How to Prepare Your Business for Financial Audits

Audits are an opportunity to prove the integrity of your books and the health of your business. Preparation reduces stress and speeds up the audit process.

Before the audit

• Organize documentation: bank statements, invoices, payroll records, contracts, and tax filings.
• Clean up ledgers: reconcile bank accounts and clear long-outstanding items.
• Review internal controls: ensure approvals, segregation of duties, and access logs are documented.

During the audit

• Assign a single point of contact for auditors with full access to required documents.
• Provide explanations for unusual transactions and keep supporting documents ready.

After the audit

• Implement auditor recommendations quickly.
• Use the audit report to strengthen internal processes.

Result: A well-prepared audit increases investor confidence and reduces the chance of post-audit penalties.