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.
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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.
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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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