When Should An Accounting Audit Be Done In Your Business?

It might not seem necessary to go through and redo your company's accounting or to check back over your accountant's work. You might assume that everything is done properly. However, occasionally, performing an accounting audit can be a good idea. These are some of the times when an accounting audit should be done in your business.

You're Being Audited By the IRS

If you have received notice that you are going to be audited by the IRS – so that they can check the authenticity of your records and tax return – then you might be understandably nervous. In fact, even if your tax preparer has told you that you might be at high risk of an audit for one reason or another, this might be something that you are worried about. Either way, if you are facing an audit or think that you might, you should definitely consider hiring someone to do an accounting audit. Then, you can make sure that all of your paperwork lines up with what you have submitted on your tax return. This can give you some comfort and help you calm down when you're facing an audit. It will make it easier for you to provide proof that your tax return has been filed properly, too.

You Think an Employee Might Have Done Something Wrong

You should not have to worry about your employees mishandling your company's money, stealing from your company, or making intentional mistakes with your accounting. However, unfortunately, this is something that happens in businesses all the time. If you suspect that an employee might have done something wrong with your company's money or paperwork, then you should definitely think about hiring an outside party to perform an accounting audit. If they find that something was done, then you might need to work with a forensic accountant and the local authorities so that you can take proper action.

You've Noticed Mistakes With Your Company's Financial Documents

When going in and looking at some of your company's financial documents, you might have noticed that there were some errors. If this is the case, then you could be worried about the possibility of there being other errors that you don't know about. If so, an accounting audit might be a good idea. Then, if there are any errors that could impact your company's finances, you can fix everything.

You Haven't Done it in a While

Hiring someone to perform an accounting audit for your business probably isn't something that you will need to do all the time. However, if you haven't done it in a while, it's not a bad idea to perform an accounting audit. That way you can gain peace of mind in knowing that your company's finances are being handled properly.

For more information about performing an accounting audit, contact a company like Berdon LLP.