Auditing: Small to mid-sized businesses need audits for many reasons. For example...
- One of the top reasons small businesses conduct financial audits is to obtain or renew a loan. Some lenders require an audit to determine eligibility for bank loans, lines of credit, and other types of loans. Even if it’s not required, a financial audit might make obtaining a loan easier and help lower interest rates.
Applying for grants
- Foundations that give grants to nonprofits typically, depending on the size of the grant, require audited financial reports. Even if not required by the donor, nonprofits because they are subject to high degree of scrutiny, should perform an annual audit.
Companies seeking to get or renew federal/state contracts
- companies doing business with government agencies typically need audits to comply with the terms of their contracts.
Selling your business
- Performing an audit gives the seller a reliable basis on which to base their valuation. Also, it gives the buyer more confidence in making the purchase, which in turn makes the sale easier to make for the selle
Management – a best practice for management
- In addition to the financial / accounting aspects to a financial audit, financial audits include an in-depth study of the internal controls and management practices. This study is an invaluable source for management to provide information on improving the organizations financial operations.
To get bonding
- The purpose of an audit is to make sure that the facts the business provides to the bonding company are accurate so that the bonding company can evaluate risk and charge the customer an appropriate rate.