The audit is changing, and the regulations and monitoring of audit firms have never been more onerous. This is because of some high-profile business failures that we were supposed to have been through the audit process.
This has meant that the audit cost has increased for clients by 35%. Many businesses that don’t need a statutory audit have an audit because they enjoy comfort from the external review of their accounts.
But now, with the increased cost and arguably no additional comfort, is audit value for money? Would the money be better spent elsewhere?
We think so.
The budget could be spent on a couple of alternative services from your accountant.
Firstly, why not use the funds to pay your accountant to give you proper business improvement advice? For the annual cost of an audit, you could pay for a monthly meeting with your accountant to help you create a business improvement plan and hold you accountable to ensure you achieve your business’s potential.
Take a look at our ‘the Way’ business improvement program. A proven system that uses a detailed process that reviews your 7 key numbers and then looks at 5 levers of success to transform your business.
Or how about you spend the money on understanding your business better? Again, you could have reliable, accurate management information for an audit’s annual price to help you make better business decisions and plan for success.
Or if you like some comfort about the figures you produce each year, consider an ‘assurance report.’ This is a review of your accounts, which concentrates on the critical aspects of it, giving valuable comfort tailored to the business rather than a ‘one size fits all’ audit report.
The time spent by your accountant will be spent on your books rather than just a form-filling exercise, likely for less than half the cost of an audit.
Some businesses have no choice but to have an audit, but if your business has an option, other services offer better value for money.