Auditing ensures that the business maintains its accounts accurately and properly. The process is conducted by a licensed auditor who is not related to the business. Therefore, the job can be done without any biases. The auditor reviews all of the company’s financial details. It also includes ensuring that the business is compliant with regulatory policies and standards. 

While audits can be stressful, they show that your business is trustworthy. Not only the big ones but even small businesses may go through an audit. To ensure the process goes smoothly, it is important to take the right steps before, during, and after the audit. One of these steps includes having north palm beach bookkeeping services. 

Tips to successful financial audit for business.

  • Plan for the audit.

Many professionals often face problems as they fail to plan for the audit beforehand. Planning for the audit is very crucial as it sets clear expectations. Hiring a professional for this work is highly recommended. It will save you time searching for the paperwork and allow you to focus on other important business aspects.  

  • Get organized.

It is time to get organized and start planning to run your financial operations.  To make sure the procedure goes smoothly, organize every supporting document, such as statements of work, contracts, purchase orders, invoices, vendor contracts, bank statements, etc. 

Store all the documents carefully in one place. This will allow you to provide the documents to the auditors and save time quickly. 

  • Stay up to date.

To stay up to date with financial regulations, it is highly advised to regularly check reliable sources online or reach out to your auditor monthly. They will inform you about any changes affecting your accounting practices. To avoid the burden at the end of the year, make sure to review the updates regularly.  

Also, if you are making any changes in your business, such as removing or adding a product line, make sure to update your auditor as well. They can advise you on necessary accounting adjustments if needed.

  • Analyze the company’s tax records.

Another important step is reviewing your company’s tax returns and records, which should be kept for at least seven years. You can use IRS receipts to check for any discrepancies or errors in your tax records, such as the taxes paid and tax liabilities. Also, review recent tax credits and deductions claimed to make adjustments wherever required.

  • Create checklists.

Create a checklist for monthly and year-end financial closings to guide your accounting team. Include tasks like reconciling bank accounts, adjusting accrued expenses, and updating deferred revenue. This helps you ensure all bank statements match your records accurately and everything is prepared for the accounting period.

A bookkeeper can help you plan, organize, and stay up to date with all financial matters, making the audit process stress-free. Hire one today!