How an Audit Can Benefit Your Business

Published by John Holmes at August 7, 2020

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Many business owners think an audit is something performed only when it is forced upon the business by lenders, investors, or regulatory agencies. Because of this misconception, the term, “audit” implies a negative situation is happening. If your business is required to be audited, the purpose is to present the most accurate representation of financial position and operating activity as possible. There are also many positive reasons to have an audit done of your own choice. At Fricke & Associates, LLC, we perform audit and assurance services to help your business keep a clear picture of your business operations to enable you to make sound financial decisions. We will demonstrate the value of an audit as a proactive solution for your business.

The Basics of Audits:

What is an Audit?—An audit is an evaluation of a company’s accounts and financial records. It is typically completed by an independent party. If a bank or bonding company asks that you have an audit, they are expecting an outside unbiased source will be performing it.

Why Audits?—Audits are a necessary part of any growing business. Your bookkeeping and documentation should accurately reflect your company’s financial position and results of operations. Here are a few reasons why an audit may be wise:

·        Profitability—If your business is not making money that you think it should and you are unsure why, an audit could provide key information to understand the problem. An audit could highlight areas to address so your business can flourish.

·        Growth—As a business grows, it can qualify for outside funding. An audit can document how your business has progressed.

·        Selling—If you are looking to sell your business in the next few years, an audit can help you prepare. Having your books in order is crucial to make sure that you achieve the best outcome for your sale.

·        Compliance—Ensuring that your business is doing everything by the book with your finances is vital. If your finances or documentation are inconsistent, you could eventually end up in trouble with the regulatory agencies. Conducting routine audits will help you ensure that you are upholding the expected standards. Being proactive with regular audits could assist in filing accurate tax returns. 

·        Fiduciary Responsibility—Regular audits will help you determine whether your company is managing your finances well and pursuing the best interests of your clients, investors, and owners. If your company is feeling weighed down by fiduciary responsibility, an audit can help you find relief.

If you are interested in getting a clear understanding of your situation, reach out to Fricke & Associates, LLC, to request a financial statement audit. We have specialized staff, who are well-versed in the ins and outs of audits, ready to help!

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If you need a bookkeeping professional for Small businesses in Atlanta, GA, Fricke & Associates, LLC. We have the expertise and experience to understand your needs, analyze your financial data, promote your growth, and ensure your financial future is set on a successful path. Additionally, we are a leader in developing and implementing the latest technology for optimizing accounting, tax, and financial planning solutions.

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