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To understand how a company that is audit ready will capture more market share, we must first understand the basics.  What is market share?  What is an audit and who performs them?  And, how do I ensure that my company is audit ready?  Let’s take a look below.  

MARKET SHARE: Out of the total purchases made by customers for the same product or service in a market (in a country or in a global market internationally), the percentage of purchase that goes to a company is its ‘Market Share’.

AUDIT: An audit is the examination and inspection of bookkeeping and accounts by an auditor and compared with the physical verification of the stock/inventory.

Auditing is done by auditors. An audit can be done internally or by external auditors to inspect all of the accounting information and bookkeeping in a company.

Internal Audit is done by the employees of a company or by the head of a particular department in a company.

External Audit is done by an external auditing company or by a team of external auditors. All government and private registered firms are bound to get an external audit performed annually. An external audit is done by an independent company. An external audit is according to laws and rules, financial statements, balance sheets, and cash flow statements of a company. The external auditor prepares an audit report after the completion of the auditing process. Audit report information can be used by the investors, government agencies, and by the public. An external auditing company must be a registered and recognized qualified accountancy firm. The information provided by such an accountancy firm as an audit report gives a reliable and unbiased information to its users.

To keep an audit ready business, the business must use specific software for managing the accounting and other information of the company. There should be a system of well-established checks and balances in the accounting software used in the business bookkeeping and accounting.

The accounting software must be able to:

1. Adjust and automate day-to-day accounting jobs and financial endings 

2.  Eradicate the danger of manual worksheet mistakes 

3.  Reduce the time required for an auditor to recheck your calculations 

4.  Provide all required data to an auditor, but does not allow an editing or deleting option to any auditor.

 Benefits of Audit in a Business

  • It is better to keep a check and balance in business by carrying out a regular audit.  Especially when a company has employees, various offices, many technical works, and where a single person cannot run all the business operations.  These are all factors that provide chances of errors in business operations.
  • Weakness in the accounting and financial systems can be made clear after audits. Improvements can be suggested after an audit report.
  • By performing audits, business owners do not have to check or get involved in accounting functions daily. Audits provide a way for business owners to check that accounting functions are running properly per what they are being told. Frauds are minimized.
  • An audit report gives valuable information by which critical decisions can be made such as where internal controls need to be tightened, tax planning, or reducing the dangers of fraudulent practices.
  • An audit increases the trustworthiness and dependability of a business. Information is available to its users.
  • A company that is always audit ready attracts more investors and customers.
  • The overall rating of a business is increased after regular audits.
  • Banks, suppliers, and such users prefer companies in which audits are being performed on a regular basis.
  • If the company has insurance, the audited accounts are given more faith.
  • If there are shareholders in a company, audits give a guarantee to shareholders that the business is running a fair and true picture being drawn to them.
  • When purchasing from different companies, the companies with regular audits carry more weight. Bulk purchasers have a greater trust in audit ready companies.
  • An audit ready business provides a true financial status of a company that is very important for foreign entrepreneurs, banks, and investors.

Conclusion

Audit ready companies always have up to date accounting data. This account information is always available to its users and auditors. Regular audits ensure clear and transparent accounting information. Wise and confident future decisions can be made easier with regular audits. An audit ready business equates to a business ready to get its market share due to the trust of investors, customers, and legal authorities in that business.

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About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

audit ready - Complete Controller

What does it mean for a business to be “Audit-Ready”?

 

  • Financial reports and other reports are prepared
  • Files for audit work papers are prepared
  • Models for unit pricing are developed and reviewed
  • Establishment of a process for risk management and already conducting a risk assessment
  • Issues of accounting, audit, and taxation strategies are prepared
  • Provision of values for financial reports
  • Provision of technical opinions for new standards and changes in accounting and financial reporting Check out America's Best Bookkeepers

Audit-Ready Bookkeeping Defined:

Being ready for an audit requires skills and knowledge. A mixture of tax laws, accounting values, understanding of requirements for CRA audit, and an understanding of the best categorization for an expense is required for bookkeeping to be ready to be audited.

 

Why is it Necessary to Have Audit-Ready Bookkeeping? 

