For many entrepreneurs, the simple reading of the phrase “financial audit” is enough to cause migraines. Indispensable to ensure the good health of the company, this review of accounts unfortunately suffers from a bad press. It should not be so.
Led by a chartered public accountant, the financial statement allows you to know whether your accounts are accurate and especially if they are trustworthy. Also known as a legal audit, it allows the promoter to make informed decisions, thereby extending the life of the company.
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Despite all its strengths, this audit is often viewed from high by promoters. What an injustice when you know how beneficial it is…
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1) Comply with the regulations in vigour
At the head of an SA, LLC or SAS? In order to avoid being prosecuted, you have no choice but to conduct regular financial audits. Given your legal form, this is an obligation from which you cannot evade.
The same rule applies to publicly traded companies. Do you really think your shareholders are going to settle for your words? That nenni. In order to maintain their trust (and because you have the legal obligation to do so), you will need to perform a business valuation at regular intervals.
For example, all companies registered in CAC 40 are required to undergo a statutory audit twice a year. In case of a tax check, you would not want to have breached your duty.
Plan de l'article
- 2) Financial audit allows you to make decisions Illuminated
- 3) Convincing other stakeholders
- Estimate the financial valuation of your business for free
- Start 4) Adopt the right strategy with financial audit
- 5) Demonstrate good faith
- 6) Harmonizing operating modes through financial audit
- Successfully complete your future operation
2) Financial audit allows you to make decisions Illuminated
The fact that the law exempts you from auditing does not mean that your business does not need it. SMEs, artisans groups, associations, multinationals… If you are at the head of an activity, you need the expert advice of a chartered accountant.
You are free to choose the date, frequency and audit mode. Using the services of a permanent member of the organization will allow you to put your finger where it hurts and set realistic goals. However, be careful not to let the internal auditor’s emotions get across his way…
For ad hoc missions or small companies, it is better to consider conducting an external audit. More emotionally detached, the accountant is better equipped to check accounts and detect possible flaws.
In a way in general, it is recommended that a financial audit be conducted once a year, if possible at year-end. In doing so, the listener will have enough data and a step back to detect potential anomalies. In addition, carrying out an annual assessment of the state of affairs allows us to examine the evolution of the company.
3) Convincing other stakeholders
A company is anything but an entity that evolves in isolation. Banks, suppliers, partners… It is a member of an ecosystem in perpetual movement and where trust is required. However, the latter often fits on a razor wire…
To convince other actors of your reliability, there is no point in declare long speeches, no matter how charismatic you are. Instead, present them with a legal audit attesting to good health financial of your company.
When it comes to reassure investors or shareholders, the public accountant is the ally you can’t do without. At the time of undertaking valuation , he will write a detailed report on the state of his accounts. Thanks to this very explicit document, gaining the confidence of other stakeholders will become a real breeze.
Estimate the financial valuation of your business for free
Start 4) Adopt the right strategy with financial audit
When you set up your case, you knew exactly where you wanted to lead it. But do you really know how to proceed? How do you intend to define a truly effective attack plan if you are unaware of the strengths and weaknesses of your company?
After examining every cog of your business, an accountant is able to guide you in the implementation of a development strategy that will bear fruit.
Maybe despite your beliefs, it’s not the marketing budget that is plumbing your structure, but rather costs too high… Maybe your current accounting system does not take into account certain taxes and therefore makes you lose money… Sometimes the flaws are present but invisible to employees.
If during the valuation enterprise , the expert detects a problem, he will make recommendations to you. These will allow you to optimize production lines and minimize losses.
Special case of acquisitions and restructuring
When a company is about to join the ranks of another group, financial audit is a key document. In this case, the use of an external auditor is systematic in order to avoid all forms of bias.
To ensure that none of the parties are injured, the accountant will be responsible for:
- Verify invoices and bank statements;
- Review the capital of the company;
- Synthesize important information so that it is easily understandable;
- Isge recommendations.
Once its report is submitted, each party may take appropriate action. For the purchased business, there is usually a question of putting in place measures to revive the activity. On the part of the acquiring company, a legal audit reduces risks and makes it possible to plan the merger with more serenity.
5) Demonstrate good faith
It is often forgotten, but a financial audit is not necessarily linked to a divestiture or a pitch. In addition to the above-mentioned advantages, it can be used to attest to the proper functioning of the company.
The conduct of audits at regular intervals demonstrates that the company is implementing professional recommendations to the letter and takes into account vigor. No matter how bad this review is associated with negative events such as tax evasion or deposit balance sheet…
For the conscientious manager, frequent legal audits flow from source. It is an act that is an integral part of his routine and which would not happen to the world for anything.
6) Harmonizing operating modes through financial audit
Try to imagine a collaboration where the two people are only at their head… Now imagine that they are not two creators, but a dozen employees… What a mess!
In a company, if each employee works according to their own mode of operation, this is the insured disaster. Even worse when it comes to processing financial data.
By taking the time to conduct an audit, the company will be able to get a clear idea of internal procedures. What software are used? How is the data backed up? And most importantly, how to make the whole much more harmonious?
If each employee processes the information in the same way, the overall performance of the company is increased. Why do you think all of the companies listed in the example have driving guides?
And that’s not all… In addition to standardizing internal processes, accounting audits, when conducted on a regular basis, keep in line with current standards.
There are so many reasons to conduct a legal audit, why do you deprive it? Accountants aspire to nothing but to help you.
Successfully complete your future operation
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