Managing your company’s finances is extremely important for any business. On many occasions, you need to verify your transactions, report on your growth and ensure your investors and shareholders that their investment is growing effectively. This is why a professional financial auditing service is so important.
An audit can be carried out both by the business internally or by an appointed company that professionally deals in financial audits. Not only is auditing a very beneficial process for your company, but it has also been made mandatory in most areas of business. Regular auditing is a sign that the company is compliant. It also sends out a very positive message to potential clients and customers of the company. The transaction records maintained by the company also show that the company maintains transparency in their financial transactions.
Financial auditing is completed at the end of each financial year. In the process, the financial records of the company are literally ransacked so that fairness is ensured in the transactions of the business of the company. An audit also checks the reasonability of a plethora of transactions by the company. If a particular company is not able to suffice the various conditions of the audit, it is asked to halt all business processes until all the records are cleared. If by the end of the budgetary review the company fails to meet the desired standards, it might have to face some serious penal charges, the worst of which could be the possible cancellation of the business permit of the company.
The result of the financial auditing is also distributed among the shareholders of the company. This is why it is so important to have audits done; shareholders want to know that their investment is safe and that you operate in accordance to the law so that they can see a significant return on their investment.
Colin Smith & Co is a professional company accountants that provides a variety of services to customers throughout South Africa. Their team of professionals can assist you with accurate tax planning, administrative services, and payroll assistance for business customers.