GAAP (Generally Accepted Accounting Principle) is followed in a conventional system of accounting. The major drawback of this system is that it is not audit-ready. Businesses are placed into an end turn at audit time. CRA has an engraved and dehydrated audit process. Accounting should be done in a suitable mode, which is audit-ready. We have acknowledged that limits of bookkeeping software and simply the training of accountants is not how to have the books ready for an audit. Check out America's Best Bookkeepers

 

The most sensible method of bookkeeping is to make it ready for audit.  When bookkeeping reflects the exact figure of the tax return, which is under stable, justified by an auditor and owner, it shows that each step is transparent. A company that is not afraid of audit, because they are always ready for one, is known to be an honest and transparent organization. If records are well maintained and organized, then bookkeeping is more straightforward and is ready for an audit, tax time, and to provide feedback information to its owner.

Steps in Auditing


Categorization of expenses:

The key step in audit-ready bookkeeping is the categorization of expenses.

  • Direct expenses
  • Capital expenses which have lasting benefits


Organized documentations:

All source documents, slips, deposits, invoices, and records are well organized. Documents of all business dealings and transactions are gathered. This data justifies an auditor. All kinds of business events affect a business financially. A bookkeeper knows the relevant information and its financial effect on business transactions. A business is either worse off or better off as the result of its dealings. The bookkeeping procedures identify the financial and business aspect of the relevant information regarding each transaction.

 

Tracking number: Check out America's Best Bookkeepers

A tracking or item number is assigned to all financial transactions. This number is critical for an audit as it is used to trace the trail of all transactions.

 

Financial statements:

Business statements should justify expenses. At times, all expenses are not justifiable.  A few can be inappropriate and not appropriately allocated. These expenses result in loss and huge costs for the business. Auditors make assumptions about expenses and critically evaluate them. All of these steps are critical in maintaining up to date records, preparation, and management of accounting reports, government audits, tax returns, and audit-ready bookkeeping—poor bookkeeping results in loss of money for the business and its owners.

 

An audit-ready business:

  • Enhances the compliance of the business with internal revenue service regulations.
  • Enhances the credibility of the company on the public, investors, and other stockholders.
  • Prevents fraudulent cases and business losses by detecting discrepancies in early
  • Improves accounting processes and internal controls.
  • All the above advantages guarantee high-level investments to audit-ready businesses because it declares that it is transparent and safe for investment.
  • Investors know that they will not face losses or fraud in an audit-ready business.

 

Conclusion:

An audit-ready business attracts investors to make high-level investments because of the guaranteed profits and the minimized chance of loss and risk to their money.

Check out America's Best Bookkeepers About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity. Check out America's Best Bookkeepers
external audit - Complete Controller

An external examiner conducts an external audit. These auditors are accountants that work independently for a firm, company, or organization to examine operations and records. They check the accuracy of financial statements and compliance with procedures and protocols. They have a large role in creating the integrity of entrepreneurship and large businesses over the public.

The external auditor is key to winning public confidence because of the following reasons: Check out America's Best Bookkeepers

An external auditor ensures compliance

The external auditor verifies the compliance of businesses with all applicable laws, rules, and regulations of the internal revenue services. An external auditor is not your company’s employee, so that they can provide honest statements without any fear. They redirect behaviors of the company, point out tiny problems and issues before they are converted into serious and major blunders and gaps.  By grasping issues early on, the efficiency of businesses can be increased. They help in keeping the business on track.

Growths of your business make you credible and exemplary for the public.

An external auditor ensures credibility

External auditors are more credible and provide a more transparent report of financial statements of the company as compared to an internal auditor because they are not biased. External auditors’ validation and approval of financial statements deliver the credibility of entrepreneurship in the market.

They don’t work in the company directly, so evaluation of financial statements by them matters.

They also evaluate the accuracy of bookkeeping.  For public organizations, external auditors provide an unbiased glimpse of the accounting practices of organizations. For entrepreneurship, family, and small businesses, external auditors give stockholders ground for proper assessment of the financial health of organizations. Check out America's Best Bookkeepers

External auditors criticize the internal procedures of the company

Internal auditors, being an employee of the company, cannot criticize the internal procedures of the company effectively. External auditors do this openly and painlessly. They are observing the company from the outside to provide a transparent analysis of procedures, gaps, and flaws in the company. They pinpoint where money and time of the company can be saved and where the company needs to change its behavior to grow.

They also recognize loose holes in accounting procedures and general operations of the company.

