The Benefits of Audited Financial Statements

In accounting, accuracy is crucial. Incorrect or improperly reported numbers can lead to all kinds of problems, from misguided strategic planning to cash flow issues, which could even leave you unable to pay employees. But how can you be positive your numbers are accurate?

The answer is an audit. A thorough examination of everything from specific transaction testing to financial statement report presentation, an audit performed by a Charted Accountant can be the assurance your company needs to proceed with confidence. Here’s what you can gain from audited financials.

Improved Management Decisions

In accounting, accuracy is crucial. Incorrect or improperly reported numbers can lead to all kinds of problems, from misguided strategic planning to cash flow issues, which could even leave you unable to pay employees. But how can you be positive your numbers are accurate?

The answer is an audit. A thorough examination of everything from specific transaction testing to financial statement report presentation, an audit performed by a Charted Accountant can be the assurance your company needs to proceed with confidence. Here’s what you can gain from audited financials.

Investor Confidence

Many companies rely heavily on investors to fund their businesses, from traditional stockholders to angel investors. However, most savvy investors won’t move forward without audited financial statements.

Providing audited results to investors can increase your odds of receiving crucial investments, helping your business to avoid cash flow issues, and better plan for the future. Audited financials can also result in better investment terms, possibly even larger consideration in exchange for reduced royalties or equity.

Better Lending Terms

For some businesses, especially those seeking acquisitions or planning large capital expenses, third-party loans are essential. Banks and other lenders generally limit activity to only proven companies with solid business models, restricting access to those without trustworthy reporting.

An audit can provide the verifiable records banks and other lenders like to see, increasing your odds of receiving a loan – and better terms and interest rates.

Employee Confidence

Employee attitudes can play a sizable role in company morale and, consequently, quality of work. When employees are left
in the dark or offered inaccurate information, they are far less likely to trust you, be loyal to you, or put in extra effort on your behalf.

Providing access to audited financial statements can build confidence in your legitimacy as an employer. This demonstrates your commitment to your team members, and could ultimately boost job satisfaction and performance in a way that can yield tangible benefits for your business.

Customer Loyalty

Customers often spend significant time making purchase decisions, researching online, reading testimonials, and reviewing background information on company operations. Influential information can range from financial records to charitable donations; though ultimately every piece of data you make available can influence potential customers.

When you release audited financial records, consumers are far more likely to have confidence in your capabilities, building loyalty and boosting customer retention.