This time of year, CFOs and their teams shift focus toward completing year-end close and preparing for the annual audit. For private equity-owned businesses, audits often come with unique challenges—whether it’s navigating a first-year audit, addressing complexities from recent M&A activity, or managing the impacts of rapid growth. However, without proper planning or the right expertise and support, the audit process can be time-consuming and shift key team members away from core responsibilities and value-creation initiatives.
Preparation is essential for reducing audit-related stress and avoiding costly delays. By addressing potential audit risks ahead of time, businesses can minimize disruptions and focus on core operations during audit season.
A proactive approach to audit readiness helps:
Palm Tree’s audit readiness services focus on four critical areas: assessing existing accounting policies, improving processes, ensuring reporting compliance, and leveraging an integrated team support structure. Addressing accounting infrastructure, enhancing compliance processes, and strengthening reporting practices can transform the audit experience from a reactive process to a proactive strategy.
Before auditors begin their review, Palm Tree evaluates your current accounting infrastructure. This includes examining financial records and reporting systems and interviewing key personnel to identify potential areas of risk. We provide an assessment report highlighting audit risks—ranked from low to critical—to help management prioritize remediation efforts. A well-developed project plan ensures that key gaps are addressed before auditors arrive.
Accurate financial statements depend on sound accounting policies and processes. Palm Tree helps establish new processes and internal controls that detect and prevent errors. We ensure that updated accounting policies align with US GAAP standards and that supporting documentation is thorough and well-organized. Common focus areas include revenue recognition, business combinations, leases, stock-based compensation, and impairment testing.
Accurate financial reporting is crucial for both internal decision-making and external compliance. We ensure that financial results are properly reflected in monthly, quarterly, and annual statements. We draft compliant financial statements and footnotes in line with US GAAP, preparing your business for an auditor review. Our team also helps explain the impact of accounting issues on key operational metrics.
Audit preparation can stretch internal resources. Palm Tree provides short-term staff augmentation to help your accounting team manage complex audit-related tasks. Our experienced professionals liaise between auditors and internal teams, reducing the risk of last-minute surprises and ensuring efficient coordination.
Palm Tree’s accounting advisory team specializes in audit readiness and gives management confidence in their financial statements—before, during, and after the audit season.
Contact us today to prepare your business for this year’s audit season.