Does My Company Need Professional Auditing Services?
Regular auditing helps to promote consistency and precision in your company’s financial reporting. It also helps to ensure that any financial statements you submit to the ATO are accurate, thus avoiding penalties. At Brown Auditing Services, we provide audit services and advice to businesses and organisations of all sizes and types across New South Wales, with a particular focus on charitable organisations as well as NFPs. Below, we examine what type of companies need audit services and why.
Auditing Helps Grow Your Business
Audit services provide valuable insights that can inform the future growth of your business, especially if you’re working towards a particular timeline for upscaling your business. An external audit can provide an overview of your finances and, based on performance and expenditure, help you pinpoint areas in which you can reduce costs.
Auditing is a valuable tool for improving the efficiency of your business in general and ensuring your internal controls are functioning well. An external audit is particularly helpful as a way to get a clearer, more insightful picture of your company’s performance. An objective, third party expert with a deep understanding of accounting and tax can offer strategic advice on how to improve your financial reporting practices.
How to Decide if Your SME Needs Auditing
Public companies of all sizes must have an annual external audit by law. Smaller, private businesses and organisations aren’t legally required to be audited until they reach a certain threshold of revenue, assets and employees. An audit may, however, be required or strongly encouraged under special circumstances, including:
- Applying for a grant:
If your business wants to obtain a government grant, sometimes an audit is required to verify proof of the financial figures you provide - Seeking a loan:
Some lenders will also require an external audit to be carried out before providing financing to small businesses to ensure they can repay their debts - Raising capital:
If you’re looking to attract investment into your company, an external audit can help build credibility and make your company a more enticing investment prospect - Selling your business:
Potential business buyers often want to see accurate, impartial financial reporting to inform their purchase decision - Going public:
If you want to become a publicly traded company by offering an initial public offering (IPO), you’ll first need to be audited to provide potential investors with accurate, transparent information on your finances
Even when it is not required by law, conducting regular financial audits is sound business practice that builds confidence among management, staff, suppliers, customers and other stakeholders.
Additional Benefits of Financial Auditin
Regular auditing can help business owners plan for major expenses and evaluate ongoing financial risks. A consistent understanding of your finances can reduce the likelihood of money management issues arising. Regular auditing also helps detect and prevent fraudulent activity, increasing scrutiny and reducing the risk of bad actors taking advantage of messy, disorganised finances.
Audit Services for SMEs in New South Wales
At Brown Auditing Services, we can help your small business ensure all financial reporting is accurate and follows professional standards in accounting. We help clients in a range of industries across Dubbo and the surrounding suburbs. Schedule a no-obligation consultation today by calling 0428 661 200 or contacting us online.