5 Benefits of Auditing Your Company's Financial Statements in California
A Roseville + Sacramento tax accountant at Cook CPA examines the advantages of a financial statement audit for your company in California. Identify key benefits of auditing your company's financial statements in California.
Performing audits of your company’s financial statements has many benefits for the long-term health of your company. Using the help of an accountant to perform an audit of financial statements can benefit your company by allowing you to accurately understand the amount of money you spend, spot fraud before it has a negative impact on your business, enhance your ability to do business with other companies, make it easier to expand your business, and make it easier to pay your taxes. Get in touch with the Roseville tax audit accountants at Cook CPA Group soon to learn more about using their services to perform an audit on your company’s financial statements. Call (916) 432-2218 to make an appointment today.
The Benefits of a Financial Statement Audit
There are few things as beneficial for the success of your company as a financial statement audit. Five notable benefits that can result from an internal audit of your company focused on financial statements are outlined below.
1. You get an accurate perspective on the amount of money you spend.
An audit of your financial statements will give you an accurate picture of the money you spend and your current financial standing. Knowing the full scope of your finances can allow you to assess both your strengths and weaknesses and adjust your practices to gain or maintain success in the future; it’s also a good starting place for thinking about profit and loss in your company. Having accurate information about your company will also benefit you when dealing with people whose money is involved in your company, such as shareholders, potential investors, and even customers. Being aware of the details of your financial life is important because they affect all other decisions you may make about your company’s future.
2. You can more easily prevent fraud.
An audit of your company’s financial statements can help prevent fraud and spot it if it is already happening. An audit can show signs of fraud before it happens by revealing places in which your company is vulnerable to risk, which can allow you to prevent fraud. And since an audit of financial statements can uncover revenue that has gone unreported or underreported, it can test your company’s internal controls and determine whether they are effective. A financial statement audit identifies inconsistencies and incongruities in finances, which can ensure that all transactions within the company are honest, accurate, and properly secured against misuse and misappropriation.
3. Audits improve your ability to do business with other companies.
Financial statement audits allow your company to do business with other companies more easily. If another company requests to see information about your company’s financial health, an accurate financial statement can make fulfilling that request a simple matter. And since you will be fully aware of your company’s standing, you’ll be able to identify companies that are compatible with your goals and objectives. If your company applies for a loan to be able to enter into a new venture, you’ll be prepared to more easily show your history of sound investments to the lender. Since a financial statement audit can help you prevent or stop fraud, you will be able to enter into agreements secure in the knowledge that the risk of misappropriation is low.
4. It’s easier to expand your business.
One of the most important benefits of having a financial statement audit performed on your business is that it can help you expand your business. A financial statement audit will allow you to make decisions about expansion that account for every aspect of your company’s finances. If you can accurately identify where you are now, you can be more specific about where you want to take your company next. An audit of your financial statements will allow you to identify whether your company is meeting benchmarks and standards accepted by the industry it does work in, which can increase its overall profitability. An audit can also help you determine whether your company is following best practices for recordkeeping and organizational structuring. An accountant will be able to recommend ways to optimize practices and procedures that will improve your ability to expand and grow through a financial statement audit.
5. Paying taxes is more manageable with a financial audit.
Taxes are more manageable following an audit of your company’s financial statements. If you’re fully aware of your company’s finances, you’ll be less likely to face unexpected issues or notices from the IRS when it comes time to pay your taxes, whether they be corporate taxes, sales taxes, or another type of financial obligation. Since you’ll be aware of any potential issues long before it’s time to pay your taxes, you’ll have more time to properly identify claims and deductions.
Financial Auditing Services Available for Companies in California
If your business is interested in having a financial statement audit, you should seek the services of an accountant who has experience with this type of audit in California. The accountants that work with Roseville and Sacramento accounting firm Cook CPA Group can put their skills and experience to use to audit your business in a way that will allow you to more easily identify your company’s strengths and weaknesses. If you would like to schedule a free consultation to discuss a financial statement audit with Cook CPA Group, get in touch today by calling (916) 432-2218.