At G-Squared Partners, we’ve seen a growing demand from businesses looking for support in getting their financials audit-ready. More and more companies—particularly those backed by venture capital and private equity—are realizing that an unprepared audit can lead to costly delays, financial restatements, and strained relationships with lenders, investors, and auditors.
That’s why we thought it would be valuable to explore this topic further in our recent webinar, where we were joined by experts from two leading CPA firms to discuss the challenges and opportunities in audit preparation.
Based in Philadelphia, Ryan works with clients across various sectors, providing insights into financial reporting, regulatory compliance, and best practices for audit preparation.
With years of experience in public accounting, he understands the challenges that firms face in ensuring audit readiness and the role that outsourcing can play in improving efficiency and accuracy
Chris Meshginpoosh is the Managing Partner at Kreischer Miller, a leading CPA firm based in the Philadelphia area that specializes in serving privately held businesses.
Chris has extensive experience in financial reporting and audit engagements, particularly for middle-market businesses. His firm works closely with clients to ensure they are equipped to meet their financial reporting obligations while optimizing their operations for long-term success.
Want to watch the on-demand webinar? You can do so right here. But if you only have a few minutes and want to focus on some of the highlights from our conversation, we’ve summarized the key insights below.
Audit firms today face mounting challenges that make it increasingly difficult to deliver efficient, high-quality engagements. One of the biggest obstacles is client readiness. Many businesses assume they’re prepared for an audit simply because they’ve closed their books, but as Chris explained, that’s rarely enough.
“Companies think, ‘We closed the books, we’re ready.’ But auditors focus on high-risk areas like estimates and business combinations. If those aren’t addressed, audits get delayed.”
Without the right preparation, auditors often find themselves waiting on clients to finalize key financial details, leading to inefficiencies and missed deadlines. Compounding the issue is the growing complexity of accounting standards. As regulatory requirements evolve, businesses struggle to stay ahead, and many lack the internal expertise to properly evaluate and apply new rules. Ryan explained how this often leads to unnecessary delays:
“Clients don’t always have the resources to evaluate and apply new standards. That leads to delays and corrections.”
This problem is especially pronounced for high-growth companies dealing with complex financial structures, where mistakes in revenue recognition, stock-based compensation, or financing arrangements can significantly impact financial statements.
At the same time, the accounting profession is facing a well-documented talent shortage. Fewer young professionals are entering the field while experienced accountants are retiring, leaving firms stretched thin. This puts significant pressure on internal teams, especially during busy season. With so many obstacles in play, firms are increasingly turning to outsourcing as a solution, but the key to success lies in taking the right approach.
By bringing in external experts, companies can ensure their financials are fully prepared before auditors arrive, minimizing delays and avoiding costly last-minute corrections.
A key benefit of outsourcing is its ability to improve audit readiness throughout the year, rather than scrambling at year-end. Gene explained how G-Squared Partners approaches this with clients:
“We close our clients’ books every month as if they were getting audited. That way, when the actual audit comes, there’s no extra work—we’ve already ensured everything is in order.”
Outsourcing also plays a critical role in handling complex accounting issues that many internal teams aren’t equipped to manage. Revenue recognition, stock-based compensation, and financing arrangements often require specialized expertise that goes beyond standard bookkeeping. When these issues aren’t addressed properly, audits can grind to a halt. Ryan Carrozza emphasized why this is so important:
“When there’s a technical accounting issue, auditors need to see that management has taken the first step in evaluating it. If they don’t have that expertise internally, they need to engage outside support.”
Chris echoed this sentiment, commenting: “If our clients use an outsourcing partner like G-Squared, it keeps audits on track. Instead of dealing with delays, we get what we need when we need it.”
Of course, one issue many auditors face when it comes to audit readiness is maintaining independence. While CPA firms want to help clients navigate complex accounting issues, they are limited in how much direct assistance they can provide. Strict independence rules prevent auditors from making accounting decisions for their clients, meaning businesses must take the first step in evaluating complex transactions.
By engaging an external financial team, companies can ensure that issues are properly assessed before auditors step in. As Ryan explained, firms must demonstrate that management has made a good-faith effort to apply accounting standards before auditors review their conclusions.
Outsourcing audit preparation doesn’t just help audit firms maintain independence and prepare for a smoother audit process: it also provides a number of benefits for the business that’s being audited.
Many companies lack a full-time technical accounting expert, but they do need someone who can navigate complex financial issues as they arise. Whether a company needs support for monthly close processes, technical accounting guidance, or financial reporting, outsourcing provides flexibility—offering expertise when needed without the expense of full-time hires. Gene described how this approach benefits high-growth businesses:
“A lot of companies think closing the books means they’re ready for an audit. But there’s a difference between closing the books, having support for those numbers, and actually being audit-ready. We make sure our clients are prepared year-round, so they don’t have to scramble when the auditors come in.”
For CPA firms, outsourcing audit preparation helps them keep engagements moving, while also offsetting some of the burdens placed on staff during busy season. Chris explained:
“Busy season stacks deadlines together, overwhelming staff. That stress leads to turnover and unpredictable staffing levels. If we can manage that better—by keeping workloads reasonable and leveraging outsourcing—we can improve employee retention and provide a better experience for clients.”
Choosing the right partner is essential for ensuring audit readiness and long-term financial stability. The ideal firm should offer more than just bookkeeping—it should provide technical expertise, industry knowledge, and a team-based approach to ensure continuity.
Industry experience is a key factor. As Ryan pointed out:
“Are you getting a person or a team? If it’s just one person and they leave, you’re back at square one. The right outsourcing firm has multiple people on your account, ensuring continuity and quality control.”
Beyond expertise, a good outsourcing partner should be proactive, flexible, and able to scale services based on the needs of your business. They should also work closely with auditors to prevent delays and resolve issues before they arise. By selecting a well-rounded, responsive partner, businesses can streamline their financial operations and make audits more efficient.
Looking for an audit preparation partner? The team at G-Squared Partners is here to help. We’ve helped numerous high-growth companies prepare for audits and work closely with leading CPA firms across the country to deliver timely, high-quality audit engagements that leave both clients and auditors alike satisfied.
Contact us today to learn more about how we can help.