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Audited accounts: 3 benefits

Diageo - the drinks manufacturer behind Guinness, Smirnoff vodka and Johnnie Walker whisky - recently ended a 17-year relationship with its auditors. The move complies with competition rules that force large publicly-listed companies to put their auditing work out to tender every 10 years.

It won't surprise you to learn that the Diageo auditing contract was simply passed from one top 4 accountancy giant to another.

Diageo's 2014 accounts show that it spent £7.3m on auditor's fees last year and that pre-tax profits were £2.7bn.

But let's imagine for a moment that Diageo isn't a global, multi-billion pound company and didn't have to have its accounts audited by law. What would be the benefit of investing 0.27% of its profits, voluntarily, in an audit?

1. Add credibility to financial statements
If you're a small business with growth ambitions, the chances are you'll need to raise finance at some point in the near future to achieve those goals. With a professionally-prepared and audited set of accounts, convincing potential lenders to finance your plans will be considerably easier. Your business's credit rating could suffer without an audit.

2. Identify financial and management process improvements
Whether we're helping you meet statutory obligations or you're going through the process voluntarily, we see the audit as a chance to scrutinise your business and management processes. Our professional, external insights in these areas can be invaluable to small and growing owner-managed businesses.

3. Keep shareholders, directors and employees informed
If you've got shareholders or directors who aren't involved in the business on a day-to-day basis, it helps if you can periodically provide them with important financial information in an easily-digestible format. This goes for regular employees and customers too. A report compiled by an experienced accountant and auditor helps you build trust and transparency.

Talk to the experts

Having your accounts audited when you qualify for an exemption may seem like an unnecessary cost. However, the long-term value audits provide cannot be underestimated.

Our experienced auditors can work through your audit quickly and thoroughly, leaving you with a detailed report that significantly enhances your external image.

Contact us on 020 8515 2929 or email geoffk@knightandcompany.co.uk to discuss your business. Perhaps we'll surpass the 17-year relationship enjoyed by Diageo and KPMG.