There are countless businesses that are up and running worldwide, and new ones continue to crop up on a regular basis. Once you have gone through the tedious tasks of setting up, there are other internal factors you will need to look at setting in place so that your business is not in danger of getting into legal trouble. Any company big or small has an effect on the economy and their operations affects everyone from stakeholders to the general public. They must thereby adhere to all laws that are in place governing fair operation. As such, businesses are all required to comply with certain protocols.
PURPOSE OF AN AUDIT FIRM
One of the main bodies a new company must look at establishing, is an audit firm. Businesses deal with money that goes back and forth and they need to be held accountable for their transactions. This is where an audit firm comes in handy as they ensure the company follows legal obligations and are reporting their true financial standing. They are also able to fish out any discrepancies and fraud and have the power to hold the owner liable and even shut the company down if they have enough reasons to do so.
Perhaps the most important characteristic that is needed here to ensure clean and accurate information is to ensure this firm is unbiased by the company or in any other way. They are responsible for acting as an independent body, whose job is to purely report in the numbers as they are. Aside from this, auditors are also responsible for easing the tax burden of large companies that bring in large amounts of profits as they bear a heavy tax burden. In compliance with taxation laws, auditors are also able to provide advice and assist companies with taxes.
WHAT TO LOOK FOR
When recruiting an audit firm, a company can either opt for a team of auditors within the company if they have the means to do so, or they can also hire an outside contractor. Most choose the second option as it ensures transparency in their findings and is more accepted by third parties. When hiring an outside audit firm, strong ethics in terms of confidentiality and solid decision-making as well as considerable experience in the area are key factors in a reliable firm. Aside from this, an excellent reputation will also help you in making your auditor decisions, check this incorporation in HK.
MAKING THE DECISION
As a company, this is not something you can avoid. It is also better to put in this effort at the start than have to pay hefty fines for tax evasion or non-compliance with the law. Sometimes, it can even result in jail time and closure of the company if the situation is particularly dire and fraud is involved. This can tarnish not only the brand, but also your name as an individual especially if your business is suitably well-known. Reading up between an in-house auditing firm and outside auditing firm will help you make the distinctions between each thereby choosing the most suitable option for you.