5 Reasons why SMEs Should Get an Internal Audit

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Audits can be stressful because they require an in-depth look into your company’s records, processes, and strategies. Though the auditing process may seem overwhelming, particularly for newer businesses— undertaking regular audits are vital to ensure transparency as your business continues to grow.

Here are five reasons why you should consider an internal audit:

1. Increased Credibility

Auditing involves a full examination of all financial statements, receipts, and invoices. Undertaking an audit increases credibility and trustworthiness for SMEs that hope to engage investors or apply for loans. By proving consistency and objectivity throughout the auditing process, SMEs become more eligible for further opportunities

2.       Complete Transparency

A regular auditing practice ensures financial transparency and protects businesses from fraud.

3.      Targeted Analysis

Audits help in recognizing and categorizing a business’s strengths and weaknesses. An audit report recommends more effective and efficient systems that businesses can factor into future plans. It also allows for the correction of problems in a timely manner, improving internal operations overall.

4.       Simpler Taxes

A common challenge for many start-ups and SMEs is having the resources to set up a robust and automated accounting system. Auditors lend their expertise in these areas to help you choose the right accounting software for your needs as a business, making any tax-related paperwork and bookkeeping easy to keep track of.

5.       Increased Competitive Advantage

Regular audits increase your competitive advantage by making targeted recommendations aimed at improving all business processes. An auditor won’t just review the financial side of things, they will review the entirety of your business and organizational structures to identify any loopholes or inefficiencies

The objective perspective that auditors bring is invaluable, and as small firms move toward meeting their growth objectives, regular audits prove a useful tool in helping them achieve their goals. An external presence can often inspire a new approach to analysis, and their recommendations can inform more efficient ways to undertake strategy implementation.

Book an appointment with our financial analysts here and discover how you can conduct an effective audit for your business.

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