There is more to an audit than simply going through one. Other valuable things can come from audits that business owners should consider. In the next episode of PKF Texas – The Entrepreneur’s Playbook®, Jen Lemanski learns more benefits from Senior Manager Kimberly Wood, CPA, CEPA.
Jen: This is the PKF Texas – Entrepreneur’s Playbook®. I’m Jen Lemanski, and I’m back once again with Kimberly Wood, an Audit Senior Manager and one of our Approachable Advisors™ here at PKF Texas. Kimberly, welcome back.
Kimberly: Thanks for having me.
Jen: We’ve consistently talked with you about transactions and things like that, and I know there may be some reticence on the part of like a smaller business to invest in an audit. Why should they go ahead and do that?
Kimberly: Yeah, so a lot of small businesses think that audits are unnecessary and expensive. Business owners don’t ever… they don’t find value in a financial statement audit, but the primary benefit of an audit is trust and reliability. And those are actually the key elements for evaluation of a company.
Audits can also help identify and enhance a company’s accounting and internal control process. They help the company comply with generally accepted accounting principles and they help validate the financial data.
Jen: And is it something that could potentially… I mean, we can’t make any guarantees, but could it potentially strengthen their position when they’re looking for someone to purchase their business?
Kimberly: Oh, yes, of course, because that means they’re prepared for anything that may come up and then they’re on the accrual basis of accounting, which is what buyers are looking for.
Jen: Perfect. Sounds good. We’ll get you to come back and talk a little bit more about transaction work. Sound good?
Kimberly: Sounds good. Thanks.
Jen: This has been another thought leadership production brought to you by the PKF Texas – The Entrepreneur’s Playbook®. For more information about this and other topics, visit www.pkftexas.com. Tune in next week for another chapter.