Auditing is the process of checking your financial statements and then giving an opinion about whether the financial statements have been prepared in the right manner and whether there are any material misstatements in the books. All public limited companies are subjected to an audit before their books are prepared. This is a statutory requirement that must be followed by all companies that are listed on the stock exchange. However, smaller businesses, such as small partnerships or sole trader businesses, don’t really need to worry about audits. It’s up to you to decide whether you want to get your books audited or not. However, it is highly advisable that you get your business audited at least once every two years. Here are some reasons as to why this is such an important component of running a business in the modern age.
Find Out What’s Wrong
If there’s an employee who’s been siphoning cash from your company, the auditor will be able to identify the leak immediately. Companies that offer audits in Tulsa, such as Muret CPA PLLC, work with knowledgeable auditors who have years of experience in checking accounts and books. The auditors will be able to identify if there are leaks in your books and they’ll help you shore up your cash flow.
Investor Confidence
In order to grow your business, you will need to pitch your company to other investors. Funding is necessary for virtually any business that wants to grow. Investors are generally more keen towards business that have had audits done for several years in the past and have prepared their financial statements properly. It shows that you are accountable to the investors and that you value their money and input. It also proves to your customers that there’s no wrongdoing going on in the company and that everything is transparent in the financial statements.
