Audit services: A potential wealth of ideas for your business
It’s a common misperception that audit services are just a commodity – a compliance requirement that offers little to no practical value to the actual success of a business. On the contrary, a thorough and well-executed audit of your financial statements can, in fact, help you increase the net worth and overall efficiency of your business.
When Are Audit Services Needed?
Some companies are required by their banks or investors to have audited financial statements in order to meet lending requirements. Other companies, in highly regulated industries and/or in receipt of public funding, may also have mandated audits.
And although they aren’t always necessary for selling your business, many prospective buyers will insist upon seeing audited financial statements for up to five years prior to sale, before finalizing the purchase. Even if they do not request one, it’s advisable to provide audited financial statements to prospective buyers in order to facilitate the acquisition process.
How Can An Audit Provide Value?
An audit provides a business owner with some powerful data that can be greatly effective in improving your business in a number of ways:
- Identifying Waste. Audits are an excellent way to identify unnecessary systematic waste due to redundancies or inefficiencies.
- Identifying Risk. An audit can highlight procedure-related security risks, such as the frequency and security of IT backups, access to finance, thoroughness of recordkeeping, and the flow of sensitive information.
- Increasing Professionalism. An audit provides an analysis of systems, processes and procedures that can be used to make your functional operation more professional. This is particularly important for family-owned businesses that are considering bringing externally-hired managers or senior executives on board.
- Detecting & Preventing Wrongdoing. An audit can help you to detect any financial wrongdoing that may be occurring within your company, and help you to identify opportunities for tightening controls, implementing checks and balances, and reducing the risk of fraud.
- Increasing Overall Efficiency. An audit will give you an overview of how your business operates, which will give you the perspective you need to simplify areas that might be unnecessarily complicated, streamlining your business to enhance overall functionality, and improve your bottom line.
A Well-Earned Reputation for Excellence in Accounting and Business Solutions
At Fuller Landau, we are committed to helping entrepreneurs like you to grow their business. In addition to our audit and assurance services, we offer a full range of advisory services, including valuations, litigation support, forensic accounting, restructuring, corporate finance, corporate tax planning, and more. .
We are Toronto’s specialists for corporate financial accounting services and solutions. Contact us today for a free consultation to learn how we can help you run an efficient and profitable business.