Any business owner would wince when they hear the word audit. They consider that the amount of time and money spent on the audit service could be better used for business development. However, that’s not true. In fact, the auditing process can turn out to be very beneficial for future growth and development, regardless of the size of the company.
Various plans of the UAE government and the conclusive business environment have not only resulted in the economic growth of the country but is also the prime reason for the rapid increase in the number of businesses. This rise has created a massive demand for auditing companies in the UAE.
Let us take a look at what an audit is and how can it enhance the overall growth of a business.
What is an Audit?
An audit is a comprehensive inspection of your company’s financial health. It helps the owner to form an opinion about the current functioning of the business and helps in making future business decisions. An audit service company in Dubai provides a report which is the most crucial document for an investor who wishes to invest in the company. As it allows for a precise and complete financial standing of the company. An audit has different categories which include:
- Internal audit service
- External audit service
- Statutory audit service, etc.
How Can Auditing Boost Business Growth?
What an audit does is that it finds flaws in the company’s overall functional chart. It points out any left out plans and helps in pointing out the company’s weaknesses.
Here are some of the ways that an audit can help your company:
Identification of flaws:
An audit service company in Dubai will help you in assessing various risks faced by the company and revising risk management. It also helps in reviewing the workings of the business. This results in the boosted performance and overall growth of the company. It also allows for avoiding any such issues in the future. There are various auditing companies in UAE that can help you with the analyzing of your business.
Discover Fraudulent Activities:
Auditing reports of the financial department of your company can help investigate fraud and provide a comprehensive picture of the business’s financial status. It allows you to carefully scrutinize the workings of the company and uncover fraudulent acts. This improves the overall growth of the company and keeps a check over all the processes.
Better Tax Management:
An auditor must find out if there are any significant tax risks and should warn the management in there are any such risks. It helps in minimizing wrong tax return filings. It also prevents any tax violations and the occurrence of other risks related to taxation procedure. Auditing companies in UAE also focus on decreasing the chances of substantial penalties.
Report of an audit service company in Dubai provides a clear picture of the company’s current financial status and help in expanding into new markets and segments. The business audit would give a clear and comprehensive insight into the company’s growth, which would help the company to focus on plans.
An audit of the financial section of the company provides the partners and stakeholders with an enhanced sense of confidence, which helps in seamless business growth. According to them, audited financial statements are way more reliable than unaudited ones. It can be very beneficial if the business is trying to gain fundraisers. Auditing companies in UAE have helped in many mergers and they have benefited a lot from auditing reports.
Sale of the Business:
Auditing adds a layer of assurance and improves the credibility and reliability of the data being provided to the purchasers. It would significantly speed up the transaction process. Verified and correct details about the business will help in the preparation of the due diligence of the audit report.
Helps With Insurance Claims:
The insurance company conducts an internal audit before determining the extent of damage done, and then decide the value to be provided accordingly. Here, having a financial audit beforehand can improve your chances of validating higher compensation.
Determine Profit or Loss:
A financial audit provides complete details of all the workings of the company which helps in better management of the company. It also defines the profit or loss caused to the company by various activities. As a businessperson, you would then be able to make decisions favouring the growth and development of the company.
Helps in Obtaining Loan:
With the financial books and documents revised during an audit, they reflect the right image of the business. Thus allows banks and financial institutions to provide you with loans and other financial help to the company. As a growing business, you must maintain a record of at least the previous five years and also have the audit reports of the corresponding years.
Regular auditing does not leave out any flaws of the company and having regular audits means that the company has nothing to hide. It is an excellent boost to the morale of the business stakeholders of the company. Also, it sends out a message to the potential investors that the company is perfectly clean and helps in improving the goodwill of the company.
The points mentioned above make it very clear that there are numerous benefits that a company can avail by conducting an overall audit of the company. Without an audit, it can become very challenging to determine the exact progress of the company and pinpoint any flaws in the workings of the company. These features of an audit would help the business in getting an accurate and precise financial picture and would also allow taking managerial decisions regarding the future of the company. As the company grows and the business expands, the complexity of the audit process increases. Thus, the auditing of a company should only be done by a reputed and a professional auditor.