Why having an audit can boost your business

But it should be viewed as a positive process. Independent scrutiny of your income and cash flow statements along with your balance sheet can make your business more efficient, identify opportunities for development and help with continuous improvement and growth as well as ensuring compliance with policies and regulations.

Whitley Stimpson Director Laura Adkins said: “Our audit process highlights any weaknesses in a business and provides solutions to address them. We help identify potential areas of risk such as fraud or errors and suggest alternative approaches to enhance effectiveness and risk management.

“The added scrutiny provided by an audit enhances the credibility of a business’s financial statements, instilling confidence in stakeholders, investors, and other parties. This increased credibility can be particularly valuable when dealing with banks, suppliers or staff as it demonstrates the business’s ability to operate successfully in the long term.”

UK limited companies are subject to an external audit if they have at least two of the following:

• Turnover of more than £10.2m
• A balance sheet total of more than £5.1m
• More than 50 employees

There are also various other companies that are mandated to undergo an audit.  This requirement may stem from the company’s articles of association, a request by more than 10% of its shareholders, obligations to suppliers, or the necessity to meet banking covenants.  It is advisable to consult with your adviser to determine whether an audit is necessary for your business.

Bear in mind, an insufficient audit can lead to mistakes such as filing, and compliance deadlines being missed which could mean fines or even prosecution of the directors so it is important to embrace the process.

Whitley Stimpson has a team of highly experienced auditors specialising in a variety of industries dedicated to ensuring the process is carried out efficiently and thoroughly with minimal disruption.

Your auditor will really get to know you and your business with good communication and collaboration vital to ensure areas of concern are identified and valuable insights provided to improve financial reporting and business processes.

Laura added: “Many clients have a longstanding relationship with the firm before reaching the audit threshold. This familiarity allows for a smoother transition into the audit process.”

The importance of building relationships is embedded into trainees at Whitley Stimpson giving them a deep understanding of their clients’ businesses. This continually benefits both the client and the trainee as it minimises disruptions, ensuring a high level of service.

“However, we also recognise the importance of maintaining independence in the audit process,” said Laura.

“To address this, we carefully balance continuity with the need for impartiality by involving multiple team members in the audit process. This approach allows us to provide a high level of service while upholding ethical standards.”

Even if your firm is below the audit threshold or is exempt, having an audit can still be a highly beneficial process that can have a positive impact on many areas of the business.

Whitley Stimpson can help with non-statutory audits, including compilation reports and offer advice and solutions for financial reporting as well as providing ongoing support to identify tax opportunities.

“Undergoing an audit can actually enhance credibility of a business,” Laura continued.

“The goal is not to simply point out errors and criticise but to provide reassurance and support. Auditors are not out to find fault for the sake of it. Their aim is to ensure accuracy and compliance with financial standards and relevant laws.

“Ultimately, the purpose of an audit is to instil confidence in shareholders, protect investments and maintain transparency in business operations.”

For more information contact Laura on lauraa@whitleystimpson.co.uk