The Compliance Costs of Doing Nothing

Why ignoring compliance today could cost you tomorrow
October 30, 2025

We get it … compliance isn’t the most exciting part of running a business. It doesn’t generate revenue. It doesn’t feel urgent. And when you’re juggling a dozen other priorities, it’s easy to push it down the list. But here’s the truth:

Doing nothing doesn’t mean nothing happens.
In fact, it often means the opposite.

When companies delay compliance efforts — whether it’s impairment testing, purchase price allocation work, or updating equity comp accounting — it doesn’t just disappear. It accumulates risk, creates future rework, and ultimately costs more.

The Hidden Costs of Delay

At first, pushing off a project might feel like a smart use of time and resources. But those “we’ll get to it later” decisions usually lead to:

  • Fines and penalties if you’re out of step with reporting standards
  • Scrambling under audit pressure or during diligence
  • Lost time as your team chases historical data or rebuilds old files
  • Consultant fatigue when last-minute support means high costs and limited availability
  • Internal burnout when your team is suddenly buried under urgent catch-up work

Risk Snowballs Over Time

We’ve seen it firsthand:
A missed reporting deadline leads to audit issues.
An outdated equity plan delays an acquisition.
Inconsistent processes make it harder to raise capital.

Even reputationally, repeated delays or noncompliance signals a lack of control to investors, buyers, and internal stakeholders. These risks don’t just impact accounting – they influence valuation, deal timelines, and team retention.

What Proactive Looks Like

The good news? Avoiding these outcomes isn’t about massive overhauls or expensive software. It’s about small, steady steps toward readiness:

  • Tackle the low-hanging fruit early
  • Work with a partner who understands the urgency behind the deadlines (hi, that’s us)
  • Set up systems that support reuse and not rework
  • Bring in external help before the pressure hits

Final Takeaway

Kicking the can might feel like a short-term win. But in compliance, delay often comes with a price.

Get ahead of the curve — whether it’s building a roadmap for standards adoption, supporting a high-stakes transaction, or simply taking something off your team’s plate.

About Franklin Nova Group
Headquartered in Pittsburgh, Franklin Nova Group is a boutique finance advisory firm respected for its valuation services to both public and private companies, and M&A and business advisory practices focused on mid-market companies, advisors and high net-worth individuals. For more information on the Franklin Nova Group, visit https://www.franklinnova.com

Learn More About Franklin Nova Service Offerings
Brian Sarkis - 412.206.1486