Use Financials Audits to increase Profits

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U S E F I N A N C I A L S A U
D I T S T O
INCREASE PROFITS
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The word audit brings up visions of taxes,
the IRS, and lots of business records being
looked over with a fine tooth comb. But an
audit doesnt have to be a scary process, but
rather, a detailed looked at your business
practices, financials, and issues to improve.
The frequency of audits for your business
will depend on your business type and model,
but should be done at least once a year.
Many businesses do them on a quarterly or
twice- yearly basis as well.
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Auditing Income
This act can help a business understand how money
comes in from various sources, as well as
examine if there are better practices
or strategies to employ to increase income in any
way.
Looking at income streams and how they are
collected can determine if the right amount of
money is being charged, collected, and
allocated correctly to the appropriate
departments and accounts.
Examining income invoices can control if payments
are being made to you on time, and if not,
perhaps late fees should be charged.
In addition, if contracts are involved with
income, audits can help determine if all terms
and conditions were followed.
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Auditing Expenses
With expenses, audits can improve
business practices, looking for areas where
additional expenses could be avoided, fees or
taxes that may have been overpaid, or finding
areas where additional savings could be
identified.
Analyzing expenses can help determine
that payments were made on time, saving you as
the business owner late fees, as well as
reviewing terms and conditions to you as the
business.
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Auditing Tax Compliance Credits
In addition to expenses and income, an audit will
look through taxes paid by your business, to
determine that you are paying properly. There may
be tax credits or opportunities for saving that
you do not realize. Each state has their own set
of tax rules so its important to make sure
everything is paid on time and with your states
regulations, as well as on the federal level.
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Auditing Inventory Cash Reconciliation
Finally, an outside audit can help with
inventory and cash reconciliation. This can
especially be helpful for a business that has a
lot of product inventory and needs an
independent, third-party to make sure everything
is in order.
This includes making sure products were
sold properly, registered out of inventory
and reconciled properly, and that existing
inventory numbers are correct.
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Having an outsider auditor may cost the business
in the short- term, but could bring savings and
better business practices in the long-run. A
penny saved is a penny earned
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Source
http//www.exabookkeeping.com/blog
EXA TAX ACCOUNTING