The middle of the year is the perfect time for firms to pause, reflect, and prepare for what’s ahead. Whether you manage a hedge fund, crypto fund, or financial services firm, here are some key reminders to keep you on track.
1. Review Internal Controls and Processes
Now is a great time to review your internal controls and procedures. Check for gaps in documentation, segregation of duties, and valuation practices. Address any weaknesses before year-end to avoid surprises during your next audit.
2. Organize Financial Records Early
Start gathering critical documents now, including trade confirmations, investor statements, and valuation reports. Keeping these organized throughout the year can reduce stress and delays during audit season.
3. Stay Updated on Regulatory Changes
Mid-year is when many regulatory updates are announced or come into focus. For example, the new PCAOB QC 1000 standard will take effect in December 2025. Stay informed and communicate with your auditors and advisors to understand how changes might impact you.
4. Evaluate Tax Strategies
Work with your tax advisor to assess estimated tax payments, state tax obligations, and potential deductions. Proactive planning now can help reduce year-end tax burdens and avoid penalties.
5. Engage with Your Audit Team Early
Don’t wait until year-end to connect with your auditors. Proactively discuss any operational changes, new investments, or compliance concerns. Early communication helps streamline the audit process and builds stronger relationships.
6. Plan for Staffing and Resources
Consider whether your team has the right resources to handle year-end tasks. Mid-year is the time to assess staffing needs, technology solutions, and training gaps.
Stay Ahead, Stay Compliant
Taking a proactive approach at mid-year sets the stage for a smooth year-end. Our team is here to support your internal control reviews, tax planning, and audit preparation.
Let’s connect to discuss how we can help your firm stay compliant, efficient, and ready for what’s ahead. Contact us today.