Viewing audits as compliance box-ticking could be holding your business back
By Emma Wilson, Partner
Business owners are under a lot of pressure to keep everything moving and growing in the face of economic challenges.
For those already finding it tricky to juggle obligations, it might seem like an audit is anything but helpful.
However, an audit can extend beyond a compliance measure and reveal the financial capabilities of a business.
When should a business be audited?
It is possible for most businesses to seek a voluntary audit if they want to find out how their finances are holding up under pressure.
However, there is a threshold where audits become a statutory obligation that must be fulfilled annually.
A company must exceed at least two of the following criteria for two financial years to become subject to statutory audits.
- Annual turnover: More than 15 million.
- Balance sheet total (gross assets): More than £7.5 million.
- Average number of employees: More than 50.
When these thresholds were raised in April 2025, an estimated 132,000 UK businesses dropped out of scope for statutory audits.
However, the operational challenges that those businesses faced did not evaporate when the change was made and many of them would continue to benefit from being audited regularly.
Similarly, businesses that approach the threshold may consider a voluntary audit to get a sense of how it will work before it becomes a legal obligation.
Is an audit good for my business?
Even business owners who are deeply connected to their finances may not notice small cracks appearing.
Having an independent expert take a deep look into your figures ensures that you have an accurate awareness of your business’s current financial position.
This should serve to underpin any decisions around investment or growth as you will know what funds you are working with.
A detailed audit report can also demonstrate the stability of your business, winning support from investors and lenders who might be integral to a broader growth strategy.
On a smaller scale, many businesses discover ways to save money after an audit report has been issued.
There could be all manner of inefficiencies that are rife throughout your business that persist because no one knows to challenge them.
An auditor should identify these problems by thoroughly analysing your financial processes and operations, so you know how to operate more effectively.
The audit report that you receive will then form the basis for your financial goals over the next year.
You should endeavour to eradicate the inefficiencies identified before they drain your budget and weaken your growth potential.
All of this requires you to have an unflinching audit from an auditor you can trust.
Our team works to get to the crux of your business’s finances, never shying away from raising issues.
Using the detailed audit reports we provide, you can have the confidence to make the right decisions for your business and endure the economic challenges ahead.
For a reliable audit that can improve your business’s efficiency, speak to our team today.