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Iceni Magazine | July 3, 2022

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Don’t Be Afraid of an Audit for Your Business

Don’t Be Afraid of an Audit for Your Business

There are always adverse reactions when business people hear the word “audit” since they think it means they are in trouble.

While outside sources often ask for audits, an internal audit can be an excellent tool for any company. A proper audit can significantly benefit any business operation. Professional accountants in Central London like those at www.gsmaccountants.co.uk can ensure that the results are beneficial for your company. Here are some benefits you can expect from a good audit.

Detects and prevents fraud

It can be surprising how much fraud happens in a business. Whether it is a small one or a large corporation, the temptation of skimming a bit of money can be hard to fight. Unfortunately, clever fraudsters can ensure that you are unaware of the cheating. This situation is where a good audit comes in. A thorough check of your company’s finances can reveal the discrepancies. Complete audits will go through every expense and see if they are correct. In the end, you can be sure to identify anyone who defrauded your company, whether inside or outside.

Pinpoints inefficiencies

Another reason you need an audit is that some money losses don’t come from fraud. Instead, they come from inefficient processes. Audits reveal this to you and allow your company to correct them. For example, if you are spending a lot on deliveries, it might be better to invest in a company van or truck. An audit can also help you discover your largest money sink. This revelation can lead to a closer look at what is happening. A good example of this situation is learning that your manufacturing costs look incredibly high. An investigation can reveal why you are spending so much. You can then take steps to lower costs.

Helps in planning

Every company needs to plan for its future. If you don’t know what to do at the beginning of the year, your business will be in trouble. This situation is where an audit can help. It shows you your profits and losses, which greatly helps in future planning. For example, an audit can reveal which products and services earned the most money in the last fiscal year. You can then focus your company on improving and expanding those. Additionally, knowing what products lost money can allow you to make a strategy to eliminate the products even with minimal losses.

Something to present to investors

An audit report is also an excellent tool for presentations. Bring your latest audit report whenever you have to go to potential investors. A positive audit shows your company is profitable. It also reveals that you know how to run a business. That can encourage investors to trust you with their money.

A good audit is like doing spring cleaning. It clears out the cobwebs and all the hidden dirt inside your business. The information you can get from one can allow you to make company improvements that only result in profits. So, schedule one regularly to ensure your business success.


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