Annual Audit: Five Ways to Save Time & Money
In M&A, credibility is currency. Buyers and investors lean heavily on audited financials to judge how disciplined and reliable a business really is. When the audit process is delayed, disorganized, or more expensive than it should be, it raises doubts that can stall or even sink a deal.
Ideally, an annual audit should take about three months to complete. If yours is dragging on longer, it not only drives up costs, but it also suggests deeper inefficiencies that executives, boards, and potential buyers will notice.
At a time when costs are already climbing, fueled by new standards, heavier internal control testing, and more complex IT environments, the last thing you want is to add bottlenecks on top. Lack of preparation is where most companies trip up—and where costs snowball.
The good news is there are steps you can take to keep the process moving and the costs down.
Here are five ways to do it:
- Own the Process
Many assume the auditors are running the audit, but that’s not their job. Their role is to test your numbers and issue an independent opinion. Your role is to keep the process moving. That means having clean statements ready, staying on top of requests, and setting a steady rhythm of check-ins. The more of the process you manage, the faster it will go and the lower your costs.
- Engage Your CEO in the Process
Nearly a third of finance executives cite lack of upper management backing as one of their biggest audit challenges.* A CEO who’s engaged signals commitment from the top, keeps departments aligned, and reinforces that the audit is a company-wide responsibility. They don’t need every detail, but they do need enough visibility to manage issues and stay in control. That level of involvement brings authority, accountability, and momentum to the process.
- Talk to the Auditor Beforehand
Open the conversation with the auditors before the audit begins about ways you can prepare more effectively, keep costs down, and streamline the process. Agree up front on which tasks your team can handle—like preparing schedules, tying out balances, or pulling supporting documentation. By doing this, you shift work off the auditor’s plate and onto yours, where it can be done faster and cheaper. It also sets the tone for the relationship—collaborative instead of transactional—which makes the whole engagement run more smoothly.
- Tell Your Story (Before Someone Else Does)
Don’t leave it to the auditors to piece together your financial story. Take ownership by making sure your statements are accurate, your disclosures are complete, and any gray areas are explained in advance. That could mean tightening the language in your financial statement footnotes, drafting a short technical memo, or flagging how new accounting standards apply to your business. When you give auditors a clear, consistent story, they spend less time questioning, correcting, or rewriting—saving time and money.
- Learn From the Past and Use it to Your Advantage
Philosopher George Santayana once said: “Those who cannot remember the past are condemned to repeat it”—and we agree. Approach this year’s audit by reviewing last year’s. Where did things slow down? What caused confusion? If revenue testing was a trouble spot, for example, run a quick pre-audit of your largest transactions and pull all supporting documentation now. Apply the same approach to any other bottleneck from last year.
A clean, timely audit sends the message that your business runs on discipline, not disorder. Preparation is the difference between an audit that drags and one that gets done. With a team of senior-level financial executives, CFO Consulting Partners brings firsthand experience from the audit side of the table. We help you prepare, manage, and streamline your audits so you finish on time, control costs, and strengthen credibility with boards, investors, and potential buyers.
* https://www.oracle.com/a/ocom/docs/applications/erp/aberdeen-research-report-emea.pdf