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Why Auditing is So Important for Small Business Owners
When you start a business, you may think that you can keep your financial records in order flawlessly. You diligently enter every invoice – every expense – and you just know that everything is correct. As your business grows, you may get so busy that you forget to add a number every once in a while. Your employees may start doing some of that work for you.
An important part of keeping your business in order is keeping your financial statements in order, but many business owners question whether an audit is worth the expense.
With a financial statement audit, you can ensure that everything is correct and your business is running smoothly. The auditor, either an independent or internal one, examines the financial records to ensure that they are accurate and fair. You can find a professional auditor through your business startup accounting services firm.
Ensure That Your Records are Reliable
When it’s time to lodge your business tax return, you do not want to have to go through invoices and receipts to ensure the amounts you report are accurate. And if the IRS reviews your tax return, you definitely want them to rely on your records. You know that you will not have to spend time later recalculating or correcting errors. When you have an independent financial audit, you can breathe a sigh of relief knowing that everything is correct.
Improve Accountability and Prevent Future Problems
Especially if you give some financial control to employees, you need to keep track of who is accountable. Are all accountable employees providing reports accurately and on time? A financial audit checks for any problems in any part of the process to ensure everyone is in compliance with their financial duties.
When you hire an independent auditor, he or she has no loyalties or friendships in the business that could prevent anything but full honesty. Auditors at accounting services are trained to be impartial during a financial audit. Whether an issue is a simple oversight or a blatant misrepresentation, the auditor will advise you of the problem so that you can correct it for the future.
Increase the Business’s Value
Many small businesses seek out investors to assist financially with expansions and growth. When you have records of regular audits, you can show investors or even lenders that your business is worth their investment. Having the backup of clear, detailed financial statements, especially when they have been reviewed by a professional auditor, can give you what you need to grow your business.
The value of an auditor is much higher than you may have thought, and an auditor can help you. Being diligent about your business practices, especially the financial side, can help your business continue to prosper as you know it should.
A.M. Words LLC 