If you have offices in different location, multiple staff or different departments then it’s easy for irregularities and errors to occur, particularly if the business owner isn’t able to take control of everything him or herself. By having a complete audit carried out on your business, any mistakes will be picked up on as well as being able to catch any fraudulent activities that may have taken place.
While it may be an inconvenience to have an audit carried out, there are many benefits that will come out of it that it becomes a worthwhile process.
By having an audit, business owners or company directors will be able to identify any weaknesses that may be present in the accounting systems and implement improvements for the subsequent year. It will also mean that they can check, if they are not directly involved in the accountancy process, that the business is actually running in accordance with the reports and updates provided to them.
Going through the process of an audit will also mean that advice can be given on the finances of the business, how the business is performing, provide detailed analysis of the margins and how the business could do going forward.
As well as these reasons, an audit will also mean that the credibility and reliability of the figures will be increased – something particularly important if the business is looking for investors or buyers. Regular audits will look good to those looking to invest in your company.
Furthermore, if your figures need to be published – either to the public, employees, customers, suppliers, investors or tax authorities – an audit will add credibility to these. If you don’t have an audit then this could well affect credit ratings for the company and suppliers may not give appropriate credit limits for your company. The HMRC will also look favourably on figures that have gone through the process of an audit before being submitted and if an insurance claim needs to be made, insurers will also be more trustworthy of figures that have been audited.
If your company needs an audit, then get in contact with Johal and Company today and see how they can help your business.