An accounting audit may improve your business finances. Inaccurate tax filings, labour law violations, and additional accounting errors can hinder the success of your company. Audits help uncover these issues before they result in major financial losses.
Ensure the Accuracy of Your Accounting Practices
If your current accounting system is inaccurate, your finances are at risk. Accounting firms review your financial information and the processes that you use to ensure accuracy.
An auditor can identify issues that may increase the risk of errors. Even a small, undetected error can later lead to major financial losses. Reviewing your current system ensures the accuracy of your accounting and helps you avoid future mistakes.
Auditors also help educate you and your accounting department. During the audit, your internal accounting team may discover ways to streamline accounting tasks. Small business owners that handle their own financials and bookkeeping can learn how to improve their accounting practices.
Prevent Tax Problems and Legal Issues
Incorrectly calculating your tax liability can lead to over or underpayment to the government. These inaccuracies increase the risk of a tax return audit. An auditor can help with your tax planning, and they help you make the most of your tax write-offs and avoid issues that increase your risk of getting a tax audit.
Inaccurate accounting may also lead to legal issues. Errors that may result in legal action include providing incorrect information to investors or lenders; these issues are easily prevented with an effective and accurate accounting system. Auditors may discover the reason for the inaccuracies, helping you avoid repeating the mistake.
Failure to comply with employment or business regulations is another potential risk of inaccurate accounting. This includes details related to labour laws. An audit helps you avoid penalties or fines for violating these laws and regulations.
Receive Unbiased Financial Recommendations
Audits can also include a close look at your business planning. Business growth requires capital; before obtaining a loan or financing from a lender, you need to ensure the accuracy of your finances.
The experienced accountants at Barrett and Partners can review your plans and help determine if now is the right time to focus on business growth. You can receive unbiased suggestions and assistance with your financial planning.
Auditors Can Help Uncover Fraud
While most accounting discrepancies are the result of human error, employee theft can occur. Auditors can help detect internal fraud. An auditor knows what to look for and can identify any discrepancies in bookkeeping. You can also receive advice to protect your business from future financial theft.
Businesses of all sizes can benefit from accounting audits. Small businesses and large organisations both need accurate accounting to avoid costly errors. Schedule an audit of your business to uncover any potential inaccuracies.