Running a business presents a certain level of risk. Just a couple of the things businesses need to protect themselves against include cyber-security threats and fraud. When you’re struggling to keep on top of just the day-to-day running of a company, it’s difficult to focus on potential threats too. That’s why the majority of successful businesses these days, hire in the professionals.
Auditors are considered a vital investment for those looking to ensure they are complying with the law and their financial books are accurate. But why hire a professional auditor rather than do one internally? Below you’ll discover why businesses often choose to get auditors in, rather than doing them themselves.
What does a professional auditor bring to a company?
There are a surprising number of benefits that come from using a professional, external auditor. While it may be costlier than carrying one out yourself, in the long-term it can actually save you a lot of money.
First and foremost, a professional auditor can help identify any errors in your books. When you’re busy running a business, it’s easy to make mistakes. What’s more, you may not have the time to go over the books to look for potential errors. Mistakes don’t just have potential legal repercussions – they can also help you identify potential fraud within the company and give you a much more accurate idea of how the business is doing.
You’ll also be considered a lot more trustworthy too. This is because hiring an auditor shows you have nothing to hide and it also highlights transparency. This is something that’s become really important for businesses today. When a business showcases its earnings over a period of time or fiscal year, it becomes important to maintain honesty in the statements. Avoiding earnings manipulation (https://kailashconcepts.com/identifying-accounting-and-earnings-manipulators-2/) and other such practices is of utmost importance for businesses who wish to gain the trust of investors and shareholders. Trust is everything, so by hiring an external auditor, you’ll inevitably be showing that your business is responsible and transparent.
Another benefit is the fact that having a professional audit done gives your books a lot more credibility. This is important if you plan on asking for finance or if you’re looking for an investor. As the auditor has no real interest in your business, they’re not biased and will therefore provide a more trustworthy report. So, an investor will look much more favourably on books which have been audited by a professional company such as RSM International Limited, than they would with an internal audit.
Providing training opportunities
Some auditing companies also provide internal training. Businesses hire them to double check an internal audit and train its employees. This can save your business a lot of money in the long-term, giving you peace of mind your internal team know exactly what they’re doing.
Of course, an internal audit will still hold less weight than an external one in terms of investment. However, if you’re simply looking to ensure you’re complying with the law and you want reassurance mistakes will be avoided, having a professional auditor train your staff is a good idea.
Overall, there are many reasons why businesses hire an auditor and the above are just some of them. Boosting credibility, protecting you from fraud and ensuring you don’t run into legal difficulties all make an external audit a worthwhile investment.
