As a small business owner, you’re tasked with making critical financial decisions and monitoring the productivity of your employees on a daily basis. In the same sense, you may take on the responsibility of overseeing accounting systems, invoicing, or tax planning. As an owner of a business, you may hear the word “audit” and immediately think of the negative connotations that surround it.
The reality is, however, internal audits can be actually incredibly beneficial for your small business. A small business internal audit can help your company discover crucial information about your accounting systems, find technical errors in your business processes, and assist you in modifying your future tax planning. If you’re a small business owner in Southeastern Pennsylvania and are looking for “reputable accounting services near me”, look no further than SD Associates. Below, we’ve listed three major positives in enlisting professionals for a small business internal audit.
Identify Accounting Weaknesses:
An audit, by definition, is an inspection. Perhaps a major reason that businesses owners fear internal inspections is that they are designed to reveal fundamental flaws within their business operations. Business owners should actually welcome and encourage these internal reviews, as they provide limitless opportunities to improve practices before it’s potentially too late. Receiving pertinent information, updates, and projections regarding key financial areas like gross margins, cash flow, cost analysis and taxes, and more can help you in your business plans and execute more efficiently in a multitude of areas.
When it comes to tax planning, internal reviewing simplifies the filing process and also helps you identify available benefits that you didn’t know existed. Additionally, hiring an independent organization to analyze your small business eliminates any bias that you or one of your internal employees may have.
Strengthen Credibility and Reputation:
Creating credible financial records is crucial in your small business. An Audits of the financial statements provides greater comfort to potential partners or bankers that all of your financials are in accordance with generally accepted accounting principles. When the time inevitably arrives to start considering succession plans or sale preparation, consistent financial audits provide you as the business owner with more time to correct systematic issues that might be uncovered by potential buyers. This way, any glaring weaknesses within your accounting systems or financial management processes can be improved upon well before your business goes to market.
Test Controls, Detect Fraud:
Are your business controls (or daily procedures) susceptible to misstatements, errors, or even fraud? Small business internal audits not only work to determine if your controls are able to detect these operational risks, but also if they’re able to prevent them from happening in the first place. Professional auditors will strategize tangible options to overcome these risk areas and increase the security of flawed operations. In the event of internal fraud, an internal audit can identify where fraud is occurring, the extent of the fraud, and how to quickly eliminate it.
Schedule a Small Business Audit Today
With so much on the line, you need to be absolutely positive that your small business audit is performed by certified public accountant. The expert team at SD Associates, P.C. has nearly four decades of experience performing concise attestation engagement or agreed upon procedures, providing detailed financial analysis, and facilitating necessary discussions for positive changes for small businesses. If your business is eager to improve daily operations and plan for a better future, schedule an appointment with SD Associates today!