Do you have a financial audit coming up? This can be a daunting time for a business and you will want to do all that you can to get prepared. All businesses are subject to audits and it is required that public companies submit quarterly and annual financial statements while private companies may want to go through an audit to attract investors or simply to ensure that everything is above board.
So, how can you prepare your business for a financial audit?
Go Through Previous Audits
A good starting point is to go through audit reports from previous years. This will allow you to familiarise yourself with the process while also allowing you to identify the areas that there were issues/mistakes before so that you can make sure that these areas are up to code this time around.
Perform Reconciliation Regularly
One of the best practices to prepare for a financial audit is to perform reconciliation on a regular basis either monthly or quarterly. This will help you to match up your records, avoid any complicated issues and ensure that exerting is as it should be for the audit.
Get Documentation in Order
You will also want to get all of the documentation ready for the auditor well in advance. They will send a list of the documents that you need and you should not wait till the last minute to prepare these documents, especially if they might be hard to find. Typically, this will include documents including the trial balance, inventory records, receipts, bank statements and expenses.
Ask Questions in Advance
If you are unsure about any of the details of the audit or what is required from you, it is important to ask questions in advance. This will avoid any complications, make sure that you are fully prepared and help you to feel more confident going into the audit.
Be Available
It is also a good idea to make sure that you and any key staff are available during the audit. You do not want to have important meetings or other important business to attend to while the audit is taking place, so try to schedule things around the audit so that you and relevant staff are always available if needed at all.
These are the main steps to take to prepare for an audit. It can be a stressful time, but preparation is key to success and will ensure that the audit is smooth, successful and quick.
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