Biotech & Life Sciences
Accounting for (bio)technology
Laurentian has extensive experience assisting biotech and life sciences firms with their particular accounting needs. From dealing with the enhanced regulatory environment, complex revenue recognition rules and licensing deals, tax credits and grants, we have seen our share of management challenges.
We invite you to put our experience to work for your biotech or life sciences company, and see what a difference it can be to partner with an accounting firm that understands the specific challenges of your space.
Staying on top of your financial management
Biotech and life sciences companies are notorious for burning through precious cash before their efforts pay off. Therefore, efficiently managing your capital can mean the difference between success and failure. We have lived in this intensive environment, and we understand the difficult choices that you sometimes have to make. By helping you prepare a realistic budget, we know that you’ll have a much better handle on managing your business.
For those of you looking to sell either your technology or your company itself, the integrity of your financial and accounting practices will go a long way to increasing the confidence of investors, lenders, partners and potential buyers. Frankly, anything less than best practices in this area can significantly impact the credibility of your firm.
Additionally, having a reliable system of internal controls will help protect your company’s intellectual property. When trying to close a financing, arrange a strategic partnership or complete a merger, few things can be worse than having disorganized or incomplete financial records.
Ultimately, maintaining financial control of your research projects is critical not only to your investors, but also to the health of the company itself.
Recognizing revenue recognition issues
As an example of the many challenges faced by biotech firms, revenue recognition is frequently one of the trickiest areas of accounting, and it is even more complex for biotech and life sciences companies. Upfront fees, milestone payments and multi-year collaborative arrangements all contribute to the well-known difficulty of applying the revenue recognition rules.
Establishing an effective written revenue recognition policy and ensuring that key employees understand the impact their actions have on the proper recording of revenue is imperative to effectively managing revenue.
At Laurentian, we partner with your team to support your growth plans. Talk to us about how we can help position you and your company for long-term success