Succeeding in growing your business? Your first audit awaits you
By Matt Storey, Partner
Growing your business is not an easy task, but it is a sign that your hard work and dedication are paying off.
Among the celebrations that come with seeing your turnover steadily increase, there comes a point where every growing business faces the prospect of its first audit.
If the statutory threshold is in sight, you need to be making preparations to ensure that you can make the most of this new responsibility.
When will a business need an audit?
There are three things that are considered when determining whether your business needs an audit.
If any two of three are met, then you will need to complete an audit every year.
These criteria must be met for two consecutive years and are:
- A turnover of £15 million
- Assets of £7.5 million
- More than 50 employees
These thresholds were updated on 5 April 2025, so be mindful that you do not find outdated information when figuring out whether your business is approaching the audit threshold.
Why does my business need an audit?
It might be tempting to say that an audit is mandatory and that is the reason why it must be done.
However, we know that there is more to an audit than box-ticking for the sake of compliance.
Audits are designed to preserve the financial health and value of a business by identifying weaknesses and empowering those who make decisions to have the relevant data needed to do so.
When used effectively, an audit should be the beginning of your business’s next stage of growth, ensuring that the steps you take next are supported by data.
An audit aims to reveal the gaps in your numbers before they become a problem so you can operate with confidence.
What do I need to do before my first audit?
The first audit is the hardest as you have no prior experience to draw from.
Fortunately, our expert team are incredibly familiar with how audits work so you can benefit from our experience instead.
You first need to understand what an auditor is hoping to achieve.
They need to conduct a thorough review of your financial records to verify the data themselves.
This means that you can make your life and the life of your auditor much easier by preparing information ahead of time.
Gather up your financial records in one centralised, secure place so that your auditor can access all that they need to without having to look around for it.
This can be aided by appointing one of your team members to be a point of contact for the auditor, ensuring that they do not need to talk to too many people, thereby slowing down the process.
Finding the right auditor before the deadline approaches and giving them the time they need to work can also reduce stress all around.
For private companies, your audited accounts must be filed with Companies House within nine months of your financial year end and public companies must file them within six months.
You can engage with your auditor any time after your financial year-end, so doing this early can be a good idea.
Once your first audit is completed, you will be in a better position to handle all future audits, provided you are able to implement the findings of the initial audit report effectively.
Our team can help you prepare for your audits and learn how to manage the findings once they are complete.
Having your first statutory audit is a huge milestone for a business and we feel that it should be a cause of celebration rather than something you dread.
If you want confidence in approaching your first audit, speak to our team today.