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Does your business need an audit? Here's how to decide

26th February 2018 Print

As Brexit negotiations continue at pace, it appears as though the UK government are falling foul of small business owners.

More specifically, a staggering 94% of SMEs in Britain feel as though the government are ignoring their concerns over leaving the EU, as they continue to entertain the idea of leaving the single market without a viable trade deal.

With this in mind, SMEs are becoming increasingly proactive in their attempts to secure growth post-Brexit. Undertaking a financial audit may help them to achieve this, but is this a process that would benefit your business? Here are some key considerations:

1. Has your Business Been Audited Recently?

Let's start with the basics; as if your business has recently undergone an audit it's unlikely that you'll need to undertake another one. 

Regardless of whether this was conducted by an independent service provider or HM Revenue and Customs (HMRC), this process should have provided a forensic analysis of your finances and the measures that you use to report your figures.

Given the depth of this insight, you should have enough information to identify any potential issues and make the necessary alterations. This negates the need for another audit, as this may actually complicate your findings and cloud your decision making going forward.

2. How Long have you been Trading for?

The age of your business is also a key consideration, as start-ups and relatively new businesses are likely to benefit significantly from an audit. 

After all, start-up ventures can struggle to generate and manage working capital, while they may also find it hard to minimise business costs and overheads.

An audit helps you to understand your finances and investment activity in careful detail, while identifying instances of excess spending and poor money management. These can subsequently be corrected, enabling your business to grow organically and evolve regardless of the wider economic climate.

3. Are you Willing to Work with an Independent Auditor?

It's perfectly permissible to conduct an internal audit, of course, using key stakeholders and reporting processes within the sector.

The issue with this is that it prevents your business from benefiting from an objective perspective and industry expertise, while it's important to note that service providers such as RSM also have access to the very latest software and reporting technology.

This means that you may be able to access more detailed information as a business-owner, which can inform your future decisions and enable you to unlock far greater efficiency in the future.

So, if you're willing to work with an independent auditor, reviewing your businesses internal finances can deliver exceptional results.