Audit Prep for Scaleups: Build Trust and Win Deals

Fast-growing companies don’t usually lose deals because their product isn’t good enough. They lose deals because buyers and investors don’t fully trust the numbers.

I’ve watched scaleups hit a painful phase where growth creates complexity faster than the team can document it: revenue streams multiply, billing gets messy, stock control becomes “good enough”, and finance is perpetually a month behind. Then an audit requirement lands—sometimes earlier than expected—and suddenly you’re explaining basic controls to an external party under a deadline.

This post is part of our Governance, Regulation & Public Trust series, where the point is simple: strong governance isn’t bureaucracy. It’s how you earn confidence at scale. Audit preparation is one of the clearest, most measurable ways to build that confidence—internally, with investors, and with enterprise customers.

Why audit readiness is a growth (and marketing) asset

Audit readiness is a marketing asset because it turns a vague promise—“we’re well-run”—into something buyers and funders can verify.

When a procurement team, bank, or VC does diligence, they’re not only checking whether you’re compliant. They’re checking whether you’re predictable. Predictability is what gets you:

• Faster procurement cycles (fewer back-and-forth requests)
• Higher confidence in forecasts (and better funding terms)
• Less perceived operational risk (which affects valuation multiples)
• A brand reputation that signals maturity

A scaleup that can produce clean reconciliations, signed contracts, and a clear revenue recognition approach doesn’t just “pass audit”. It looks safer to partner with.

In 2026, that signalling effect matters even more. UK buyers are cautious, budgets are scrutinised, and governance questions often show up earlier in the sales process—especially in regulated sectors and larger contracts.

The 2026 audit thresholds: the numbers that can catch you out

If you’re scaling quickly, you can enter the audit cycle sooner than you expect—and once you’re in it, the expectation of quality goes up.

For financial years commencing on or after 6 April 2025, a UK business typically requires an audit if it meets two of the three criteria for two consecutive years:

• Annual turnover greater than £15 million
• Total assets greater than £7.5 million
• 50 or more employees on average

There are also businesses that require an audit regardless of size, and an audit can be required if shareholders holding at least 10% request one.

The “lease capitalisation” factor (from 1 January 2026)

From 1 January 2026, almost all commercial leases will need to be capitalised and recognised on the balance sheet, increasing gross assets. The practical outcome is that some firms will cross the assets threshold earlier than planned.

If you’re signing longer leases for offices, warehouses, studios, labs, or retail space as part of expansion, treat this as a trigger point: your audit timing may change even if revenue hasn’t.

Choosing an auditor: don’t buy a compliance commodity

Pick an auditor like you’d pick a strategic supplier, not like you’re buying stationery.

A good auditor will test your numbers, yes—but for a scaleup, the real value is that they help you understand what “audit-grade” looks like in your business model. That’s especially useful when you’re doing any of the following:

• Moving upmarket (annual contracts, multi-entity customers)
• Introducing usage-based pricing or revenue share
• Expanding internationally
• Taking on debt or preparing for a funding round

What to look for (beyond the logo on the letterhead)

You want technical competence, but you also want someone who can communicate clearly with founders and operators.

Use these practical selection criteria:

• Experience with your revenue model (SaaS, marketplaces, agencies, ecommerce, manufacturing)
• Comfort with fast change (new entities, new systems, acquisitions, restructures)
• A planning-led approach (risk assessment, timeline discipline, clear requests)
• Willingness to understand your processes (not just sample transactions)

If your auditor doesn’t ask curious questions about how you sell, deliver, bill, and collect—expect pain later.

Practical audit preparation: the “trust stack” checklist

Audit prep is mostly not clever accounting. It’s operational hygiene, documented properly.

The fastest route to audit readiness is to build a “trust stack”: clean books, traceable evidence, reconciled balances, and controls that match your risk.

1) Get your core records audit-ready (not just up to date)

The goal isn’t simply having transactions recorded. It’s being able to explain them.

Audit-ready core records include:

• A detailed general ledger that matches your financial statements
• Clear mapping of revenue, costs, and balance sheet categories
• A consistent process for month-end close (who does what, by when)

A practical benchmark I like: if your finance lead is away for a week, can someone else still locate and explain the top 20 transactions by value that month?

2) Assemble supporting evidence before you’re asked

Auditors will request proof. The more you can provide quickly, the less the audit drags into leadership time.

Prepare and organise:

• Bank statements and loan agreements
• Customer and supplier invoices
• Receipts and expense policies
• Contracts (signed, with amendments and renewal terms)
• Historical records (don’t assume last year’s folder still exists)

Marketing angle that’s real: clean contract storage and approval trails don’t just help audits. They help renewals, reduce disputes, and make enterprise buyers more comfortable.

