Audit of financial statements reflects the accuracy of the financial position of the company. While it is mandatory for public and large companies to get their financial statements audited, the same does not apply to smaller or mid-sized companies. Although, small and medium-sized enterprises can willingly get their accounts audited for their own benefit.
Audited statements demonstrate consistency and objectivity in the financial reporting and at the same time establishes a clearer view for planning future business activities. Moreover, it saves a company from possible frauds by identifying the issues beforehand that may damage a company’s reputation. Therefore, audit services are of great importance for small as well as big companies.
Reasons why SMEs should consider audit services
- Identifies Issues
The primary purpose of the audit is to identify issues and problem areas right at the inception. When you hire audit firms in UAE, they help you identify the issues in your financial statements, if any and also help you correct them in a timely manner. This, in turn, helps the company get a competitive advantage over its competitors in the market.
- Identifies Weaknesses
Audit conducts a SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis of your business. It helps you identify a particular business process which is weak and prone to threat or damage. This, in turn, helps you improve your business processes and functions.
- Improved Accounting
When you hire audit firms in UAE, you indirectly eliminate the risk of poor accounting. They help you improvise your accounting function and assure the owners of the company that everything is in place especially when they themselves are not involved in the day-to-day functioning of the business.
- Prevents Fraud and Misappropriation
Fraud can not only harm the finances of the company but also damage its reputation. Audit helps SMEs prevent the chances of fraud and misappropriation in the company. It also builds brand value and good image of the company in front of its customers, suppliers, stakeholders, etc.
- Improves Internal Control
Audit services help SMEs improve their internal control system. By emphasising on controls like segregation of duties, increased oversight, restricted access to financial systems, third party review of financial statements and much more, the efficiency of internal controls drastically improves.
- Improves Credibility
When you hire external auditors, it demonstrates your real commitment to compliance. In other words, it is an indication of how reliable your company is towards the investors. It brings a lot of credibility in the eyes of potential investors and stakeholders.
- Business Improvements
SMEs should strongly consider hiring audit services in order to improve their business processes. Auditors possess expert knowledge and experience which helps them advise you on how to streamline your process and improve them. It also helps you make cost-savings within your supply chain.
- Business Legalities
Auditors are well qualified and aware of all the business legalities and compliances that need to be followed while running business operations. They can bring to your notice any non-compliance or breach of law and advise you on how to rectify it in a timely manner.
The above mentioned are a few benefits of conducting a financial audit for SMEs. It is advisable to get the audit done from expert professionals such as IMC Group who can help you present the correct picture of your financial statements. Moreover, IMC Group is a leading audit firm in Dubai with over 20 years of experience, dealing with different industries. Get in touch with IMC Group to transform your business entity’s future to a great extent.
