SachinGujar& Associates (SGA), a well-known Chartered Accountant Firms in Pune was founded in 1999 under the guidance of our founder member Mr. SachinGujar, a Fellow Member of the Institute of Chartered Accountants of India (ICAI). Since that time the company has been providing quality services, including company audit services and know for its best auditor services in Pune.
External audits are unbiased and independent reviews of a company financial records. Business owners can contract accounting or auditing firms to conduct this review. Remember, it can be expensive, but it has its benefits. 5 major advantage are listed below:
Advantage 1- You can use external audits to find out errors or mistakes in your accounting process. Remember, errors in accounting information can prohibit you from making the best decisions. Besides, you can find it difficult to review historical financial information and find trends if the errors are in place. Additionally, trends allow you to plan future production output with estimate business sales for the upcoming months. Moreover, external audits make sure you are recording financial transactions, according to accepted accounting principles.
Advantage 2- You may need a loan for your business. Banks and lending companies, also known as money lender companies will require that you provide audited financial statements because this report provides reliable insight to your company’s possible value. Your company’s net assets adjusted for goodwill can help you expect its current value, and if you are willing to sell it, this can help you set a price for it. Likewise, tax authorities, perhaps more willing to place trust on your calculations for income and sales taxes if you present reliable financial statements of your company.
Advantage 3 : If your internal auditor is unfaithful to the company, then the external audit is very necessary as it can verify the accounts of your company to determine whether your organization has true accounts or there are some false or unfair accounts are there.
Advantage 4: External audits can educate you on the importance of accounting information in business. In addition, business owners work closely with external auditors to enhance their accounting process, so external auditors can provide them with information on current accounting issues. Besides, public accounting companies also provide business owners with free educational seminars to improve their companies accounting process. So, making a personal relationship with a public accounting firm will provide you with insight for future accounting issues.
Advantages 5: Do you know that auditing is very functional in getting the sovereign opinion of the auditor about the condition of the company? So, if your company accounts are audited by a sovereign auditor, then the report of the auditor will be true in all respects, and it will be of very significance for the management of the company.