When Auditing Firms Can't Help, Small Public Companies Are Turning to Outsourcing

Online, June 11, 2013 (Newswire.com) - Small-cap and mid-cap public companies are faced with a wide array of accounting challenges on a regular basis. It would be nice if these companies' auditing firms were always available to help out, but the law dictates that this is not the case. The fact is that regulatory and independence restriction requirements may keep auditing firms from stepping in during a crisis. At these times, public companies either have to solve their challenges themselves using in-house personnel or go outside the company for assistance.

One solution is to engage the services of an external advisory firm with the expertise to serve as an effective Chief Financial Officer by itself or to assist the full-time CFO. For example, NYC-based Chord Advisors was created to sit between a small- or mid-cap public company and its auditing firm. Chord is capable of performing accounting projects the company may not have the in-house expertise to accomplish and that its auditing firm is precluded from doing. Chord's outsourcing can be accomplished much more cost-effectively than if staff were hired by the company full-time.

Chord has the expertise to assist companies with 10-K's, 10-Q's, reverse mergers and converting financial statements to GAAP. In addition, Chord can introduce companies to sources of financing and potential board members. Finally-if Chord is sufficiently comfortable with a company, its financials and its management-it will sign its financial statements as the company's CFO.

Founded in 2012, Chord has racked up an impressive string of successes in its first year. For example, for a public biotech company, Chord prepared an accounting analysis related to convertible debt with detachable warrants including citations from the current literature to support complex financing utilizing warrants; evaluated all complex debt/equity instruments for imbedded derivatives; and prepared journal entries for the transactions. For a public consumer marketing company, Chord prepared the 10-Q's and 10-K's for two years of delinquent filings, and evaluated complex accounting issues related to discontinued operations, preferred stock and acquisition of intangible assets.

For more information, please contact:
Enrique Briz
Dian Griesel Inc.
(212) 825-3210