Auditing is a vital part of monitoring a business’s financial health and, in many cases, remaining compliant with Government policy.
Whether your business is being audited to stay compliant, is doing it voluntarily, or is doing it as part of a sale, there are some steps you can take to make the process as efficient as possible.
Coordinating your financial records for an audit
Whether thinking about an audit or just the general running of your business, a consideration of how you store your financial records is always important.
One of the biggest challenges that auditors face is compiling all of the necessary information that allows them to understand how your business is functioning.
If an auditor is struggling to access your information, how easy is it for you to gather the records you need to plan for your future?
Most of the information that an auditor will review is also information that will determine whether you can grow your business, need to secure funding, or need to start cutting costs.
Creating a secure, centralised repository of your financial information will address this major hurdle in both your business’s potential and in the auditing process.
The arrival of automated software has changed the landscape, and the adoption of some of these technologies may help with this endeavour.
It is wise to seek professional advice before employing any new software of this nature so that its veracity can be confirmed.
Planning for future audits
Audits seldom come as a complete surprise to a business, and so there is little excuse for not having prepared accordingly ahead of time.
Unless you have never been audited before, you will have a general understanding of the information and access required by an auditor.
Preparing this early and having an awareness of any potential gaps in documentation and access will allow you to cut back on the time taken during the audit.
If possible, try to rectify any documentation issues before the audit happens.
If you know there is an issue with your finances, do not wait for an auditor to tell you.
Once your audit has been conducted for the year, pay close attention to what happened during the process.
Learn from each audit and implement not just the advice issued by the auditor but also any measures that were necessary to facilitate their access to your finances.
It may be helpful to nominate an individual in your organisation to serve as a dedicated audit liaison.
This will help us have a direct point of communication with your business and thus allow for more effective communication.
You do not have to go blindly into the audit process.
Taking care of your finances all year round will ensure that your audit is carried out smoothly and effectively.
If you want to be audit-ready all year round, speak to our team today.