Business owners know that there are always costs and expenses associated with compliance with bylaws, lenders, federal and state rules, and regulations. When you need an audit of your financial statements, it can be challenging to budget for audited financial statements cost— especially if your audit is time-consuming or your audit firm’s pricing structure is unclear.
In this post, we’ll review a few factors that affect the costs of audited financials and define the difference between competitive pricing structures and hourly pricing so you can find an audit firm that best fits your budget and meets your expectations.
Factors That Affect the Cost of Audited Financials
There are a few factors that affect the price of audited financials. For example, the size and complexity of your company will affect the expected cost of audited financial statements. This is because the larger your company, the more time your auditor will need to verify your financial statements and documents.
Here are a few other factors that might affect your overall cost:
-
- Poor internal controls: If your internal controls are weak, your accounting professional will need to spend more time sorting through and verifying transactions. The time they spend correcting errors and deficiencies can eat into your auditing budget.
- Industry requirements: The kind of audit you need depends on your industry. Some industries require specific audit procedures and reporting standards, which can be more time-consuming than other industries.
- Previous audits: If you have never had an audit of your business or if your previous audits uncovered deficiencies in your internal controls or financial statements, your auditor may be required to conduct other procedures to ensure compliance with rules and regulations. This will add to the time necessary to complete your audit.
- Financial statement preparation: If possible, prepare your financial statements before your audit. Otherwise, you risk raising the costs.
- Experience and expertise: Like other industry professionals, an audit firm’s experience and knowledge can play into the overall costs of your audited financials. However, don’t let this scare you— you want to work with an expert in auditor services who understands your industry.
Competitive Pricing vs. Hourly Pricing: What’s the Difference?
Many audit firms charge their clients by the hour. This pricing structure requires an auditor to track the hours they spend sorting through and auditing your financial statements. While hourly pricing works for some companies, it can quickly get expensive, especially for complex companies or companies that require specialized auditing.
At Assurance Dimensions, we offer a competitive pricing model designed to provide clear expectations around audit costs. This approach lets you plan confidently, knowing our team will provide transparent pricing and keep you informed every step of the way.
Why Choose Assurance Dimensions?
We have over 75 years of industry experience at Assurance Dimensions, so you can trust our expertise in guiding you through the audit process. We also offer a competitive pricing structure so you can better estimate the time and cost of audited financial statements.
What’s more, our remote audit capabilities make it convenient to conduct your audits. With our secure cloud-based technology, you can rest assured that your financial documents are safe and in capable, experienced hands. Contact us today to learn more about our private company audits.