In accounting, accuracy is crucial. Incorrect or improperly reported numbers can lead to all kinds of problems, from misguided strategic planning to cash flow issues, which could even leave you unable to pay employees. But how can you be positive your numbers are accurate?
The answer is an audit. A thorough examination of everything from specific transaction testing to financial statement report presentation, an audit performed by a CPA can be the assurance your company needs to proceed with confidence. Here’s what you can gain from audited financials.
Improved Management Decisions
Managers and executives rely heavily on current financials, budgets, and forecasts to make business decisions, like hiring new team members and launching new lines of business. Errors at this stage can be critical, so it’s important for management to work with the most reliable information possible.
Audited financial statements can provide an extra layer of confidence, allowing management to make specific changes that can promote positive corporate growth and development with the knowledge that the key numbers they are using are correct.
Many companies rely heavily on investors to fund their businesses, from traditional stockholders to angel investors. However, most savvy investors won’t move forward without audited financial statements.
Providing audited results to investors can increase your odds of receiving crucial investments, helping your business to avoid cash flow issues, and better plan for the future. Audited financials can also result in better investment terms, possibly even larger consideration in exchange for reduced royalties or equity.
Better Lending Terms
For some businesses, especially those seeking acquisitions or planning large capital expenses, third-party loans are essential. Banks and other lenders generally limit activity to only proven companies with solid business models, restricting access to those without trustworthy reporting.
An audit can provide the verifiable records banks and other lenders like to see, increasing your odds of receiving a loan – and better terms and interest rates.
Employee attitudes can play a sizable role in company morale and, consequently, quality of work. When employees are left in the dark or offered inaccurate information, they are far less likely to trust you, be loyal to you, or put in extra effort on your behalf.
Providing access to audited financial statements can build confidence in your legitimacy as an employer. This demonstrates your commitment to your team members, and could ultimately boost job satisfaction and performance in a way that can yield tangible benefits for your business.
Customers often spend significant time making purchase decisions, researching online, reading testimonials, and reviewing background information on company operations. Influential information can range from financial records to charitable donations; though ultimately every piece of data you make available can influence potential customers.
When you release audited financial records, consumers are far more likely to have confidence in your capabilities, building loyalty and boosting customer retention.
From management decisions to employee trust, there’s a lot to be gained from seeking an audit of your financial statements. If you want to be sure there are no issues with your books, Klein Hall CPAs is happy to help. As a top name in Naperville accounting firms, we can offer everything you need to keep your business moving forward. Get in touch today!