The word ‘audit’ tends to be interpreted in a number of ways. Some believe it signals a distrust, while all finance professions know it to be a routine provision that is required in the finance industry. If you are part of a finance function, then you have likely been involved in the preparation of an audit, and can appreciate the rigour that is needed to come out the other end with no items flagged. What you might not have undertaken is an audit of your own company’s bookkeeping. Let’s discuss the best way to do this, and what you should consider in the process.
Outsource the responsibility
As you might be thinking, this task might be best left in the hands of an outsourced professional. Our i3 Group has administered several successful bookkeeping audits, providing a seamless and compliant service in a timely manner. The benefit of an outsourced option is that you can get a non-bias judgement about what can be improved, and what you can think about for the future. Each of our CPA consultants has the necessary qualifications to take on this responsibility. If you don’t spend every day pouring over your financials, this is a great way to get an objective diagnosis of your bookkeeping, while also relieving other team members from having to administer this potentially awkward task.
Insist on greater visibility and processes
You might think this is more of a preventive measure, but having robust processes will make a bookkeeping audit an easy thing to do. You, as the business manager or financial lead, should insist on greater visibility from your bookkeeper so that there are no surprises or avoidable mistakes to correct later down the line. Our i3 Group consultants will conduct this audit based on an experienced method, with guidance provided to your internal team on how these processes can be adopted hereafter.
Spread the responsibility
A great way to audit your bookkeeping department or employee is to establish a two signature policy so that you can share the responsibility across the team, and double your chances at stopping any irregularities. This is customary in most medium to large offices, but smaller offices might not have the same policy. Unburden the weight of one individual and split it among the ranks, and you will find that your bookkeeping audits will not need to be as in-depth or regular. If you are unsure if this is the right decision for your office or just more paperwork, talk to our i3 Group consultants to gauge the best model for your unique operation.
Make the switch from analogue to digital
Are your manual processes continuing to cause bottlenecks in your business? With the rise of digital finance solutions, there is no need to be plugging away at a spreadsheet or managing a pile of paperwork. These digital advances are far from ‘one size fits all’, allowing businesses to use some digital functions or digitise all their processes. This makes a bookkeeping audit as simple as perusing a user-friendly dashboard, with further reports easy to run and review. The decision to leverage digital solutions is up to the business, but these arrangements always work more effectively when used in conjunction with an outsourced solution.
If you planning a bookkeeping audit or would like to know what is involved, contact our friendly team at i3 Group to learn more about our outsourced solutions.
Interested in more small business advice? Check out our master guide here!