Saturday, December 29, 2018
Thursday, December 20, 2018
The end of
the year is fast approaching. As a small business, this is the time to:
a) Take stock of 2018.
.
How can you
take stock of 2018?
Ø Examine your financial activities for 2018: You may have
decent skill and knowledge in the areas of accounts, or have people in your
small company/business operations who do a good job of taking care of the
accounting transactions for you BUT it is important for you to engage an
Independent person who will examine and check ALL your financial activities for
2018.
The Independent person will
inspect documents, receipts, cashbook, bank statement and invoices. He can
uncover certain things about your company that you might not have known. In
fact, business owners are sometimes surprised by the outcome of the audit, and
this process helps them see that they might have overlooked certain financial
situations that were occurring in their company.
Ø Identify poor accounting practices: You
may record the transaction wrongly or your employee who are getting lazy about
performing the correct financial records. It is hard to see these issues unless
you can view the overall picture, which is possible with an audit. Get an
Auditor to overhaul your operations so as to understand the true position of
your business operation/company in 2018.
Ø How much profit did you make in
2018? Most small business owners do not understand the bottom
line of their business. Ask them questions like, what is your turnover in 2018?
What is your Cost of sales in 2018? What is your profit in 2018? What is the
worth of your business or company in case you want to sell in 2018? The Independent
person will help to provide answers to all these questions.
Ø Uncover fraud: Some of the employees may
be committing fraud without your knowledge. This is very possible with small
scale operations. An auditor will identify discrepancies, fraud committed so
that you can eliminate the problem.
Ø Using External Auditors Improves Your Credibility
You are probably doing all you can to
ensure your business is well organised, but you can’t expect anyone to take
your word. Imagine if your business suppliers and customers knows that you
audit your accounts every year, the credibility and the trust accorded to you
and your business will soar.
As you might expect, this does a lot
for the credibility of the company, particularly in the eyes of potential
investors and partners. By bringing in an auditor, you are showing your
business network that you aren’t afraid of scrutiny and that you value
financial and regulatory compliance.
Ø Business Improvements will reduce your
cost: The auditor advice and recommendations on your business and how financial
activities should be carried out effectively will help to reduce cost, thereby
saving cash flow needed for your operations.
.
Ø Clear Understanding of your
business in 2018: One of the biggest benefits of an audit
is that you can get a clear understanding of the financial situation of your
company. By identifying cash flow, Sales, cost, and other financial
information, you will have all of the information and details that you need to
ensure that you are making the best financial decisions. You cannot get a
precise snapshot of everything that is occurring within your business until you
employ an auditor.
Hiring an auditor used to be
something only big companies need to Are you still
not convinced? Talk to us.
Call 08038520767 or mail us at admin@baasinat.com
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