The good financial health of a company is essential for the survival of the business. A control on finances guarantees greater transparency and the possibility of increasing profits. For this reason, the Internal Audit for companies offers many advantages. In the case of needing a line of credit or investors to continue growing, this study becomes a very useful tool.
First of all, the most important thing is to trust a professional company that has experienced auditors. In this aspect, Legalnet is a benchmark in the field. The area of Audit & Assurance is of great help for the growth of any type of business. Studying the risks and opportunities, as well as providing reliability to the statements of accounts and financial statements, guarantees a more promising future.
5 reasons to carry out a financial audit
The financial state of a company includes some variables such as its assets, the general balance, the cash flow or its accounting policies. The hiring of an internal audit allows identifying vulnerabilities to make a business much more successful. Below are some of the reasons to value this service.
1. Identify risks and opportunities
During this work, the auditors identify the possible risks and opportunities in the company. In this way, it is easier to implement a strategy to prevent the business from failing. The information extracted is of great value to make quick decisions and with more guarantees of success.
2. Credit rating
The report that a financial audit yields is very beneficial to demonstrate to partners, shareholders, investors and banks that the company is profitable. A solid business with a feasibility study is a great attraction. In addition, it generates greater confidence for the granting of a loan or credit. The auditor will be able to corroborate that there is payment capacity.
3. Security and trust
Another of the great advantages is the possibility of detecting errors and correcting them. In this way, you can design a new, more effective business plan that offers greater confidence. A company that guarantees security is much more reliable for all those involved in it. This can only be achieved if an impartial, objective and rigorous evaluation is carried out.
4. Business quality
The assurance services are used to evaluate the financial reliability and the quality of the company. Therefore, it will be necessary to rigorously analyze the accounting records, as this favors good business management and increases investor confidence.
5. Comply with the law
Finally, the law must be respected to avoid sanctions or incurring illegalities. Article 257 of Royal Decree 1/2010 of July 2 states that a company must undergo an audit if a series of circumstances occur.
- The asset exceeds 2,850,000 euros.
- The turnover exceeds 5,700,000 euros per year.
- The company hires more than 50 workers during the financial year.
In conclusion, with this information the reasons for doing an internal audit in the annual accounts are clear. It is not necessary to be a large company to hire this service, really, any business can undergo this study. If in doubt, it is best to put yourself in the hands of experts like Legalnet.
