What Is A Small Business Audit?
A small business audit is a way to make a systematic evaluation of several different aspects of a business, so that the small business owner can anticipate potential issues and resolve them before they become problems. We focus on mitigating risk, improving the governance of the business, and promoting the growth and success of the business.
Why is An Audit So Important?
It’s much easier and much more efficient to avoid problems before they happen than it is to fix them after something has gone wrong. We want to try to be proactive in our management of the business, rather than simply reacting to problems as they arise.
What Sized Company Should Get An Audit?
An audit would benefit any company that has any employees or independent contractors. The only time a business wouldn’t benefit as much from one is if it is just a single person operating the business. Even then, it would be beneficial because it forces that businessperson to look beyond the day-to-day problems to the potential for growth, strategies, and the potential problems. Any size business would benefit from an audit.
How Often Should The Audit Be Repeated?
We recommend that some auditing is done at least annually. There are several categories of audits that can be done at a business. My recommendation is that we take one of those categories each year and audit that category of the business. That way, it’s not as cumbersome and it provides for a complete audit every four to five years.
How Long Will An Audit Take?
How long an audit will take will vary based on the size and complexity of the business and how organized the business is. One of the most time-consuming parts of the audit is just information gathering. Getting all the information necessary to identify any potential problems and take measures to avoid them can take time. Typically, a business owner can expect at least one to three months before the audit takes place, with them spending three to five hours per week on the audit.
How Much Time Will Management Spend Completing The Audit?
In the first phase of an audit, it will take three to five hours per week dedicated specifically to the audit, to do the information gathering and analyzing. The second part of the audit, where we address the issues, is what management is already doing anyway. Rather than it being a dedication of more time and more things to do, it really is just focusing their efforts on these specific issues. It shouldn’t take more time from management to complete the audit, once the initial information gathering phase is complete.
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