The monthly financial close process is a daunting task for many small and medium businesses (SMBs), as it consumes many hours to double-check data and formulas, fix mistakes and consolidate multiple spreadsheets into a final set of financial reports. For many SMB’s, this process is all done manually which really extends the amount of time it takes. As a result, the chances of errors are relatively high which can result in severe consequences for an organization.
“Audits” are usually considered a monumental undertaking for small and medium business (SMBs) owners. However, audits plays a critical role in helping to evaluate the effectiveness of a company’s internal controls, availability of reliable financial reporting, fraud prevention, utilization of its assets and reduction in its cost of capital. Audits also ensure that the business is meeting the expectations of their stakeholders and meeting regulatory requirements of the industry.
Below are the best practices that can help audits flow smoothly, while delivering lasting benefits which will enhance business performance.
For any business whether small, medium or big, the significance of financial reporting cannot be underestimated – it provides information about the financial position and changes in the financial situation of a business. However, the flip side of that coin is that financial reporting is complex and many businesses find it challenging to assemble the right team of people that can keep them in compliance as well as provide timely information in a format that allows their management team to make informed decisions when needed.