Most of us feel a cold chill crawling down the back of our spine when we hear the word audit but you’d be surprised by how beneficial it can be when it comes to the success of a business. Accounting firms in Adelaide can provide you with an auditor who also has a great deal of experience as an accountant as well.
So what are the benefits of an auditing accountant? Most business owners spend a great deal of time deal with so many things that it can be overwhelming. It’s difficult to keep track of everything that is going on in the financial side of your business when you are busy with hiring people, looking for more ways to make money and running the company. An auditing accountant has one goal and that is to record, report and analyse the company’s financial data.
An auditing accountant can provide you with a thorough understanding of the accounting process. They will even give you valid accounting advice after reviewing your company’s accounting information. This is important because if a business is looking to get a loan from an investor they will need to have all of their accounting information as up-to-date and as valid as possible.
In addition to validity, an auditing accountant can also discover mistakes that your in-house accountant may have missed. If your business is a small business, that in-house accountant might be you and since you have so much on your plate, you might not realize that you made a mistake. Improperly managing accounting information can make it difficult to do taxes or make budget estimates. The last thing you want is to assume that you made a great deal of profit in one quarter, give your staff bonuses based on that information, only to find out that the accountant information was not correct. That’s a sure-fire way to lose money and have your company go under.
Tax issues can also arise if your financial information is not accurate. In some cases, this could lead to legal issues such as tax and investor fraud charges. An auditing accountant looks for all of those potential problems and sorts them out so your company won’t end up like Enron. A lot of the times, business owners don’t realize that by overstating the value of their inventory or the amount of income they are making, they can end up paying more.
The biggest benefit that an auditing accountant can provide to a business is knowledge and education. By providing you with accurate data on your financial status and the issues that they have uncovered, you will be able to see where you are earning money and where you are losing money. They can even give you with advice on how you can improve your company’s bookkeeping techniques.
So not only will an auditing accountant help you to save your company’s precious money, they will also reduce the chances of you getting audited. And trust me. You are better off having an accounting firm audit you than the government.