5 Reasons to Audit Your Financial Statements

financial statements

Ensuring you get all your figures right in a financial statement is incredibly important for complying with tax regulations. Any minor details that end up being incorrect can trigger an investigation, so you’ll need to make sure that your financial statements are airtight. Most companies hire external accountants in London to conduct a financial audit to ensure that everything is correct.

 

When an auditor arrives at your business, they will carry out a detailed inspection of your financial records and the statements your accountant makes. If the audit catches an error, they will put it in a report, so it’s best to have a third-party audit your records.

 

Here are five reasons to do that:

 

1. They’ll Give You a Comprehensive Report

Once you’ve hired accountants to audit your financial statements, they’ll conduct a review and create a final report that details their findings. You’ll then have a comprehensive report that gives you a complete picture of your business’s health. Even if you are meticulous in ensuring your company is compliant with all rules, you may have made small mistakes that you will still need to correct. The report also demonstrates where your company is most secure, helping you allocate your focus better.

 

 

2. They’ll Offer You Another Perspective

It’s hard to be objective about your own processes and situation, where a third-party auditor comes in handy. They will give you a full assessment of whether you are practicing full compliance or have major oversights in your process that you must correct right away. Implementing an audit early on may ultimately save your company from financial trouble, making an audit even more important.

 

 

3. They’ll Help You Improve Your Credit Rating

A growing business is a thriving business, which means that you may need to secure more funding to pursue bigger projects. For this reason, however, you’ll need to make sure your records are clean, as financial institutions and shareholders will be interested in learning all about it. Regularly conducting audits on your financial statements will improve your relationship with stakeholders, financial institutions, and boost your credit rating. Since you have solid proof of your resources, lenders will be more likely to give you an affordable loan with lower interest rates.

 

 

4. They’ll Encourage Accountability in Your Business

An auditor’s report promotes responsibility and accountability for those in your company since your employees and managers know that an auditor will regularly check the figures in your financial statements. Your staff will come to rely on reliable numbers as well, allowing them to resolve any errors in their work while they are small, creating a thriving culture of accountability. As a result, your team will become more reliable than ever.

 

 

5. They’ll Help You Appraise Your Financial Situation

When you have a professional auditor review your financial statements, you’ll learn more about where you’re doing well and what needs more of your attention. If you have areas with perfect figures, then you’ll be confident of your plans in that area. However, if there are areas with major problems, an audit will tell you that you need to pay more attention to them. You can devise solutions to nip the issues in the bud before they hurt your business while giving you a more solid picture of your financial health.

 

Conclusion

Regularly reviewing your financial statements will do wonders for tightening your workflow and ensuring the numbers are reported accurately. It also helps you stay on the side of the law since you’ll understand the importance of complying with tax regulations. For these reasons, hiring cheap small business accountants to audit your financial statements will tremendously benefit your business.

 

Cheap Accountants in London provides a range of tailored accounting and taxation services to individuals, small and medium-sized businesses. Our services include corporate tax, auditing, company secretarial, business start-up, self-assessment tax returns, and many others. Contact us today for a quote!