![]() A business can be successful only when it is sure of the accuracy of its financial statements. Any error, inconsistency, or compromised quality can affect the firm adversely. While preparing the books and accounts, the bookkeeping and accounting service providers match internal statements with external sources to identify discrepancies. The reconciliation process is an in-depth comparison occurring periodically using business bookkeeping software (usually a month) to keep the records up-to-date and correct. After reconciliation and financial reporting services, it comes under the IRS' radar when the business files its taxes. If the IRS finds anything wrong with the tax payments or files, they can order an audit. A financial audit involves verifying the accuracy of statements prepared and information filed with the IRS. It ensures credibility to the stakeholders. Although the process seems daunting, businesses need to comply appropriately to ensure no problems. The following five steps can help ease the financial statement audit process for the firms: Implement excellent practices throughout the period Firms must have good accounting and bookkeeping practices to avoid errors, manipulations, fraud, or other potential problems. Businesses can minimize the costs and time associated with constant reviewing and correcting. Periodic reconciliation will lead to no delays in preparing financial statements at the year-end. Moreover, good bookkeeping promotes systematic structure and organization. There is clear accountability and responsibility. Firms can document and store their income and expense information in proper places to find them when needed. Virtual bookkeeping services play a critical role in saving information electronically and avoiding later losses or wear and tear. Understand your financial situation As a business owner, no matter how extensive your financials are, you must know and understand them properly. The auditor will also face problems if you do not see the meaning and reason behind specific activities recorded in the books. Also, when they ask you about the same, you won't have adequate replies. Thus, the financial information must make sense to you before auditing takes place. Put your paperwork together It can become highly challenging to review a company's position with highly messy and chaotic paperwork. Businesses need to store their documents and other essential records properly, preferably in business bookkeeping software, to ensure they do not miss or tear them. However, the records that do not have a place on software must be stored in proper files to prevent mis happenings, stealing, manipulations, etc.
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AuthorWhiz Consulting provides bookkeeping & accounting services for UK-based businesses. We provide outsourced accounting, bookkeeping, payroll and taxation services to Birmingham, London, Manchester, or other parts of the United Kingdom. We provide services to all businesses irrespective of the scale of operation and industries like real estate, hospitality, healthcare, e-commerce and so forth. We have accounting solutions for every business, with the experience and knowledge of all the popular accounting tools. We will assist your businesses in managing cash flows, financial statements, bank & day to day transactions record-keeping, and monitoring the overall expenses made by the business. We will ensure your books are kept neat and reconciled throughout the year. We provide our services at a competitive cost as compared to hiring local or in-house bookkeepers and accountants. |