Many business owners will become sullen when auditing issues are brought up. Even though there are many people who love to demonize the process, it is not all bad. If you care to look beyond the surface, you will realize there is a lot of benefits your firm can reap from the process. When your business is being audited, it is not just the financial records that will be checked but also the invoices you send and receive not forgetting the accounting systems you are using. As far as auditing is concerned, it is a way of ensuring the financial statements and the performance of the firm are at par. The process has to be completed by a third party so that there is no biasness. Auditing helps you note the weaknesses in the accounting system. The tracking system might not be reliable and there might be errors in payments to be corrected. With loopholes in accounting system you can lose money and if you do not have enough to keep the firm afloat it will be the end of the company for you. When you hear of fraud in companies it is mostly those in the public sector but it also happens for the private ones. In the event that some of your employees are stealing from the company, this is something an auditor will not be able to miss.
There are some employees who can become lazy at their job and decide not to follow the right steps in financial tracking. You might miss these occasion if you are checking the records in small chunks but since auditors will lay all the cards on the table even the slightest discrepancies will be realized. You need people who share the same vision of your company as you do and someone who is taking shortcuts should not be working for you.
Filing returns for businesses is usually more complicated given the number of transactions which ought to be logged. Therefore, you need to be well prepared prior to this period because and an auditor helps to determine what is out of order so that you can find a solution before the tax season. Providing the wrong information in filing taxes is usually a criminal offense whether you knew about it or not. Therefore, auditing is a part of tax planning you should into sweep under the rug. When the financiers see that you have your business audited on a frequent basis, they will be assured that the net worth of your company is actually what you have quoted to be. This site has more details.