Conducting an audit for your business can be quite overwhelming. The good news is that the self-assessment audit procedure need not be scary. It’s a great practice that will keep your business finances in order. If you run a small business or lead a larger company, simplifying the process will save you much precious time and reduce some headaches. Read on for how you can achieve this.
Why Do You Need an Audit?
First, know why it is necessary to perform an audit. A self-assessment audit enables you to look back at your finances, trace any errors, and make corrections before an external audit. It’s just like giving your financial records a check-up. By doing this routinely, you are avoiding surprise issues when an external audit is performed.
Get Your Documents in Order
Be prepared: gather all basic documents such as invoices, receipts, and bank statements. Keep them organized to save your time. You can keep digital copies in cloud storage or any accounting software for easy access whenever required.
Use Accounting Software to Simplify Things
Accounting software simplifies the audit process. QuickBooks or Xero does everything for you in terms of tracking. Once this is done, it’s much easier to generate reports and look for discrepancies. Many of these programs also have features that will enable you to audit your finances in preparation for when you hire a professional auditor.
Regularly Reconcile Your Bank Statements
Third, reconcile all bank statements. This is essentially matching all your books against bank statements for the correctness of recorded financial transactions. Regular reconciliation saves a lot of your time when audits come and keeps your books pretty accurate.
Create a Simple Internal Checklist
Make a checklist to ensure that you do not miss anything. Put on it a review of income statements, tax return verifications, and inventory checks, among other things. Having this list will keep you on track and make sure that everything is not missed in the process.
Look for Areas to Improve
Self-assessment audit process aren’t just about numbers; they help you find the gray areas where your business can improve. Is there a possibility to reduce expenses? Are there some tax benefits that you’re not taking advantage of? Take the insight that you get from your audit and make informed, smart financial decisions for the future.
Don't Hesitate to Consult a Professional
While the Self-assessment audit process is something that you can handle yourself, that’s okay; seek a helping hand. A professional auditor will be able to advise, highlight errors, and assure you that everything is right, and you will feel comfortable in such a case before an external audit.