a 4-digit suffix.
Link to a subsidiary in your Equity section. Transactions from that subsidiary will roll up under this business unit.
100000-0000
Edit Account
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Promote to Top-Level
Toggle Sub-Account Mode
Delete Account
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Section
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PHAROS
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Add Equity Owner
Enter the entity's consolidation code and their equity percentage to add them to your ownership structure.
Select the invoice this payment applies to. The invoice will be marked paid and linked to this transaction.
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Amount Applied
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Link Transfer
Transfers between accounts cancel out — no IS or BS impact. Pick the account the money moved to/from, then choose the matching transaction to link them.
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Split transaction
Divide this one transaction across two or more categories. The amounts must add up to the transaction total; only one row still shows in your list, and hovering it reveals the split.
Send Invoices
Change Category
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Annotate Transaction
From Accounting
Manage Investment Partners
Add New Partner
Add Partner / Owner
Identity
Equity Ownership
Net Income Allocation
Investment Client
This partner will appear in the Investment Clients section with transaction tracking
