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How Can Auditors Improve The Performance Of A Business?

Sometimes, a business, even a successful one, can become like a bureaucracy. Meaning that man-hours, resources and capital are expended needlessly. Audit services can help a great deal.

No-one ever intends for their staff to get tied up in regulations and paper work, to duplicate tasks, or to needlessly waste money on things the company does not need. It just happens over time, in many institutions. Sometimes it can be because of the "groupthink" effect, or often it can just be the way your company has always done business without anyone daring to question; "why?". It can sometimes require an outsider to see it.

Getting in an outsider is really the best option in many cases

An audit carried out by an external company can do a great deal to cut through this herd mentality, and get to the bottom of expenditure. Someone from outside the company has no emotional attachment to any member of staff, making them completely impartial. This means that they can say the things which may hurt feelings, but which really need to be said nonetheless. They can act without prejudice, without attachments to flawed ideas or procedures or the flawed ideas of their friends.

This might sound harsh, but if something is going financially wrong in your company, the best people to diagnose the problem, and proscribe a cure are not often the people who caused the problem to begin with. Particularly if some of those people may have a vested interest in maintaining the status quo.

Decreasing waste is just as good as making profits

Businesses chase sales, it's what the business world does, and the main reason why companies exist. But it's not the be all and end all. Sometimes, the best way to make money is to reduce overheads. Both can result in increased profits, it's just that reducing overheads is often far less risky than spending great deals of money to chase sales that might never materialize.

It's human nature to want more, to spend, to gamble, to acquire. It can be hard to hear that you may need to go backwards, to cut-down. For example: perhaps spending £100,000 re-furnishing the office building on the vague promise that it might increase revenues isn't the best idea. Perhaps spending hundreds of thousands on advertising without any assurance that the company will benefit isn't necessary.

This goes against many people's instincts, to be told that less is more, and that sometimes going forward means taking a step back. Audit services will help show things in the cold light of day.

If you can cut down waste, and survive in a recession, then you will reap the rewards later.

It's often said, and it continues to be true; that companies who can do well in a recession are best placed to benefit massively come the recovery. Eliminating waste now, while money is tight, will set your company in a strong position.

That being said; a professional audit & accountants firm will not only eliminate waste, but will also help you see where you can better allocate resources. If your company is in a strong position to take advantage of the current climate, then audit services will suggest where. It may be that because you've tightened your belt in the lean times, you have enough capital to purchase assets that are at a vastly reduced price. A full audit provided by a top firm will point you in the right direction of where these opportunities exist.