Receiving a letter from the IRS stating that your business will be audited is enough to make anyone’s head hurt and your blood pressure rise. After all, about 1 in 100 small businesses are audited each year by the IRS. However, you can prepare in advance by having an accountant at ORT Consulting conduct an audit of your business finances. Business audits should be performed for several reasons:
Uncertainty in Business Financials
Financials are the foundation upon which your entire business rests. Without a solid foundation, the whole business may begin to fall apart. ORT Consulting can ensure that your business statements are in good standing. We will examine all internal finances, such as payroll and operating expenses, to ensure that your business pays the correct amount in taxes. Should any irregularities arise during the audit process, we can advise you on the best route to take to lessen the penalties and fines.
Financial audits will also help assure private investors or stockholders that your business is in good standing. This may strengthen their resolve that your business was a good investment opportunity.
Securing a Business Loan
New businesses, or ones that have not had an audit conducted in the recent past, will need an audit to secure a loan. Banks and other lending bodies are more apt to approve a business loan if your finances have been audited. Financial audits will also help you get your business documents together for submitting the loan application.
Selling the Business or Entering a Partnership
If you are interested in selling your business, you will need to show clear financial records to any potential buyer. Buyers will shy away from any company with rocky financials because it is difficult to understand how the business is performing. If you are interested in bringing a business partner into the mix, you will also have to show clear financial records. ORT Consulting can help your business get off on the right foot with a future business partner by performing a financial audit for you.
Business financial audits can significantly improve the standing of your business. ORT Consulting is happy to provide a free consultation to determine if our audit services are right for you. Our accountants are available for appointments by contacting 773-637-8802. We offer several levels of audit services depending on what your company requires.
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