By: John S. Morlu II, CPA
Introduction: When Delay Turns Into Disaster
In the fast-paced world of SBA 8(a) contracting, time isn’t just money — it’s credibility.
Yet many owners delay getting their books review-ready, telling themselves,
“We’ll deal with it at year-end.”
That delay often leads to stressful audits, missed deadlines, and lost opportunities.
Here’s the truth: waiting too long costs far more than acting early.
Why the Wait-and-See Approach Fails
Engaging a CPA for an Independent Review or Audit is not like ordering an online service.
It requires:
- Time to reconcile accounts
- Gathering documentation for contracts, receivables, and payables
- Communication with lenders, bonding agents, and often SBA reviewers
- Addressing inevitable accounting adjustments
A last-minute rush usually leads to:
- Higher professional fees
- Longer turnaround because top CPA firms are already booked
- A higher chance of missed deadlines or report deficiencies
Case Study #1: The Rush-Audit Disaster
A $12M-revenue 8(a) construction firm put off engaging a CPA until two weeks before SBA’s filing deadline.
What we found:
- Receivables unreconciled for four months
- Job-cost reports inconsistent with the general ledger
- Payroll liabilities recorded incorrectly
- Multiple contracts with revenue misclassified
Instead of a smooth three-week review, the audit stretched to three months.
The delay caused:
- Suspension of eligibility for new awards
- A bonding agent halting an increase in bonding limit
- Loss of a multi-million-dollar task order to a competitor
Case Study #2: The Lender’s Shock
A $5M-revenue IT services contractor submitted bookkeeper-prepared statements to a bank seeking a higher credit line.
During underwriting, the bank’s analyst spotted a $400,000 cash overstatement and unrecorded liabilities.
The bank immediately:
- Pulled the application
- Cut the contractor’s existing line by 25%
- Required a full CPA-reviewed restatement before reconsidering
The owner admitted:
“If we’d had a review months earlier, we would’ve caught this ourselves and avoided the embarrassment.”
The Common Thread in Audit Nightmares
Every horror story we see has the same root causes:
- Late engagement of a CPA
- Weak or outdated accounting systems
- Failure to reconcile regularly
- No early internal reviews
The technical issues were solvable.
The delay made them costly.
The True Price of Waiting
- Lost bids: Compliance issues block you from competing.
- Lost time: Management gets stuck in cleanup instead of focusing on strategy.
- Lost credibility: Lenders, sureties, and even primes become hesitant partners.
- Higher fees: Rush jobs always cost more.
How Early Action Changes the Story
Engaging a CPA firm early in the fiscal cycle allows:
- Interim checks on receivables, payables, and job-cost reports
- Time to fix issues before the official review begins
- Better preparation for bonding agents and lenders
- Predictable, often lower professional fees
How JS Morlu Helps Clients Avoid the Crunch
We partner with 8(a) contractors year-round by:
- Creating a compliance calendar to keep everyone on schedule
- Performing quarterly or mid-year reviews to catch problems early
- Advising on system improvements to reduce manual fixes
- Coordinating directly with lenders, bonding companies, and SBA reviewers
Our clients walk into reviews prepared, calm, and confident — and stay focused on growth instead of firefighting.
Owner’s Takeaway
Delaying your audit or review engagement doesn’t save money — it magnifies risk and increases cost.
Early preparation is not just a best practice — it’s a competitive advantage.
Don’t wait for the next renewal season to scramble.
Get ahead of the deadline and avoid becoming another audit-nightmare story.
👉 Schedule a pre-engagement consultation with JS Morlu today — and turn your audit season into a predictable, well-managed process that supports your growth instead of disrupting it.
Author: John S. Morlu II, CPA is the CEO and Chief Strategist of JS Morlu, leads a globally recognized public accounting and management consultancy firm. Under his visionary leadership, JS Morlu has become a pioneer in developing cutting-edge technologies across B2B, B2C, P2P, and B2G verticals. The firm’s groundbreaking innovations include AI-powered reconciliation software (ReckSoft.com) and advanced cloud accounting solutions (FinovatePro.com), setting new industry standards for efficiency, accuracy, and technological excellence.