TOP 5 Benefits of Annual Audit
Audit is one of the important aspects of a successful business growth strategy without any hurdles. It helps identify errors and fraud, both of which are crucial to the smooth running of your business.
While all organizations are not required to audit, it is always a good precaution. Here are the 5 main advantages of audit.
Prevent Errors and Fraud
In many cases, the owner of the business and its management are separate. So to detect and prevent frauds, auditing becomes essential. The main duty of the auditor is to detect errors and frauds, thus helping prevent such errors and frauds and taking the necessary steps to avoid such frauds.
This is the reason why all organizations make audit of all the books of accounts, even though it is not necessary.
Assess Financial Position
The goal of a business is to make profits, and audit statements clearly explain the details of assets and liabilities owned by the company as on date. Moreover, it gives a clearer picture of the financial performance which is important for business growth strategy.
This is a subjective measure of how well a firm can use assets from its primary mode of business and generate revenues. It can also be used as a general measure of a firm’s overall financial health over a given period of time. This can be used to compare with similar firms across the same industry or to compare industries or sectors.
Determine Share Value
Audit reports give a clear picture of the company’s position, which is crucial information for the shareholders. It gives exact information to new investors who wish to buy shares of that company.
Every investor wishes to invest in profitable business and one that does not engage in fraudulent practices. So an audit report can greatly help the companies to sell their shares on a trusted rate. This makes the shares of the company valuable and worth investing in for potential shareholders.
Sale of Business
After certain period, it is likely that some business owners would wish to sell their business, either partially or fully. So by providing audit report, the owners are in a position to negotiate with the buyer for a fair price which can be accepted for both parties.
Obtain Bank Facilities
In the present era of globalization, every business needs bank facilities to run their business in a better way. Financial institutions provide these facilities based on the audited statements. Banking facilities are also important during business setup in Dubai. A business organization may obtain facilities, considering the audited statement of last two years. So an organization should make audit compulsory to obtain bank facilities.
At My Business Consulting DMCC, we provide accounts and bookkeeping services to our clients who want to ensure that their business is free from fraud and able to capitalize on opportunities. Contact us today for free consultation on +971 55 147 9576 or email: [email protected]