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 Payments software vendor AvidXchange is beefing up its accounting resources to develop more effective controls and procedures for financial reporting. In its Form 10-Q for the first quarter ended March 31, the company said its executives conclude more work was needed, but also concluded the report conformed to U.S. GAAP.

This follows a previously disclosure for the year ended December 31 that were “material weaknesses in our internal control over financial reporting.” A major reason for the report about 2021 was the company lacked enough staff with the right accounting knowledge to handle financial reporting. “This material weakness contributed to an additional material weakness as we did not design and maintain effective controls over the preparation and review of the statement of cash flows,” the document stated. These weaknesses led to “material misstatements in preferred stock, additional-paid-in-capital accounts, and the classification of cash flows from operating and investing activities” for the year ended Dec. 2019, whose financial statements had to be restated. The company also found immaterial mistakes in a variety of areas for the years 2020 and 2021 Besides adding technical accounting resources, AvidXchange said it will engage third-party resources as a supplement where needed. “We will continue to design and refine adequate review procedures and implement improved processes and controls related to the statement of cash flows,” the 10-Q reported.

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