Professional financial auditors can be very beneficial for companies in San Francisco, as they can help your Bay Area business build credibility with external entities and catch accounting errors before they become major issues.
A financial audit is essential for building your company’s trustworthiness with outside entities. Audits conducted by a qualified and independent financial auditor in the San Francisco Bay Area provide businesses and their investors, lenders, regulators, and other outside parties with an unbiased picture of their financials.
When Should a Bay Area Business Get a Financial Audit?
There are many reasons why businesses may need to hire a financial auditor in the San Francisco Bay Area. Some of these reasons may include:
- Seeking new investment.
- Providing current shareholders with a financial report.
- Qualifying for new bank loans.
- Securing new insurance agreements.
- Identifying internal accounting deficiencies, fraud, or errors.
How do you find the right Financial Auditor for your San Francisco Bay Area business?
Finding the right financial auditor in the San Francisco Bay Area can be a difficult process. Your financial auditor must be a qualified, independent, and active licensed CPA in the State of California that has met the requirements to conduct a financial statement audit. Independence is also an important requirement so that the CPA can provide an objective opinion of the company’s financials. It is critical to find an external expert that is not already connected to your company.
What Does Professional Financial Auditors Do for San Francisco Bay Area Businesses?
A trusted financial auditor in the San Francisco Bay Area will conduct a complete examination of a company’s financial statements, including income, expenses, assets, liabilities, and more to make sure that your company has reported these figures accurately.
At the conclusion of the audit your financial auditor will provide their expert opinion in an audit report, which relies on generally accepted accounting principles (GAAP) and other applicable regulations.
What Are the Benefits of Hiring a Financial Auditor?
Financial audits lead to greater accountability and contribute to good business practices. Your financial auditor in the San Francisco Bay Area will provide a complete picture of how your business is performing.
If interpreted correctly, financial records can provide the owner the information needed to cut costs and maximize profits. A financial auditor can provide guidance to make sure a company has good bookkeeping practices. They can also help to improve cash flow, reduce debt, manage interest, and more. This will help your management make critical decisions on where to direct its focus and financial resources.
Additionally, your financial auditor in the San Francisco Bay Area will invariably locate mistakes that your internal system may have missed. Your CPA will provide suggestions on how to solve those issues, so you can correct them before they become costly mistakes.
Some businesses may even see a larger return due to the audit, in which case an audit can pay for itself.
How to Prepare for an Audit in the San Francisco Bay Area
At Chugh CPAs, LLP, our team of financial auditors in the San Francisco Bay Area will work to make the financial audit process as easy as possible for your business. To successfully complete an audit, businesses must provide their accounting records, including bank and financial statements, invoices, checks, receipts, journal entries, general ledger, and more. It is better to have more documentation than less.
A business owner must also understand the audit is not personal in any way. When a financial auditor catches a mistake, they can help the business fix the problem without penalties and/or legal ramifications.
Dealing with the IRS for Bay Area Businesses
A financial audit provides peace of mind in the case of a potential IRS audit. Since the IRS will penalize any non-compliant business, a financial auditor in the San Francisco Bay Area can identify and fix any potential problems before they escalate into compliance issues.
If the IRS has already conducted an audit of a business and found a discrepancy, business owners must remain calm and contact their trustworthy Chugh, LLP attorneys and CPAs for help exploring their legal and financial options.
When hiring a professional financial auditor in the San Francisco Bay Area, it is essential to understand the individual needs of your company. Whether a business handles their own finances or is looking for a second opinion, a financial audit is a smart investment. For specific questions, or to start your financial audit in the San Francisco Bay Area, contact Chugh, CPAs LLP.