An inefficient accounting system can cost you money. Duplicating payments, overlooking billing errors, and over paying taxes are just some of the ways that inefficiency in your accounting can cost your business. Problems with accounts receivable aspects, such as delaying the sending of invoices or neglecting overdue accounts, can also take a bite out of your profits. If you have concerns about the efficiency or effectiveness of the accounting operations of your business, then consider hiring a professional to conduct an Audit for you.
Errors
By discovering how your accounting system is costing you money, you can work on solving the problems, which will increase your profits. Not only will an audit find your accounting errors, but it will also find out why errors were made. For example, if overpayments are being made, an audit can discover the reasons for it. It may be that your software needs an adjustment, or it could be an error in the practice of your accountants. If you are losing money in many ways, such as over payments, duplicate payments or accrual errors, then an audit will detect the number and scope of the errors. Every error that costs you money reduces your profit margin, and understanding the reasons behind the errors is crucial to preventing the same kind in the future. Whatever the accounting problem may be, an audit is the first step towards solving it.
Business Growth
If your business has grown, it is likely that your accounting system may not be growing with it. More business means more complexities, and complexities lead to errors. An audit of your accounting practices can determine if there is a need for additional employees in your accounting department, or if your current employees need additional training to manage new responsibilities. While good accounting software is a great start, your employees are just as important. Especially with the changes each year in tax laws and regulations, it is important that your accountants are up to date at all times on all of the tax changes that affect your bottom line. A Forensic audit can reveal errors that have occurred in deductions that are costing you money.
A complete analysis of your accounting system by a professional and experienced auditor can not only find and recover errors, but it will help you devise new financial strategies. The percentage of the recovered money paid to the auditor will be made back many times over by finding and solving problems in your accounting system. Even errors of a few cents can add up over time, and audits often find errors considerably larger being made all of the time.
