Monday, December 14, 2015

All About Auditors

In many situations, independent tax auditors can be an indispensable asset to a small business. However, not all businesses need them, and, for these businesses, they can be an unnecessary expense. As such, it’s important to know how to tell whether or not you need an auditor, and, if so, how to hire the right one   

Assess Your Need

You may need an auditor to assist you if you are struggling with and/or don’t understand some or all of the following:

l  Your general business, financial, and operations structures
l  Accounts Receivable management and confirmation
l  Analysis of account balances variances
l  Tracking and managing physical inventory

An auditor can do all of these things for you, helping you to save time and money. You could even hire an auditor temporarily to teach you how to do these things yourself. The bottom line, though, is that if you can’t do these things yourself, you need to get some help quickly!

Selecting the Right Auditor

If you are in need of an auditor, it’s very important that you choose the right one to meet your needs. Try and only hire auditors who are listed on the International Register of Certified Auditors. These auditors are some of the most qualified in the business and definitely know their stuff.

It’s also wise to choose an auditor who has experience in your specific industry since not all businesses and business structures are the same. Friends who work within your industry can often serve as a wonderful resource for finding these types of auditors.

Working with Your Auditor

Once you’ve hired the right auditor, it’s time to get to work! There are some things you’ll need to prepare and have ready for your auditor so that he or she can do the most effective job possible. These include:

l  Fully correct financial statements as requested
l  Requested records and documentation
l  Contact information for any people the auditor wishes to contact

Providing the most correct and accurate information promptly will make your auditor’s work a lot more reliable and thus a lot more helpful to you, so be thorough.

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