PHAROS — Payroll, HR, Accounting & Reporting Operating Software

Revenue MTD

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Expenses MTD

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View transactions →

Net Profit MTD

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Pending Review

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Revenue vs Expenses & Profit

Last 6 months — hover for details

Revenue

Expenses

Profit

Expense Breakdown

Current period

Accounts Receivable Aging

Accounts Payable Aging

Recent Transactions

Date	Description	Account	Category (click to edit)	Bank	Amount	Receipt	Review

Journal Entries

Create, review, and approve adjusting entries before posting to the general ledger

Partner & Owner Equity

Balances pulled live from transaction repository — ties directly to the Balance Sheet

100%

Subsidiary

Full consolidation

50% – 99%

Proportional

Pro-rata consolidation

20% – 49%

Equity Method

Share of net assets

< 20%

Cost Method

At acquisition cost

Companies We Own

Entities this company holds an equity interest in

Owners of This Company

Individuals or entities that hold an ownership stake in this company

Vendors

Manage vendor records, payment terms, and AP balances

Total Vendors

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Active

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Open AP Balance

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1099 Required

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Vendor	Contact	Terms	Category	1099	Open AP	Status

Bills

AP workflow — intake, review, approval, and posting

Merci Files

Share documents with your clients and review their uploads

Total Clients

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Files Shared

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Client Uploads

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Pending Review

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⚠ Danger Zone

These actions are permanent and cannot be undone.

Delete This Business

Permanently deletes all transactions, invoices, customers, vendors, bills, and files associated with this business. This action cannot be reversed.

Type the business name to confirm

My Profile

Update your login email, display name, and password.

First Name

Last Name

Login Email

Change Password

Leave blank to keep your current password.

Current Password

New Password

Confirm New Password

General Settings

Manage your company profile and preferences.

Company Name

Fiscal Year End

Currency

Date Format

Time Zone

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.

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, set permissions, and invite new users.

Admin

Full access — all modules, settings, user management, delete

Preparer

Full accounting, invoices, bills, reports. No user management or delete

Associate

View transactions, review bills, upload files. No financial edits

Reviewer

Read-only access to all reports and transactions

Client

Merci Files only — upload documents, view firm uploads

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Integrations

Connect third-party services to PHAROS.

🔌

Integrations

Connect your bank, payment processor, CRM, and more. Coming soon.

Security

Two-factor authentication, login history, and session management.

🔒

Security Settings

Enable 2FA, review active sessions, and manage API keys.

Email (SMTP) Settings

Configure your outgoing email so invoices are sent from your own address.

Gmail users: Use smtp.gmail.com port 587 and generate an App Password (requires 2FA enabled).

SMTP Host

Port

Username

Password / App Password

From Address

From Name

🕒 AP Bill Intake Email (IMAP)

PHAROS will poll this inbox for vendor bills. Emails and attachments are parsed automatically and added to the Bills inbox for review. Use a dedicated AP address like ap@yourdomain.com.

IMAP Host

IMAP Port

AP Email Address

Password / App Password

Mailbox / Folder

Poll Frequency

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.

Accrued Revenue

CR when invoice created. DR when payment clears to revenue.

Default Revenue Account

CR when payment applied (if line item has no specific account).

Default Cash Account

DR when bank payment received (Plaid transactions).

Accounts Payable

CR when bill created. DR when bill payment made.

Invoice Template

Customize how your invoices look when sent or downloaded. Changes apply to all future invoices.

Branding

Firm / Business Name

Tagline

Address Line 1

Address Line 2

Phone

Email

Website

Appearance

Accent Color

Font

Layout

Header Layout

Footer Note

Live Preview

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: 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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Balance Sheet

PP&E Rollforward

Beginning balance + additions − disposals − transfers = ending balance

ASC 360 / ASC 805

PP&E Account

Accum. Depr. Account

CIP Account

Proceeds / Cash Account

Gain on Sale Account

Loss on Sale Account

Balance Sheet

Accumulated Depreciation Schedule

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.

Key Inputs

Asset register (type, acquisition cost, date, useful life, remaining life), amortization method, impairment test results.

Primary Outputs

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.

Key Inputs

Vendor invoices / payment dates, service periods, GL prepaid account balance.

Primary Outputs

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.

Key Inputs

Lease agreements, commencement dates, payment schedules, IBR at commencement, renewal options assessed, variable lease payments.

Primary Outputs

ROU asset rollforward, lease liability rollforward, operating lease cost, finance lease amortization + interest, maturity analysis (5-year schedule + thereafter).

Architecture Note

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).

Key Inputs

Beginning equity balances, net income, dividends declared, OCI items (FX translation, unrealized securities, pension), stock issuances, repurchases, stock-based comp expense.

Primary Outputs

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.

Balance Sheet

Inventory Rollforward

Beginning balance + purchases − COGS = ending balance, with reserves

ASC 330

Purpose

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

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Current (0–30)

—

31–90 Days

—

91+ Days

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DSO

—

CECL Allowance Rates (ASC 326)

Current (0–30)

%

31–60 Days

%

61–90 Days

%

91–120 Days

%

120+ Days

%

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

Total Open AP

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Current (not yet due)

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Past Due

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Vendors with Open AP

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As of:

Vendor ▾	Current	1–30	31–60	61–90	91–120	120+	Total	DPO

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

Start Date

End Date

Start City

ST

End City

End ST

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.

