How EGYM stays audit-ready with Ledgy’s robust financial reporting
“Ledgy is a central part of our ‘fast-close’ strategy. Without it, we would take much more time to reconcile the data, but now, we are confident in the accuracy of our reports while still being able to close quickly.”
About EGYM
EGYM is a vertically integrated market leader in the fitness and health industry with the vision of transforming healthcare from repair to prevention. EGYM partners with companies to improve employee health by providing access to fitness and health facilities and equips those facilities with smart gym equipment and digital solutions to offer an AI-driven workout experience for people of all skill levels. Corporates benefit from reduced healthcare costs and increased productivity, and clubs from a growing membership base that stays engaged.
About Volker Adam
Volker Adam is Senior Director of Finance at EGYM. He joined the company 3 years ago and is responsible for global accounting, audit and taxes. As one of EGYM’s goals is to become IPO-ready in the next few years, Volker is leading their efforts to transition the company from German GAAP to IFRS 2 expensing.
Moving from German GAAP to IFRS
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EGYM is a company with a long history and ambitious goals for the future. As part of their goals towards IPO-readiness, Volker and his team needed to switch from accounting under German Generally Accepted Accounting Principals (GAAP) to accounting under the International Financial Reporting Standards (IFRS). “We adopted IFRS for the first time with our consolidated financials for the year 2022. Given we had such a long history, with lots of options and funding rounds at this point, we knew we needed a dedicated financial reporting software. That’s when we found Ledgy” says Volker.
After having managed their employee equity on spreadsheets, EGYM was glad to make the switch to a dedicated platform for reporting and employee communications related to equity. “IFRS 2 reporting was our key motivation for choosing Ledgy and our must-have requirement. We do also expect that the closer we get to an exit, the more questions we will get from employees about their equity, so we appreciate Ledgy’s employee dashboard as well.” says Volker. “Ledgy was the most user-friendly tool we evaluated. This was a clear differentiator that outweighed the other tools in the market.” he continued.
Even with their long history, Volker found that onboarding to Ledgy went smoothly. “We had great support from our Customer Experience manager even though we have quite some complexity. It went well and the support was wonderful.” he says.
Audit-ready anytime
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Once onboard, Volker has found that having their data all in one place is very helpful so they can get the reports they need quickly. “The data is just sitting there, all we need to do is input our assumptions and the IFRS 2 expensing report is generated instantly.” he says. They were also happy to have passed an audit with Ledgy’s calculations. “In 2023, we used Ledgy’s IFRS 2 reporting for the first time, and this was a proof of concept with our auditors. They confirmed Ledgy’s calculations and we passed the audit.” Volker says.
Thanks to Ledgy’s financial reporting, Volker and his team feel more confident in their ability to meet deadlines with accurate reports. “Our financial reporting with Ledgy is robust and stable.” Volker says. “Ledgy is a central part of our ‘fast-close’ strategy. Without it, we would take much more time to reconcile the data, but now, we are confident in the accuracy of our reports while still being able to close quickly.”
Time saved and risk reduced
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When it comes to IPO-readiness, closing quickly and confidently is essential. “As a private or public company, you need to limit the risks related to manual errors. Having a tool like Ledgy in place does exactly that. Ledgy helps to ensure that reporting deadlines are met, with very limited risk.” says Volker.
While they switched to Ledgy at the same time that they adopted IFRS 2 standards for the first time, Volker is confident in the efficiency of Ledgy’s financial reporting, and the time it saved him and his team. “Compared to a spreadsheet solution, you would save significant time when switching to Ledgy.” says Volker.
As early adopters of Ledgy’s IFRS 2 reporting, Volker and his team are happy with the results so far, and excited about the future developments that are to come. “We’ve had very constructive conversations early on when it came to financial reporting. We’ve continued to have positive exchanges with Ledgy’s product team and Head of Financial Reporting and are excited about more developments that will continue to make financial reporting even easier for us.” he says. “We do our audit on a yearly basis, so I am excited to use the new functionalities that have been introduced since our last audit for the next one.”
A bright future for EGYM and employees
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Next on their agenda is to onboard employees to Ledgy to engage and communicate with them about their equity. “We’ve recently onboarded our People Management team to Ledgy in preparation to add our employees. Everyone using Ledgy says it is very user-friendly and intuitive. I think employees will like it and it will be positive for the company to have everyone on Ledgy.” Volker says.
Read more stories about Ledgy’s customers here.
