Every year businesses have to engage an Auditor to prepare their annual financial statements for filing with Revenue and the Companies Registration Office. Typically speaking by the time, the Audit is conducted and completed the accounts maybe anything from 3 to 9 months old. Auditors will usually make comments and recommendation to their Clients on these now historical figures and the process is completed for another year.
For businesses that prepare monthly or quarterly management accounts the annual audit usually confirms the trading performance and usually there would not be too many surprises or changes to the reported figures. For some businesses the annual audit is the only time they actually find out how they performed in their trading year and often by the time they find out they are already six months or further into the current year.
From my experience in business restructuring and in debt resolution for clients who lost their business, the damage that required their business to be restructured or caused it to fail was not necessarily a sudden event but a gradual decline or change that was not identified due to lack of regular management accounts. By the time they identified the problem it was either to late and the business failed or else if the business had the resources, it required complex restructuring to stabilise its trading and finances to allow it to trade.
While the preparation of the annual accounts and audit is often seen as a chore, businesses can be proactive and engage a Profitability Audit. This is an audit that from my experience will make and save you money and will often secure the businesses future and allow it thrive and prosper. The cost of the audit will be repaid in multiples of increased profits that the business will enjoy on an ongoing basis.
So, you have and pay for your annual audit because you have to. We are all in business to make money so why don’t you take a proactive approach and engage a Profitability Audit which from my experience will transform and protect your business because you want to! While you don’t have to conduct a Profitability Audit, why wouldn’t you?
At Tom Murray and Associates we are specialist business profitability consultants so call me today and we can discuss how we can help you and your business to thrive.