Hire an Auditor- Get Crucial Help with Tax Audit

Posted by David Camroon on June 23rd, 2017

Business owners often dread annual audit and consider it as an order designed for complicating their life. But actually there is no reason for viewing the annual audit of your company in a negative light. The reality is that the audit is an exceptional tool for ensuring that the financial procedures of your business are in perfect order. It will actually provide you assurance in the strength of your business financial system.

It is advisable to be prepared for the annual audit. This will not also assist the auditors, but will also enhance the value of your business. With the ready availability of the online medium, you can easily search the internet to discover a reliable auditing firm that can help with tax audit. You and your auditor can work together and search for ways for enhancing business efficiency and minimizing errors.

Even though sometimes the audit may be intrusive and disruptive, but if you cooperate and supply the required information, it will significantly contribute to the speed with which the auditors can perform their work. The auditing process can be an expensive undertaking, but consider it like an investment rather than an expense. The expert auditors will help in analyzing and evaluating the procedures and accounts as well.

How to prepare for an audit

As the owner or financial officer of the company, you require discussing with the auditor the requirement for assistance and work out a high priority for agreed upon items. Another way how to prepare for audit is maintaining the time of the engagement. Ascertain contact personnel for specific areas under audit for avoiding any probable scheduling conflicts like holidays, out of town needs, work schedules, medical procedures etc. Make sure to prepare the deadlines for discuss relevant estimated utilized in the financial statements like percentage of completion, warranty reserves and allowance for uncollectible accounts.

The information which the auditor can ask for

As auditors express their opinion the broad financial statements, they may request for typical items of your company which are a part of normal accounting process. An auditor will objectively and systematically obtain and evaluate evidences regarding the basic financial statement assertions contained in the numbers including rights and obligations, completeness, occurrence or existence, presentation and discover valuation and allocation and so on.

A competent auditor can significantly help you California tax audit. Be candid and open with the auditor and discuss about the difficult areas you often encounter, questions, concerns and recommendations you may have or require about your business and industry!