For any company, it is essential to have quarter and annual financial audits (often mandatory by law). However, the auditing process if not managed properly can be a real nightmare for many businesses.
It is the responsibility of the company to obtain right resources and create a more sophisticated and accurate accounting process that makes it easier for the finance department to conduct their audit.
Businesses can automate this auditing and bookkeeping process. There are several advantages of doing so:
- Helps in fast and accurate data entry and calculations
- Streamline accounting process for greater efficiency
- Reduces risk of human mistakes and resulting financial issues
- Superior organisation and consolidation that ensure faster and more efficient internal and external audits.
- A good way to track and map transactions and cash flow across several documents and platforms.
Organising Your Financials for Audits
Businesses should map their finances so that they can be traced from various statements. This stage is extremely necessary when it comes to preparing for an audit.
When a business keeps a trace of all its transactions and maintains a level of organisation that is suitable for creation of accounting reports, they can ensure that auditors can more conveniently assess the accounting processes.
Remember that it is of utmost importance for any business to keep detailed records that cover all their financial transactions and activities. This process sounds simple in theory, but implementing it in reality is a challenging task especially for businesses that use outdated bookkeeping and accounting processes.
When a company attempts to trace the financial information with the traditional or outdated accounting systems, it can quickly bottleneck the audit process and as a result it can become a time consuming activity. Resources that will allow you to automate the accounting process can greatly simplify your efforts to organize and manage past records.
Automate Consolidations to Improve Accuracy
As the accounting process is complex, managing and tracking funds of multiple departments exposes your business to greater risks of errors and misstatements. When outdated or traditional methods are used to maintain the financial records, it becomes difficult to consolidate information. This is especially true for larger organisations with high volume of transaction history and multiple assets and accounts. It is even difficult for businesses that have implemented multiple methods and platforms in order to trace the financial transactions and activities.