Even if you trust your accountant unquestioningly, there are tonnes of things that may be beyond his or her understanding and knowledge. In order to resolve such financial issues and keep your books clean, you need services of a professional auditor. Here is how a professional auditor can help your company:
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They provide structured auditing
An accountant is good to keep track of salaries, account payables and account receivables, but you can't expect them to know everything about everything when it comes to corporate finance. There are many generally accepted accounting principles, and to use them at the right time in the right place to avoid any potential taxation or other business related issues, you need a professional auditor. Structured auditing is the need for the hour, and a professional auditor is the right person to do it.
They prepare you for doomsday
Whenever an external auditing team visits your office, your books are investigated, accounts are inspected, revenue streams are monitored, and past business moves are questioned. It's like doomsday for business owners, when everything they have built so far can be ruined by a team of few unknown people, and they can't do anything to stop it. Having a professional auditor can come in handy at such times as they are well aware of all the government compliances and can make necessary arrangements well in advance to ensure your firm adheres to them.
They prove your credibility
If you're a business owner and manage multiple companies, keeping track of all the financial transactions taking place simultaneously is almost impossible. Should there be any fishy deal at any level in your organisation, chances of you getting external funding from banks, the stock market or private investors are very less. All the creditors check whether you're credible enough to be trusted or not, and the moment they come across any such transaction, they'll reject your application right away. A professional auditor knows how to keep the books of accounts clean to ensure you don't have to face any such situation.
They can detect fraud
It's your organisation – your brainchild, and not everyone may have the same vision as you. This gives rise to the possibilities of a minor or major fraud at multiple levels. More often than not, fraudulent activities are conducted by those who have insider access to key accounts, which makes it a little bit difficult for a regular accountant to stop them. On the other hand, a professional auditor who has dealt with such issues in the past can track such activities and inform you about them.
They help you run business smoothly
As a business owner, you know how to run your company better than anybody else. But an auditor knows how to keep the books of accounts clean and well-maintained. Chances are that not all of his recommendations may have an immediate impact on your business, but in the long haul, they will help you run it smoothly.
Other than this, auditors can assist you with anything and everything related to business expansion, mergers, acquisitions, buyouts or anything else that involves money. Hiring a professional auditor may cost you a few extra bucks, but the benefits that you'll harvest in the long run will nullify this cost.
What do you think about hiring a professional auditor for your firm? Do let us know in the comments section below.