Accountants handle all aspects of a businesses’ financial transactions, from sales to expenses to payroll, and more. Auditing is a process that is often used in accounting to verify the accuracy of a businesses’ operations. Many people are unclear on exactly what auditing is or how it can help your company. Most accounting firms are able to perform internal audits that can identify weaknesses in your operations and provide you with concrete suggestions for improvement. Auditing and accounting can work together to help ensure you business is running as efficiently as possible.
What is an audit?
An audit is actually a term that can be used for any systematic review and investigation of a business operation. There are many aspects of a business that can be audited – safety, customer service, and human resources, for example. Virtually every aspect of your business can be audited. However, in an accounting context, auditing refers to a thorough review of all financial records, as well as the systems and policies that are used when capturing these records.
How can an auditing and accounting help your business?
Financial audits are very important for many reasons. First, they help keep your systems in check and assure that there are no major errors that could be costly for your business. Having regular audits can actually save you money in the long run, because they can identify situations and processes that are causing you to lose money. Audits can also help make your business practices more ethical, which could help you avoid problems such as lawsuits or government fines in the future.
Additionally, auditing can help to make your accounting processes more efficient. An audit will identify places where you can process money more easily, eliminate unnecessary costs, and complete necessary paperwork or other tasks more quickly. Having an accountant do a full audit will help you find problems that you may not have realised that you had, as well as identify places where you could implement new technology that may be useful to your company.
Most accountants and accounting firms offer auditing services. There are two types of audits – internal and external audits. An internal audit is when your company’s personal accountant does the audit. These are usually more informal. An external audit is when a third party service does the audit. These are generally more beneficial and thorough than an internal audit. Every business, from a small start-up to a large corporation, can benefit from having their company audited financially. If your business hasn’t had an audit, contact BIS Cosgrove today to set up an audit with one of our Gold Coast accountants.