Offering an equity plan is a significant benefit helping your company to advance your talent strategy. The ability to properly forecast every part of your budget is critically important to the financial success of your company. But, how exactly does your equity plan administration and forecasting go hand-in-hand? Here's a few things to consider:

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Expensing

Accurate accounting of award expense is imperative. You want to ensure the impact to your financial statements is understood prior to issuance. To do this properly, you need to ensure the correct calculation of fair value and amortization over time showing the impact of these expenses on stock-based compensation. Fair value calculations must also be correct to forecast value at a later date.

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Audits

It's inevitable you will get audited. Being prepared to provide proof that your expenses reflect true numbers makes this process a lot less stressful. The ability to drill down into your reported numbers and the calculations used in your financial reporting, means you'll be confident every number reported is certain and verifiable.

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Compliance

Ensuring compliance with US GAAP and IFRS 2 accounting standards provides certainty that your financial statements are accurate and easily understood. Avoid the concern of having to adjust or restate your financial disclosures by taking necessary compliance steps and planning now and well into the future.

Outsourcing your equity plan administration to the right provider allows you to forecast the right way, letting you more accurately budget your hard-earned dollars and prioritize your company spend where it's needed most.

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