The Importance of Conducting Regular Audits of Your Business

Essentially, audits are a window into your business’s success. It provides evidence that your financial statements and, overall, internal functionality are optimal. Find out more about the importance of regular audits and how a certified public accountant of audits, compilations, & reviews at Werdann DeVito LLC can provide you with our best services.

Why should I conduct regular audits of my business?

As alluded to above, audits can provide clarity when it comes to the financial status of your business. In turn, these reports can be handed over to creditors, lenders, and owners to establish your credibility.

Even if your business is not trying to establish credibility, regular audits are still a good idea to help your business fix operating inefficiencies, improve overall productivity, and increase your profit margin. Other reasons why regular audits are beneficial are as follows:

  • They can help discover fraudulent activity occurring internally.
  • They can help obtain funding as your business grows inside.
  • They can help obtain certifications that can increase the bottom line of your company.
  • They can help improve tax compliance and planning.
  • They can help identify bad accounting practices.

At our firm, some of the auditing services that we can provide for your business are as follows:

  • Auditing your business’s tax records.
  • Assessment of internal controls.
  • Analysis of bookkeeping processes within your business.
  • Comparison to competitors.

When is an audit considered unnecessary?

Since audits are rather time-consuming and can often be expensive, they are not necessary for all situations. However, if you are still interested in gauging the status of your business, you may choose to opt for a compilation or a review instead.

Compilations vs. reviews. What is the difference?

A compilation is a simple presentation of financial statements and other information regarding your business, which can then be used to compare monthly and quarterly statements. The downside to a compilation is that they are not entirely thorough, and there is a possibility that the information is not entirely accurate.

On the other hand, a review is more thorough than a compilation. That is, a review will ensure that your business’s financial statements meet the terms set out by the Generally Accepted Accounting Principals. Although this is still a limited assurance, they generally do not require serious modifications.

If you are still questioning whether an audit, compilation, or review is in the best interest of your business, do not hesitate in reaching out to one of our knowledgeable certified public accountants today.

Contact our experienced New Jersey firm

Werdann DeVito LLC is an experienced Certified Public Accountant firm serving clients throughout New Jersey with all of their financial needs. If you need quality assistance with accounting, tax, or consulting services, contact Werdann DeVito LLC today.