They recommend how general operations could be made more effective and efficient, as well as how accounting procedures could be tightened.

By implementation of external auditors’ recommendations, the trust of the public can be gained.

Double-check for internal auditors

External auditors can double-check with internal auditors so they can identify shortcomings in their work and train them, as well.

Prevention of fraud

External auditors scrutinize bookkeeping records of the company without any biased judgments and personal favors. They can detect any suspected fraudulent cases by this impartial inspection.  Financial statements are unvarnished truth for external auditors and prevent the business from significant losses. Check out America's Best Bookkeepers

Improvement of procedures

External auditors provide recommendations to improve internal controls and automate processes to make them more streamlined.

The task of the audit is presently under sensitive inspection. The exceptional universal monetary upheaval of the last two years has seen commentators questioning the value of an audit at the large public company level. In a separate agenda, some jurisdictions have sought to minimize audits and other reporting requirements for large numbers of small businesses via the inexorable raising of the audit exemption threshold. In doing so, they have equated the submission of the company to statutory audit to ‘red tape,’ portraying the audit a burden on the performance of small businesses from which those businesses need to be freed.

An external audit can:

  • Help in providing an honest and constructive assessment of the performance of the company, how the company is doing, and what should be done for improvement.
  • Give insights into internal controls, governance, process, and improvement of business in a broader range.

Conclusion

External auditors assess bookkeeping practices and validation of financial status. Abuse, fraud, and violations are detected in the early stages. By improving practices, you can win public confidence.

 

Check out America's Best Bookkeepers About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity. Check out America's Best Bookkeepers
boost with external audit - Complete Controller

Accounting refers to the managing of transactions by reporting them, recording them, and then critically analyzing them. External auditing refers to evaluating a company’s financial records and accounting by auditors outside the company; boosting means the improvement of a business. In contrast, the corporate image of a business refers to the systematic working of a business. The three terminologies refer to the benefits of external auditing from the perspective of making the business a successful one.  Bookkeeping is the concept of keeping records of all transactions which have taken place in an organization.  It helps in accomplishing all tasks and operations of a business, such as budgeting, auditing, etc. Following are certain ways through which external auditing can cause an appraisal to the corporate image of a business: Check out America's Best Bookkeepers

  • Proves the Credibility of a Business

As external auditing refers to the reviewing of overall performances of a company, it reflects the authenticity of all work done in an office for the smooth working of a business corporation. Many business establishments do not prepare detailed reports for all transactions taken place in their organizations.  In the future, this has long-term adverse effects, for they lack in-depth records for future usage. External auditing is a task of complete authenticity performed by accounting experts who tend to make a critical analysis of a business in terms of all pros and cons which have already taken place to help out the future working of an office.  Therefore, it helps in proving the credibility of a business. The credibility of a business refers to the trustworthiness of its operations, which are verified through external auditing. Such publications that appear can have an optimistic impact if an organization and establishment has striven hard to achieve its goals.

 

  • Entrepreneurs get to Know All Check out America's Best Bookkeepers

Entrepreneurs are known to be the individuals who design, plan, and then implement a new idea into the market. They strive hard to run a business efficiently but, even for them, it is necessary to know all regarding their business. It is the fundamental requirement to carry out effective operations of a business in the future.  External auditing report tends to view all weaknesses and strengths of an establishment in terms of business transactions.  Business owners can then utilize this to avoid future crises as well as to create sustenance in operations, which tend to produce maximum returns at minimum cost. However, external auditing plays a role of substantial importance in terms of portraying all activities taken place in an organization within a particular period of time in front of entrepreneurs. Check out America's Best Bookkeepers

 

  • Tax Concerns are Observed

Declaring of false assets and earnings is considered an illegal act that can affect the running of an establishment in pessimistic terms.  All organizations should avoid it. Appropriate declaring of assets is done through technically designed reports which are made by going through the whole procedure of external auditing.  This is how it also helps out in boosting the corporate image of a business.

Final Note

External auditing is the art of reviewing all activities which have already taken place in an organization. It is an act of genuine value owing to a significant impact, which ultimately boosts the corporate image of a business. This type of auditing is a strong tool a company can use to show it has integrity and can be trusted by customers both current and future.

Check out America's Best Bookkeepers About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity. Check out America's Best Bookkeepers