For small businesses, auditing can be extra and unnecessary work. It can be costly, and small businesses would rather not do so, especially if not required. However, auditing can be beneficial for a lot of small businesses. If you consider getting your business audited, check the list below to learn more about how it could help your business.
Applying for a Business Loan
If you are planning to get a business loan, you need to be able to present your company as a legitimate business to the lender. An excellent way to do this is by getting your business audited by an expert. A business audit can help make your business look like a viable investment on the lender’s part; they want to ensure that your business is doing well so they do not lose their money.
Securing Government Grants
Like with lenders, the government will not give grants to just anyone. They would want to receive an accurate financial statement of how the business is faring. An audit will not only provide accurate data, but it can be excellent proof that the company is doing good and will continue to do well in the future.
Keeping Shareholders Updated
Shareholders will want to know how well the business is doing financially. They would like to keep track, considering they own a part of the business. An audit will give your shareholders a good view of the stand of the business in terms of its finances. It assures them that they are not being swindled and that their investment is in good hands.
It will also help them understand which aspects of the business may need more attention than others and how they can continue to support the company as shareholders.
Track Fraudulent Activity
If your business is not auditing, anyone can get away with committing fraud, especially the employees. Auditing is a detailed manner of checking finances and identifying any discrepancies in statements. Furthermore, you can check the business’s weak areas and see what can be done about them.
Without an audit, your business could be easily losing money without being detected. It may already be too late by the time you notice it, and the perpetrator can get away with it and hide their tracks.
Selling Your Business
For people planning to sell their businesses, audits are a must. An audit will give buyers all the information they need to make a good decision on purchasing a business. It will provide buyers with confidence in the choice, and it would also make sure the owner commits no fraud.
Complying with Regulatory Obligations
If you are not auditing your small business, you are not complying with rules and regulations. It is a good idea to get your business regularly audited to have documents to show that you comply with Australia’s laws.
If you have not been auditing your small business, then it is time you do so. Auditing can help your business get loans and apply for government grants, as well as keep your shareholders updated on your financial status. It will also help you track any fraud or discrepancies in the company and help you prevent it before it gets worse. Overall, auditing gives you an overview of your business and how it is going.
If you need a small business audit done, you can work with SMB Accounting. You do not have to worry about keeping track of your books and finances, and you can focus on growing your business. Contact SMB Accounting today to get started.