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Why Business Owners Should Invest in an Audit

by | Aug 22, 2022 | PKF Texas - The Entrepreneur's Playbook®, Insight-Post

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.

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