How an Independent Auditor Can Improve Your Business

When you start a business, you invest your time, effort and capital in order to make it successful. This is why you should see to it that you perform all the necessary procedures to ensure that your business will stay afloat. One way to do so is to hire an auditor.

What Do Auditors Do?

According to Deloitte’s January 2017 Report on Taxation and Investments in Thailand, the Thai Accounting Professions Act mandate that audits should be performed by a certified public accountant (CPA). Tax Accountants in Pattaya are tasked with the important role of assessing andvalidating the correctness of financial reports. Businesses who are to undergo auditing should prepare financial statements in accordance with the Thai Financial Reporting Standards (TFRS). In general, auditors compare the statement to the financial status claimed by the organisation. They also inspect these documents to see if the business complies with taxation laws.

Why Hire an Independent Auditor?

An independent or a third-party auditor is one who performs auditing processes for an organisation, he or she is not connected to. Because the auditor is not affiliated with the organisation, they are able to look at the financial reports with fresh eyes. This allows for a more objective assessment as the professional is not familiar with the financial records in any way. Ultimately, this avoids any accusations of conflict of interest.

3 Ways These Experts Help

  • Compliance with Laws

Businesses have the responsibility of filing their taxes accordingly. You need to make sure that you have the right documentation to show that income and outflow of your finances are recorded properly, meticulously and accurately.

Taxable income includes profits and passive income such as dividends, royalties and interests.Keep in mind that these will factor in the computation of the taxes your business has to pay. The best way to keep track of these is to hire an auditor during the tax season. This ensures that your finances are expertly assessed by a specialist following auditing standards.

  • Efficient Use of Resources

Another benefit of hiring these accountants is that they can identify issues with your accounting procedures. It can also reveal unproductive practices that can lead to losses. Should they discover any issue and inefficiencies with your records, you will be able to address any problems. This way, you can improve your system and minimise or even eliminate the occurrence of this concern in the future.

  • Spotting Fraudulent Transactions

Embezzlement is one of the most detrimental fraudulent practices that can harm your business. This can happen through misappropriation of funds. Whilst embezzlers might try to conceal these frauds, you have a higher chance of uncovering such practices with the help of the trained and analytic eye of an auditor.

With the resources you invested for your business, it is only right to comply with government mandated standards in auditing. By hiring an independent auditor, you can ensure that your business operates to its full potential, lawfully and efficiently.