There are many reasons why you should always have your documents audited by a trustworthy accounting firm. There are many different ways where keeping audited documents can be of benefit to your business. Here are some of the ways you will need to use those documents.
When you need some funding for your business, you will have to look for the best borrowing option from different institutions. One of the options is to approach a bank for a business loan. The bank will want to assess your business to determine the amount of money to lend you. Thus they will need your business documents to verify your income and confirm your business loan capability. The bank will ask for the following financial documents to help them assess your creditworthiness:
- Profit and loss account statement
- Cash flow statement and
- Balance sheet
When you present documents audited by an accounting firm, the papers carry more weight as they indicate that they are a true reflection of your business position.
There are several other organizations where you will need to use your professionally audited accounts of your business. If you are a publicly owned company, the securities and the exchange commission will scrutinize your audited accounts. Also, some suppliers will want to establish a supplied credit with your business. But that will be after they study your audited account and confirm you are creditworthy.
Investors who have shares in your business and those who are assessing the availability of your business will want accurate information and an actual position of your business. Therefore they will want to have an accountant’s report on your business. That is the only way they will ensure they look at a fair, credible, and accurate report about your business.
What the Auditor Reports about Your Business
The Work of a certified accountant will check that you adhere to all rules of business operations. The expert will check whether you are following the proper business operation procedures. They will carry out the following checks:
Then the expert will need to understand your business and the entire industry to assess any possible risks in the way you are operating the business. They will also carry out internal control testing to assess the company’s control measures in place. That is to know whether no external forces are affecting your financial statements.
You need to set control measures to protect your business. The auditor will point out if there are areas where there are loopholes that you need to seal to ensure maximum safety for your business.
The expert will also need to check on your procedures and point out everything you need to include in your procedures to protect your business. Some of the most critical procedures include bank confirmations, physical authorization checks of your inventory, among others. They will point out everything you need to do to ensure the total security of your business.
The expert will give you any of the three opinions after auditing your financial statements. They can either give unqualified or unmodified opinions where everything is done per procedure and needs no changes. A qualified opinion is where there are some changes that you need to implement in your business operation, and an adverse opinion is where there is some deviation from acceptable accounting standards.
It is always advisable to have all the above checks to protect your business and access financial assistance without hurdles.
Contact us at (480) 558-4400 if you would like us to help you with your financial statements.