Spencer Gardner Dickins
Businesses need to undergo a statutory audit each year once they cross the threshold. For businesses that are approaching that threshold, it is worth understanding what would help to make that audit go as smoothly as possible. If your business is more familiar with audits or coming up to your first audit, these tips might help you get the most out of the process.
Appoint an audit representative
You know your business best. This also means that you know who in your team would be best positioned to help manage an audit.
Rather than having an auditor bounce from person to person, giving them a single point of contact can streamline the process. Choose someone who understand the business, can access key information quickly and has the authority to coordinate across departments.
Gather your information
An audit involves reviewing your financial information.
If you want to make your audit efficient, you can gather up all relevant information before the audit begins. This prevents the auditor from having to track down files and figures or wait for them to be discovered once the audit begins. Often your auditor can provide you with a list in advance of what they will need through a user friendly online portal such as INFLO. That way you can upload the information ready for when they start work.
This will include bank statements, payroll information, leases, board minutes and documentation supporting key transactions in the period.
Be mindful of pitfalls
If you have noticed any issues in your own accounts throughout the year, you do not need to wait to be told to fix them.
Identifying issues and working to resolve them can streamline the audit process, as the auditor will not need to tell you something you already know. Be open and honest with your auditor about any issues identified during the year. The earlier the discussion, the easier the process will be. Auditors are experienced accountants and will have come across these issues before and therefore well placed to assist with.
Review old audit reports (management letters / letters of comment)
While not something that can be done before the first audit, any future audit preparations will have the advantage of a previous report to go off.
Any issues or concerns raised in the audit report should be addressed before the next audit so that the auditor is not rediscovering existing problems.
If there were any bottlenecks or issues that held things back, these can be handled before the next audit.
It might be that your filing system is still inefficient, or your audit representative struggled in the role. Learning from these experiences can make future audits more effective. Also don’t be afraid to have an open dialogue with your auditor on what can be done to improve the audit (something best done in person).
Make the most of audits
Some businesses fall into the trap of thinking that audits are purely compliance checks.
When the advice is implemented well, an audit can boost the productivity of your business by identifying failings and weak points before they become problems.
Take the audit report and transform it into a business plan that strengthens your finances for the year ahead.
Seek expert support
Our team are on hand to provide you with an expert audit or to help you put into action an audit report you have received.
As with most things, proper planning prevents issues later down the line. Are there any systems you could put in place now that you would use day to day that would not only make your life easier, but would make your auditor’s life easier too?... Auditors are always seeing different systems and processes. Why not ask them!
