The firm faced serious challenges preparing for its annual audit and partner distributions. Complex revenue streams with projects varying in billing models like retainers, milestones, and hourly billing required different revenue recognition methods. Poor time tracking meant billable hours were inconsistently logged, making profitability unclear and invoices delayed. Project cost allocation gaps existed where direct costs and overhead weren’t properly mapped to projects, skewing financial insights. Employee vs contractor confusion with a mix of staff types led to classification and payroll compliance inconsistencies.