NOW Analytics GAAP Align Spark Shift Energy Solutions

Summary

The analysis of the accounting practices of Spark Shift Energy Solutions revealed several areas requiring improvement to ensure compliance with GAAP (Generally Accepted Accounting Principles) and alignment with industry standards for electrical contractors (NAICS 238210). Key observations span across the Chart of Accounts, Balance Sheet, and Profit and Loss Statement, highlighting issues such as misclassified accounts, inconsistent revenue and expense reporting, missing depreciation, and insufficient disclosures for liabilities and related party transactions. Additionally, the reports lack clarity in the categorization of direct costs, which is critical for project-based businesses like electrical contracting. Recommendations include reclassifying ambiguous accounts, implementing consistent reconciliation processes, enhancing transparency in reporting, and expanding account structures to better track materials, subcontractor payments, and labor costs. Addressing these gaps will improve financial accuracy, enhance compliance, and provide a clearer picture of the company's financial health for decision-makers and stakeholders.