Audits can be a dreadful, long and daunting task that can precipitate a lot of stress. Despite this common conception, financial auditing is an unfortunate necessity to establish your company or business as reliable to outside influences such as government agencies, shareholders, and other external forces. Unfortunately, if you are a listed and legitimate company, this long and draining process can happen to you. Bennett CPA strives to make all legal processes go as smoothly as possible for every single one of our clients. We want to help you with your financial audit as efficiently and professionally as possible so that you can stay on top of everything and avoid a stressful situation. We recognize that the auditing procedure can be extremely long-winded and complicated which is why we have curated some of the most valuable tips when navigating towards a successful end-of-year financial audit.
1. Develop A Plan
Oftentimes audits can cause extraneous amounts of anxiety and stress. A major reason behind this is the failure to plan adequately for the audit. To ensure that the process is less stressful, keep your finances as well as reconciliations up-to-date throughout the entirety of the year. Additionally, it’s also highly recommended that one active member from your finance team is entrusted solely to continue communication efforts with auditors throughout the year as opposed to putting it aside until the very last minute.
2. Learn From Past Mistakes
Mistakes are a great learning tool and looking at past audits to realize your mistake can be instrumental in the success of your next audit. If you have been audited before, refer back to all of your past audits and the struggles that ensued with them. Knowing this will allow you to make the necessary adjustments to make the process go as smoothly as possible and anticipate any potential problems. The three most important pieces of information you should take special care to analyze are issues with past audits, internal control recommendations, and adjustments made to the previous audits.
3. Stay Up-To-Date and Study
Staying educated and informed on the latest tax procedures and regulations is essential when conducting a successful audit. If there is a breach of legislative requirements it could prompt serious complications and consequences. New tax laws and accounting standards and regulations may necessitate different organization and documentation efforts than were previously required. It could even require specific training or designated software. Likewise, you must also make sure that the financial regulations and standards apply to your business's activities. For instance, a new grant approval or internal control system may require different reporting and accounting considerations that have to be communicated to the auditor beforehand.
4. Stay Organized
One of the most important steps to a successful audit is organizing and analyzing past tax records and data. It is critical to refer back to past tax receipts from the IRS to ensure you are completely aware of the most recent deductions that were claimed as well as any adjustments that may be required. Keeping the data organized is also equally as important. One great way to achieve an exemplary organized system is to classify the data into groups such as cash, fixed assets, revenues, debts, and more. Additionally, you will want to make sure that all the sensitive information is stored in a safe place that is password protected and in an appropriate location.
Claim Success Today With Bennett CPA
At Bennett CPA, your peace of mind is important to us. We want you to breeze through legal requirements such as an audit as smoothly and painlessly as possible. We utilize our expertise with legal processes to ensure that you accomplish a successful audit. Financial audits are part of owning and running a legal and upstanding company but are capable of producing worry, anxiety, and pressure. It is our goal to ensure that each of our clients fully understands the importance of audits and how to successfully generate one with as little stress or worry as possible. For more information regarding financial audits or end-of-year reporting please contact us today!