As a business owner, it’s your responsibility to keep your finances in check. Failure to do this can result in financial trouble, which could lead to the demise of your company. Losing control of your finances is one of the most common causes of business failure, so it’s something you’ll want to keep on top of.
An audit is the easiest way to assess the financial health of your business. Audits can be done internally or you can outsource to an external professional. We recommend outsourcing as it offers a wealth of benefits for your business.
Our article will discuss what an audit is and the main reasons you should consider instructing professionals outside of your organisation. Continue reading to find out more.
What is an external audit?
An external audit is when an industry professional outside of your business independently reviews your financial statements. They’ll be assessing the accuracy and fairness of the statements and provide a comprehensive report for you to review.
Companies with an annual turnover of £10.2 million, have more than 50 employees and assets worth over £5.1 million require an audit every year.
Why should I outsource my company audit?
Reduced costs
With so much economic uncertainty and a cost of living crisis, you should be looking to cut costs while taking on tasks like an audit. Outsourcing cuts your need for an internal audit team. This means you’ll have a one-off payment annually and won’t need to increase your wage bill to bring in a whole new audit team.
If you do have an internal audit team, you can improve your efficiency by outsourcing some of the tasks. This should free your team to focus on other tasks that can drive your business forward.
Take advantage of expertise
External auditors will have specialised knowledge of the auditing standards and regulations of your industry. They’ll be able to offer specialist insights to support your future financial planning and reporting.
Better objectivity
If your auditor is outside of your business, they won’t have an emotional connection with it. This ensures they approach the job with full objectivity, allowing them to compile the most accurate report for you to assess.
They won’t shy away from providing constructive feedback and shouldn’t hide any irregularities that’ll make your business look bad. This should help to improve compliance.
How to choose an external auditor
If you’re looking for a reliable auditor to assess your finances accurately, find one that has the following credentials:
- Specialise in your industry
- Good reputation
- Qualifications
- Leading technology
- Recommended by others in your industry
- Good customer service
Auditing is an important part of many businesses in the UK and could provide valuable insights into the financial health of your organisation. Get yours arranged now to take advantage of its benefits.
