How to prepare your business for an audit

Getting ready for an audit is unlikely to be one of your favourite things as a business owner. But being prepared, organised and ready can take some of the pain out of an audit.

Planning for your audit helps your auditor get their job done more quickly, and also means there’s minimal disruption to your staff and business during the process.

Let's look at five key ways to be ready for an audit.

Many companies must carry out an audit of their business finances. The rules and regulations will vary depending on the territory you trade-in. Still, once you’re over a certain threshold for turnover or number of employees, an audit is likely to become a legal requirement. So, what can you do to make this process less of a hassle?

In advance of the audit date, be sure to:

• Gather all the relevant documentation – this will include financial statements, bank statements, expenses, management information and any other documentation your auditor will likely ask you for.
• Organise your documentation in a logical way. Well–organised financial data and documentation will make the whole audit far easier to complete. Make it simple for the auditors to find what they need and ensure easy access to all information.
• Identify any potential financial issues – the last thing you want is a giant problem coming up during your audit. So, it’s a good idea to check for any financial issues or irregularities the auditor may flag. Doing this well in advance gives you enough time to address any issues and resolve them before the audit begins.
• Be prepared to answer questions – your auditor will likely want to ask some probing questions about your business and financial records. Ensure you’re up to speed with your accounts and be prepared to answer these questions honestly.
• Cooperate with your auditor. The auditor’s job is to ensure that your financial statements are accurate and that your business is in compliance with all applicable regulations. This will be much easier if you cooperate with them, answer their questions with good grace, and quickly provide them with any information they need.

Talk to us about getting audit-ready

If you think your company finances might not be quite ‘audit-ready,’ you’re definitely not alone. Many businesses are not quite as organised with their financial management as they’d like to be. But don’t worry—help is at hand!

If you’d like some assistance with reviewing the health and organisation of your financial processes, we can help you get in control of your finances.