3) Reconcile balance sheet accounts monthly (and understand the “why”)

Monthly reconciliations are the backbone of audit confidence. Don’t wait until year end.

Reconcile key balance sheet accounts such as:

• Bank
• Debtors (accounts receivable)
• Creditors (accounts payable)
• Fixed assets
• Stock

A reconciliation isn’t complete until:

• The reconciling items are identified (timing vs error)
• Each item has evidence (invoice, statement, email approval)
• There’s an owner and a resolution date

This is where many scaleups get exposed: they have a spreadsheet reconciliation, but nobody can explain the aged items. That’s not a reconciliation; it’s a postponement.

4) Plan your year-end stock count like a product launch

If you hold stock, your year-end stock count is a high-friction moment. Treat it as an operational event with a runbook.

Practical steps:

• Set the date early and lock operational support
• Train staff on counting rules (what counts, what doesn’t)
• Prepare location maps and SKU lists
• Expect auditors to attend and perform sample counts

If stock accuracy is weak, it spills into margin credibility. And margin credibility is a trust issue with both investors and customers.

5) Use the “Prepared By Client” (PBC) list to control the audit

Your auditor should provide a Prepared By Client (PBC) list—a structured request list.

Don’t guess what they want. Ask for the PBC list early, then run it as a mini-project:

• Assign owners per request
• Set internal deadlines ahead of auditor deadlines
• Track status in a simple board (even a spreadsheet works)

Collaboration here is not optional. When the PBC list is run well, audits stop feeling like a fire drill.

6) Put one person in charge (even if finance is small)

Audits fail operationally when everyone is “helping” and nobody owns it.

Appoint a single internal point person to:

• Drive the timetable
• Collect information across departments
• Keep leadership informed of blockers
• Reduce repeated questions to the same stakeholders

Also brief your team on what an audit is and why you’re doing it. People cooperate when they understand the stakes.

Controls and processes auditors focus on (and why it matters for trust)

Auditors focus on risk: areas where mistakes or manipulation are more likely, or where estimates can materially change outcomes.

That overlaps heavily with what investors and sophisticated buyers worry about.

The big three: revenue, cash, and judgement calls

In most scaleups, the highest scrutiny falls on:

1. Revenue recognition: When do you recognise revenue—on invoice, delivery, usage, milestones?
2. Cash controls: Who can approve payments? Who can change bank details? Who has banking access?
3. Estimates and provisions: Stock provisions, bad debt provisions, deferred revenue, accruals

The smart move is to discuss these early with your auditor—before year end—so you don’t end up “negotiating accounting” once numbers are final.

Controls that look small but signal maturity

These controls are often quick wins that create disproportionate confidence:

• Dual approval for payments above a threshold
• Segregation of duties (even partial, in small teams)
• Documented approval workflow for discounts and credit notes
• Access controls for finance systems and banking
• Regular management review of reconciliations and aged debt

Strong controls don’t slow a scaleup down. They stop preventable chaos from stealing time.

After the audit: turn findings into credibility

An audit shouldn’t end with a sigh of relief. It should end with a prioritised improvement plan.

Auditors typically flag significant weaknesses and recommend changes. Treat that as a roadmap for operational maturity:

• Tighten contract signing and storage
• Improve debtor follow-up and credit control
• Fix recurring reconciliation issues
• Reduce fraud exposure through better approvals

Here’s the marketing-adjacent truth: when you can say, “We identified a control gap and closed it within 60 days,” you’re demonstrating the behaviour that trust is built on—responsiveness, transparency, and governance.

Keep the relationship active (especially during major changes)

Audit readiness is not a “once a year” project. It’s an operating standard.

Bring your auditor in early if you’re planning:

• Expansion into a new region or entity structure
• A new revenue stream or pricing model
• New financing (debt covenants, investor reporting)
• Any adverse event that could affect going concern disclosures

You don’t want your first conversation about a major change to happen when the audit clock is already running.

A simple 30-day audit readiness plan for founders

If you want momentum without boiling the ocean, this is a realistic 30-day plan I’d run with a lean finance team.

1. Week 1: Confirm whether you’re approaching thresholds; list leases and assess asset impact.
2. Week 2: Lock down contract storage and bank/payment approval rules; assign an audit owner.
3. Week 3: Complete monthly reconciliations for all balance sheet accounts; clear aged reconciling items.
4. Week 4: Draft a one-page summary of revenue recognition and key estimates; request the PBC list and agree a timeline.

You’ll still have work to do after day 30, but you’ll have moved from “we hope this is fine” to “we can show our workings.”

Audit prep is often framed as compliance. I think that undersells it. For a scaleup, audit readiness is a public signal of trustworthiness—and trust is what gets you funded, selected, and renewed.

If 2026 is the year you push into bigger contracts or a serious funding round, ask yourself: when someone looks under the hood, will they find a story that matches your pitch?