Types of Small Business Audits
An IRS audit might be the type that business owners are most familiar with, but it’s not the only type of audit.You should be familiar with three main types of business audits:
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What is a business audit?
The results are reported in a written audit opinion, and the language in the opinion defines an audit.
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Business Audit Benefits
Most small business owners are intimidated at the thought of an audit, but an audit can actually help your business to be more productive and plan better for the future.
Send a signal to investors and lenders
If you’re looking to raise capital for your business, having audited financial statements can boost confidence of investors and lenders in your company.
Root out productivity killers
Doing an audit can help you spot fraud, employee theft, and operating inefficiencies. In turn, that can help you to achieve profitability or increase your profit margin.
Make tax time easier
If you’ve self-audited your financial statements, filing small business taxes at year end will be a breeze. You also make things easier for your accountant, and save on the money that you have to pay them.
Certain business certifications, like ISO 9001 certification, require regular business audits. These certifications can increase business revenue and lower operating costs.