Financial statements are a key part of running a successful business, providing a foundation for evaluating performance, planning for the future, and increasing efficiencies in the workplace. Despite the importance, however, not all financial statements are perfect and human error is a part of the process. Without strict oversight and professional review, your reporting fails to carry the weight it could, planting seeds of doubt in management teams, investors, and creditors. An audit, however, can clear the air, providing some assurance that what you have to say is legitimate and credible.
The Auditing Process
Instead of simply assuming your methods are sound, a professional auditor can provide the assurance you deserve. By scrubbing financial records, reviewing evidence of transactions, and confirming assets, debts, and equity, an auditor can verify the accuracy of your reporting and the honesty of the information you are presenting, adding a high layer of quality control to your processes.
How Audited Financial Statements Can Help
Audited financial statements can offer numerous benefits to your company, providing a proven process that can guarantee transparency.
Anyone can generate financial statements with software like QuickBooks or Excel. While the ease of use is a benefit for businesses on a budget, this factor can decrease the legitimacy of your reporting. A professional audit can help instill trust in your management team and investors, offering peace of mind while assuring them that, yes, your financial statements are up to par.
Provide Better Information
Communications with investors and creditors is a big part of securing funding, especially for a new business or a growth business on the rise. Audited financial statements provide a proven snapshot of what your team is able to accomplish, communicating verified revenue, gross profit, and EBITDA numbers to those who will use your reporting to make a decision about your worthiness. The more reliable your reporting is, the more likely you are to secure the funds you need.
Enhanced Board Reporting
Your relationship with your board of directors is very important. When you want to instill confidence and best communicate the changes and developments in your business, audited financial statements can enhance your reporting. By giving your board sound data and verifiable results, it’s more likely that your directors will make sound decisions regarding the direction of your company.
Financial statements are a big part of evaluating performance, providing a benchmark internal teams can use to compare revenue and costs to budgets, forecasts, and prior year achievements. When financial statements are audited, these conclusions will be much more meaningful, providing access to verifiable results that can be reliably used when planning for the future.
Make Auditing Easy
If you want financial reports you can trust, Klein Hall CPAs can offer the support you need. As area experts in the small business audit space, we’re able to help you review your financial statements, audit bookkeeping systems, and test reporting procedures to ensure your statements are truthful and accurate. Contact us today to see what our CPAs can do for you!