An audit is statutory for any organisation with a turnover of £10.2m or more but many smaller companies also choose to have one. Here are 5 ways that an audit can benefit your business.
1 Audits help flag up accounting issues
An audit helps to identify weaknesses in the accounting systems and enables your accountant to suggest improvements.
2 Ensures accuracy and reduces fraud
Directors who are not involved in the day-to-day finance functions of the business can be assured that the information they are receiving is correct, reducing the risk of fraud and poor accounting.
3 Gets you better advice
Your accountant will have a far deeper understanding of your business and, as such, can provide advice that will have a real financial impact, for example by improving internal processes or tax planning.
4 Boosts credibility with buyers
In the event that you decide to sell your business, an audit will enhance the credibility and reliability of the accounts shown to prospective buyers.
5 Improves credit rating
Having an audit may have a favourable effect on your credit rating and your ability to access credit from suppliers and lenders.