No matter the industry, audits are a key component of managing the financial success of any business. Many companies have internal audit teams that pour over data during the summer months to determine if everything is accurate and accounted for. Yet, there are always risks to this. Not only does it take your staff away from their primary goals and tasks, but it also can lead to biased results. Rather than allow this to happen, consider the benefits of turning to a third-party auditing service instead.
Why Are Third-Party Providers Better?
Getting your audit down by someone outside of the company makes good, financial sense. Audits are eye openers and in every situation there will be some evidence of mistakes, errors, or even fraud. Consider the following reasons to turn to a third party provider for this information.
Perhaps the biggest and most important reason to have an external audit is for the objectivity it will provide to you. Management within the location, including your loss prevention team, have a tendency to be a bit more subjective than should be allowable.
Reduced Business Impact
Your labor resources are better spent on your business than handling the long hours of auditing. In many instances, audits play an important role on the management of the business, but you must keep up with day-to-day tasks as well. A third party solution reduces the impact on the everyday workload. This may also help you to better manage the costs of operations, especially if you have to bring in additional labor during audit season.
Another reason to turn to an external audit team is for the accuracy it affords you. You’ll learn about long-standing problems with non-compliance. You will have a fresh set of eyes looking at the details of your business. Often times, initial results provide lower audit results, but these are opportunities to improve your bottom line.
No matter who you are or who is on your audit team, you want to believe in that team. Yet, there is always the risk that something may not be accurate. Simply having that validation that the audit is accurate, authentic, and not biased can help you, as the business owner to feel better about this business.
Your business is valuable to you. It must run efficiently. You count on your team to be accurate, but ensuring this occurs is difficult at best. With an external team handling your auditing, you can have the confidence you need within your business.
Here at Hamblin CPA, we would be happy to help you plan and manage your business budget. Click here to request information.