Your first audit
Greywood CPA performs first audits for startups and SaaS companies. Most startups get their first audit because a Series A or later investor, a venture debt lender or an acquirer asks for one. We are a licensed CPA firm (Virginia Board of Accountancy firm license #134961) working nationwide, at a fixed fee.
A first audit takes more work than later ones: opening balances have to be tested, and books kept on a cash basis or by a part-time bookkeeper usually need cleanup first. The areas that need the most attention are revenue recognition, SAFEs and convertible notes, stock-based compensation and capitalized software.
Last reviewed: November 2026
| Who is asking | Typical timing |
|---|---|
| Lead investor in a priced round | Often as a condition of the round or within the year after |
| Venture debt lender | Annual audited statements under the loan agreement |
| Acquirer | Audited statements, or a quality of earnings review, during diligence |
| Board of directors | Once the company reaches meaningful revenue or outside capital |
Check your investor rights agreement and loan documents. They usually say when audited statements are due.
If you're not there yet, our separate accounting team can get you there before the audit starts.
In a first audit, the auditor must get comfortable with the balances you started the year with, including deferred revenue, equity and accrued liabilities, because they affect the current year's results. Later audits roll forward from audited numbers, so they usually cost less.
A 30-minute call about your organization, who needs the report and your deadline.
Scope, report type, timeline and one fixed fee, in writing.
Everything we need, uploaded through a secure portal.
Remote testing, then a draft for your review.
A CPA partner signs, and we walk you or your board through the results.
Usually when a priced-round investor, a venture debt lender or an acquirer requires one. Investor rights agreements and loan documents typically state when audited statements are due.
The auditor must test opening balances, such as deferred revenue, equity and accruals, and books often need cleanup first. Later audits roll forward from audited numbers.
SAFEs are often classified as liabilities rather than equity, depending on their terms, and may need to be measured at fair value. Convertible notes can also have embedded features that need separate accounting.
Auditors rely on grant-date fair value to measure stock-based compensation, and a 409A valuation is the usual support for common stock value at each grant date.
We quote one fixed fee in writing before any work starts, based on revenue, complexity of your equity and revenue arrangements and the condition of your books.
Tell us your deadline. A senior CPA will send a fixed-fee proposal within 1–3 business days.