While an audit can sometimes take the focus off the day-to-day operations of the company, an audit is an independent perspective of the company, which is highly beneficial for verifying financial statements, operations, and internal controls.
Prior to conducting an audit, the company must have the required documents in hand. Preparing for an audit beforehand helps streamline the process and ensures that the audit goes as smoothly as possible. Here are some helpful tips to help you prepare for an effective audit:
Complete monthly reconciliations
While month-end reconciliations might seem trivial and routine, they help greatly if issues arise during these reconciliations. Issues can be resolved on a time-basis, rather than during the audit.
Keep track of what is accounted.
Keeping track of what will be accounted is a first step towards preparing for your audit. You can request an information list from your auditor early on in the year to prepare the required documents and avoid unnecessary work.
Set realistic timeframes.
Setting aside realistic timeframes for audit preparation and the audit process is important in reducing setbacks during the audit itself.
By allocating a few hours a week to ensure that audit preparation is going according to plan helps greatly in avoiding a bigger workload closer to the audit.
Think ahead and seek professional help.
Irrespective of your business size, external audits help authenticate achievements and lay a strong foundation to fulfill future goals.
Auditors do not act with the intention of finding wrongdoings, rather, they act proactively and contribute sustainable growth to their clients’ business.