Nobody is excited about getting a colonoscopy. We all dread them. The experience sounds invasive, inconvenient and unpleasant. But if we want to live long, healthy lives, we need to get one at some point. You may not realize it, but just as a colonoscopy is a necessity for a long, healthy life, regular audits are vital to the long-term health of your business.
Audits Are Nothing to Be Afraid Of
Often times, we hear the word audit and grimace. It can elicit fear. It can make us feel as if we have done something wrong, or more commonly, like our income will take a hit. But these misconceptions couldn’t be farther from the truth.
Audits Help Assess Company Risks
Like a colonoscopy, opting to have regular audits often uncovers issues that would have otherwise remained unknown or unaddressed.
Nothing is more dangerous than the unknown. Avoiding getting the colonoscopy you need allows issues you don’t know exist to get worse.
If you fail to act, by the time the issue gets so serious it does reveal itself, it could be so pronounced that treating it is nearly impossible.
Similarly, having annual audits conducted can assist in assessing the financial health of your business. Audits can uncover issues such as inadequate or ineffective controls, fraud risks and in some cases, overspending. Audits may also be performed to comply with regulatory requirements, franchise agreements and bank covenants.
Audits Encourage Transparency
Through testing, audits can assist in detecting fraudulent transactions. When fraud does occur, a company’s executives are typically responsible.
Fraud can go undetected for long periods of time and can lead to significant losses that can cripple a company. Having external experts examine the financial statements will reduce the risk of fraud going undetected.
Audits Can Prepare Your Business to Grow
By simply preparing for an audit, you may identify areas of loss or inefficiency, which is crucial for smooth growth in any organization.
Having regular audits will make it easier for you to expand your company should you seek external financing. Whether your company seeks a loan from a bank, loan agency or private investor, historical financial statements will be required. In most instances, you will be required to submit these financial statements for an audit.
Together We Make It Happen
At HLB Galanis & Co. we have a fully staffed audit department. We aim to make audits painless and work efficiently to keep audit costs low. By utilizing technology and modern audit techniques, we are able reduce the audit timeline and increase turnaround speed.
We pride ourselves on working with you to not only complete the audits, but to add value to your organization.
Don’t skip that colonoscopy or audit this year. It may be just what the doctor ordered.