When you start a small business, you are likely full of excitement and determination, but worries may also enter your mind. The word “audit” in particular can be scary to hear. But, an internal audit is designed to help reduce fear and improve your small business operations.
Use an internal audit to ensure your small business is on the right track. Is it operating optimally? You will get the answer during this audit, which includes assessing risks and double-checking compliance with relevant guidelines and legislation. The focus of an internal audit is on risk management, authority, and control processes.
How to Do an Internal Audit
You do not need to have a person devoted to this activity. Instead, it is your responsibility as the small business owner to designate individuals within your existing team to conduct the internal audit. Ensure at least two people do the audit so that it is objective.
Once the information on regulations and laws as they relate to company operations is collected, ask the auditors to create a report and discuss the results with the rest of the team. Then it is up to you to assign specific actions to each person to ensure the identified issues get fixed, and the business stays strong.
The audit should focus on finding problems that are not already known to exist, whether they are in the areas of customer service, IT security, expenses, compliance, or elsewhere. Always ensure you follow taxation laws and abide by the Department of Labor. Never cut corners with payroll either.
Conducting an internal audit can save you money in the long run by addressing problems now before they become larger or are subject to external audits later. Create a systematic approach that keeps your small business going strong.