Regular and accurate auditing is a vital part of running any business which is why it is such a surprise to see even some multi-national businesses get it wrong. So what are the three reasons why auditing is so important for your business?
Regular auditing builds confidence and trust
If you run a business where there may be one or more stakeholders involved, then transparency is a must. Nobody likes to think that the true state of a company’s finances has been hidden away ready to cause problems further down the road. This is where auditing is vital to show that even if a business isn’t doing so well, the right things are being done to help long term.
Audits keep lenders happy
If your business is run professionally then your lenders will be happy. If you start playing around with ledgers, however, banks will become nervous. Regular audits ensure that financial problems are spotted early and the company has a grip on its finances.
Regular audits help keep the taxman away
IF a company doesn’t audit its finances regularly, then HMRC is likely to be alerted that a business may be hiding something. This could end up with a tax inspector taking a closer look and that is something no business needs.