As a business owner, it is important for you to be ready for an audit at any given time. Almost anything can be audited, from your income to expenses to everything in between. It is impossible to be an expert in it all, which is why knowing the basics is so important! In this article, we will explore the top tips you should follow when preparing for an audit.
Review New Accounting Standards and Rules
Remember that accounting standards and rules update from year to year. These updates are a result of various economic factors that play a part in running a business. Before starting to prepare for your audit, be sure to review updated audit rules, so you can be confident that your business is up to code.
Review Errors You Made Last Year…and Don’t Make Them Again!
If your audit did not go perfectly last year, review those mistakes to ensure you do not make them again. Just like filing taxes, making audit mistakes is common. However, you want to be sure that you do not make these mistakes again, to avoid extra fines and fees. Review the materials that were audited previously, and make a special note to be sure these items are cleaned up this time around.
Be Clear on Your Required Timeline
Preparing for an audit is not always an easy task. This process can take weeks to months, in order to be completed correctly. Be sure to get familiar with the required timeline you need to follow in order to submit all documents before the deadline. Give yourself enough time to prepare for each step of the audit, so that you do not run short on prep time. Preparing for an audit and running a business simultaneously is not easy!
Hire a Professional If Needed
Don’t be afraid to hire a professional to help you prepare for your audit if needed. This doesn’t necessarily mean that you have to hire somebody to come on board your team full-time. There are many freelancing sites where you can contract workers to help you finalize your audit. Hiring a professional to come in part-time will help you be sure that you have not missed any crucial steps when preparing for your audit.
Find a Tool to Help
Instead of working from a blank document or a spreadsheet, try to utilize online tools that are made to help you prepare for an audit. These tools will provide you with the templates and guidelines needed in order to get all of the documentation you need in order.
Preparing for an audit can be stressful, which is why organization is key. Remember, you don’t have to do it alone! Contact Bottom Line Consulting today to learn more about our accounting and bookkeeping services, and let’s get to work…together.