As a private company, maintaining accurate financial statements is essential to your business’s success. These key steps include maintaining your audited accounts and scheduling an independent financial statement audit.
Let’s take a closer look at the core components of audited accounts and explore some key reasons why a private company might benefit from conducting an audit.
The Main Components of Audited Accounts
Your audited accounts are your company’s financial statements. Your financial statements include reports like your:
- Balance sheet
- Income statement
- Cash flow statement
These documents help paint an accurate picture of your company’s overall financial condition. It’s important to keep these documents up-to-date, as inaccuracies can lead to costly mistakes in the future.
Depending on your business ventures, you’ll need a third-party accountant or auditor to verify and audit your financial statements. An auditing professional will double-check to ensure your internal controls are in place and your documents are accurate and complete. If, for some reason, your financial statements are inaccurate, your auditing team will be able to highlight those errors so you and your internal accounting team can fix them.
Why Your Private Company Might Need an Audit
There are several reasons why your private company might need an audit. If you’re applying for a bank loan or outside funding, your lending institution may want to examine your audited accounts. Having your financial statements audited helps assure your lenders that the numbers are correct before granting your company a loan.
Similarly, investors and stakeholders will want to know where their money is going and if it is being wisely spent to support your business. A financial statement audit can help verify your cash flows and returns on your investments.
Another reason your private company might need an audit is if you’re preparing to merge or sell it. An audit helps potential buyers get a complete picture of your business and its position within the market, which can lead to better decision-making for both you and your buyers.
Finally, depending on your business, you might need an audit to comply with regulatory requirements. If this is the case, you’ll need to regularly check your audited accounts to ensure your company stays in good standing with current rules and regulations.
Ensure Your Audited Accounts are Accurate with Assurance Dimensions
It’s a good idea to monitor and maintain the documents in your audited financials. Keeping an accurate and up-to-date record of your financial statements will make preparing for an audit easier.
At Assurance Dimensions, we specialize in private company audits, drawing on over 75 years of industry experience to deliver high-quality service. Plus, our secure cloud-based software makes sharing files easy, meaning you never have to leave your office to complete your audit. Contact us today to learn more about our assurance and audit services.