Does my Small Business need a Financial Audit?

If you own a small business or have just opened, the question of needing a financial audit may have arisen. A financial audit is a good idea to have a second set of eyes looking over your business’ accounts. A yearly audit might also be a requirement of your investors as a condition to keep investing in your business. Auditors provide different services for when you may want to perform an audit on your business.

Checking Up

A yearly audit is similar to a yearly physical for your business. During a yearly audit problems might be discovered that you weren’t aware of. You might have an employee as your bookkeeper and not be aware of some financial transactions going on in your business. Having employees know that the business will be audited yearly will keep everyone on their toes.

Reporting

When an audit has been performed the CPA will provide a report that states that the business has reported within the regulations required for the type of business that it is. This is important for the fact that when it comes time for taxes everything will be reported correctly so there won’t be any surprises.

Public and Private Businesses

Public businesses (that are traded in the public market) are required by federal law to have a yearly audit done by a CPA firm. Private businesses are not required to have a yearly audit, but banks and private lenders may require an audit to know how their money is being spent.

Audits can be costly, but it is money well spent to not only know how financially fit your business is, but also to know that everything is going according to your plan and if not, it allows you the gateway to make changes. Contact Carolina Money Minders today for your small business needs!