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

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Services

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Products

—

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Sales

Invoices

Create, send and track client invoices

Outstanding

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Overdue

—

Paid (YTD)

—

Draft

—

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Payroll & HR

Employees & Contractors

W-2 employees and 1099 independent contractors

W-2 Employees

—

1099 Contractors

—

Total Payroll

—

1099 Payments YTD

—

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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.

Key Inputs

Payroll registers, 941 filings, W-2 data, GL payroll accounts.

Primary Outputs

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.

Key Inputs

Executed contracts, performance obligations identified, standalone selling prices, billing schedules, satisfaction triggers.

Primary Outputs

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.

Key Inputs

Commission amounts by contract, contract terms, expected customer life, practical expedient elections.

Primary Outputs

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.

Key Inputs

Book-to-tax schedule (temporary differences), applicable tax rates by jurisdiction, NOL carryforwards, valuation allowance analysis.

Primary Outputs

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.

Schedule Engine — Build Queue

The Tax Provision & ETR Reconciliation schedule is architected and ready to be connected to your transaction data. Click below to start building this schedule into PHAROS.

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.

Schedule Engine — Build Queue

The NOL & Credit Carryforward schedule is architected and ready to be connected to your transaction data. Click below to start building this schedule into PHAROS.

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.

Schedule Engine — Build Queue

The Uncertain Tax Positions (ASC 740-10) schedule is architected and ready to be connected to your transaction data. Click below to start building this schedule into PHAROS.

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.

Schedule Engine — Build Queue

The State Apportionment schedule is architected and ready to be connected to your transaction data. Click below to start building this schedule into PHAROS.

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.

Key Inputs

Intercompany reconciliation results, equity in subsidiaries (investment account), intercompany dividends paid.

Primary Outputs

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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The Consolidation Eliminating Entries schedule is architected and ready to be connected to your transaction data. Click below to start building this schedule into PHAROS.

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).

Primary Outputs

Translated trial balance, CTA rollforward by entity, AOCI component, hyperinflationary entity identification.

Schedule Engine — Build Queue

The FX Translation (ASC 830) schedule is architected and ready to be connected to your transaction data. Click below to start building this schedule into PHAROS.

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.

Key Inputs

Subsidiary net income, NCI ownership percentage, NCI dividends, subsidiary OCI items.

Primary Outputs

NCI beginning balance, NCI share of net income, NCI distributions, NCI ending balance (feeds consolidated equity rollforward).

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The Non-Controlling Interest Rollforward schedule is architected and ready to be connected to your transaction data. Click below to start building this schedule into PHAROS.

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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The Goodwill Schedule schedule is architected and ready to be connected to your transaction data. Click below to start building this schedule into PHAROS.

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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Fair Value

Fair Value Measurement Schedule

Level 1 / 2 / 3 hierarchy, valuation techniques, and significant assumptions

ASC 820

Purpose

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.

Key Inputs

Investment statements, third-party appraisals, pricing services, Black-Scholes inputs for warrants/options, discounted cash flow models (for Level 3), comparable transaction data.

Primary Outputs

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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Balance Sheet

Liability vs. Equity Classification Schedule

Mandatorily redeemable instruments, SAFEs, convertible preferred, warrants

ASC 480 / ASC 815

Purpose

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.

Primary Outputs

Classification analysis by instrument (liability / mezzanine / permanent equity), carrying value, remeasurement requirements, EPS impact (diluted share count).

Architecture Note

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.

Key Inputs

Loan agreements, origination fees and costs, payment histories, credit quality indicators, TDR identification.

Primary Outputs

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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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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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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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.

Key Inputs

Reserve engineer reports, production data, lease operating costs, dry hole costs, proved undeveloped reserve status.

Primary Outputs

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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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.

Bank Accounts

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

All Transactions

	Date	Description	Acct #	Account	Category	Amount	📎	Review	Actions		Balance

Customers

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Customer	Email / Phone	State	Invoices	Total Revenue	Balance Due	Last Invoice
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📄

Section

This module is ready to be built out.

The ERP built byan accountant,for everyone

Automated Reconciliation

Multi-Entity Consolidation

Payroll & HR

Financial Reporting

Invoicing & Collections

Audit Trail & Controls

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Revenue vs Expenses & Profit

Expense Breakdown

Accounts Receivable Aging

Accounts Payable Aging

Recent Transactions

Add Vendor

⇩ From Client

⇧ Sent to Client

⇧ Upload Documents

⇩ From Your Accountant

Upload Document

⚠ Danger Zone

My Profile

Change Password

General Settings

Consolidation Settings

Allow Consolidated Access

Require Approval for New Consolidations

Include in Intercompany Eliminations

Is Consolidated Entity

Billing & Plan

Users & Roles

Invite User

Integrations

Security

Email (SMTP) Settings

🕒 AP Bill Intake Email (IMAP)

Account Mapping

Invoice Template

Sidebar Visibility

Split Transaction

Add Vendor Bill

Select Accounts

Upload Transactions via Excel or CSV

All Transactions

Edit Transaction

Add Transaction

Add Bank Account

Chart of Accounts

Add Account

Add Business Unit

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Add Equity Owner

The ERP built by
an accountant,
for everyone