It’s no secret money is a fundamental aspect of the success of any business – however, this precious commodity is also something that needs to be effectively managed. One of the main ways you can go about this is to have an audit carried out. This involves an independent body inspecting and assessing your company’s accounts to make sure they are all in order.
In this post, we take a closer look at which businesses need an audit and explain why these can be beneficial.
Does your Business Need an Audit?
As a general rule, all public and private companies require an audit at some point, there are some exceptions though. In the UK for example, if a business meets the criteria of being a ‘small business’ or the company is a charity or one which has a subsidiary of another parent company. There may be similar regulations and exemptions in place in your home nation, so this is worth investigating. However, an audit is still available to any company that can be considered exempt.
Why an Audit is Useful
In short, an audit is useful and important for a business because it can bring you the following benefits:
- It shows that your finances are accurate and as you expect them to be
- You can identify any issues or problems in your accounts
- It can improve the credibility of your business to prospective and current investors
- It provides visibility for everyone involved in your company (and even your customers) about what your financial situation is like and where your money is going
- It can help support insurance claims
- It can show a growing business more information about its success and development
Where to Look
This is something that needs to be carried out by an expert firm. Fortunately, there are plenty options to consider and it’s really a matter of finding a company that understands your niche and sector. Also, it’s a wise move to pick an established auditor, like RSM Global for example, as such providers with wider portfolios are more likely to have more experience and expertise in this field.
The Bottom Line…
Whether it’s a requirement for you to have an audit with your business or not, the truth is that these are incredibly beneficial in a number of ways. So, if you’ve yet to get one organized, don’t waste any more time, act now and seek the professional advice and support you need.
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