How to Ensure a Smooth and Successful Annual Audit
As we wrap up 2023 and look ahead to 2024, there's an essential task on the horizon for businesses on a calendar-based fiscal year— the annual audit. Sure, planning the office holiday party is much more fun, but making the time for audit preparation is crucial. It sets the stage for a smoother 2024, allowing you to return from your break ready to tackle the year ahead.
In this guide, we'll break down the annual audit, explaining why it matters and how it can benefit businesses, especially those just starting out.
Understanding the Annual Audit: Unravelling Financial Checks
An annual audit isn't just paperwork; it's a key move for a healthy business. Done by an external audit team, it carefully examines your company's financial activity, checking your accounting records and internal controls, ensuring that you've been adhering to applicable regulations. The result is a detailed report that gives you insights to make the best decisions for your business.
The timing of your annual audit depends on when your company's financial year starts and ends. Most companies do it at the end of the calendar year, but it can take a few months to complete, depending on how large your business is. In Singapore and other places where small companies aren’t required to do audits, many entrepreneurs still perform audits as a means to ready their businesses for growth and optimise financial performance.
End-of-year audits provide companies with:
Useful feedback on their operations and procedures
A guarantee that all compliance obligations have been met
Insights into potential gaps in accounting procedures and financial statements
Reassurance their financial results are accurate, up to date and can be relied on to inform business decisions.
Strategies for a Smooth Audit Process: Your Simple Plan
A smooth audit process will result in higher quality, more accurate auditing and a more pleasant experience. As your ally in your financial journey, Accela Finance has compiled a useful list of simple tips to smooth the creases in your annual audit process:
Plan Early: Spread out audit tasks throughout the year so you're not rushing at the last minute. Plan what will be checked and when. This helps build a good rapport with your auditor and catches any mistakes early, e.g. accruals and prepayments.
Consider an Audit Liaison: Have you ever wished for someone who could speak to the auditors for you? An audit liaison acts as a bridge between companies and external auditors, ensuring communication is efficient and accurate. Accela can be your steadfast guide, making sure everyone communicates with clarity and your busy teams avoid errors and rework during the audit process.
Check for Supporting Documents for Major Transactions: Missing or miscategorised supporting documents for big transactions can often cause bottlenecks in the auditing process. Avoid this misstep by identifying and organising transaction support documents ahead of time.
Regulatory Compliance: It’s easy to get hyper-focused on internal finance and controls, and overlook the fine print on government regulations. Companies must consider regulatory requirements and compliance, as failure to comply could lead to legal repercussions.
Communicate With Internal Stakeholders: Sudden requests for information requiring significant effort to prepare can be off-putting for internal teams, especially during the busy year-end planning period. Let everyone in your company know about the audit plan ahead of time so they’re ready in advance for any requests.
Experience a Stress-Free Audit with Accela
Accela Finance is here to make your annual audit painless. Our experts help your business talk to auditors and keep your books in order. This doesn't just make paperwork easier but also cuts down on mistakes.
Is your organisation looking for a smooth and successful end to 2023? Get in touch with us to see how we can make it happen, at hello@accela.asia
