What’s the first thing you think of when you hear the word “audit”? You probably think of people from the IRS showing up to take your money.
But there is another kind of audit, and it is one that can actually help you make money in your business.
This is the process of getting an audited financial statement, where a CPA comes in and verifies the accuracy of your books (among other things).
Usually business owners only get one of these once the bank asks for one.
But here are some reasons you should proactively consider getting an audited or reviewed financial statement:
1. You plan to sell part of all of your business in the next few years.
Having multiple years of audited financial can actually increase the multiple you get when selling.
2. You have lots of financed equipment or capital leases.
This means you have lots of interest expense, and an audit can massively lower your interest rates
3. You are growing rapidly.
When you are growing it is typically a bit chaotic, and you leave yourself massively exposed to potential theft. Getting an audit can help you sleep better knowing there is no funny business going on.
These are just a few ways that asking your CPA for an audit can actually be a profit center for you.