Although this increase means that many businesses will be exempt from company audits Brian Scott from Cardiff and Bridgend based accountancy firm Graham Paul explains the value of the audit process and why companies should still continue to use them.

Although audits are diminishing as a result of the changes in the criteria requiring them, it is thought that a large number of SME’s will still want an annual audit long after the threshold has been raised. The reason for this explains Brian, is because audits provide a cornerstone to financial reporting. They furnish valuable and reliable information to banks, tax authorities and others who desire to make financial decisions.

As a director you can be confident that your audit gives you the assurance that the financial position of your company is entirely understood. For example, an audit can show the general financial position of a business, as well as identifying trends that could lead to future problems.

Most companies like to think of themselves as credible, and adding an audit report to a set of accounts only increases the integrity of your financial information, as it helps greatly when presenting material to banks, leasing companies, the Inland Revenue and Government Agencies, to name but a few. In fact some lenders may require an audit as a condition of a loan.

One of the most beneficial factors of having a company audit is, that it enables your accountants to completely understand your business. As a result of this, your accountant can provide you with quality advice in invaluable areas such as improvements in the accounting process, your tax position, ensuring your business is complying with Government regulations and so on.

The benefits of the close involvement of an independent financial expert should not be underestimated, and the presence of an adviser can ensure that your accounts give a true and fair view of your company’s position.