Choosing a professional accountant for a small business is one of the most difficult steps. Realizing that how tight small businesses are with their finances, they aren’t in the position to hire someone incompetent and unprofessional.
When you are running an established business, regardless of how small our big it is, it’s always constructive to get an unbiased, third party review about your business functions and operations. When it comes to the reporting of financial matters, businesses often hire external auditors to review the company’s finances and perform an audit of all the financial statements. They determine how fair and justified the company’s accounting and financing are to back their opinions after thorough evaluations.
The director of a free medical clinic in Columbia, SC, said the first 3 months’ revenue is allocated to his financial audit expense. That is 25% of a nonprofit's shoe-string budget just to open the doors. The scenario highlights the perils of making a wrong auditing decision, as most small-to medium-sized companies cannot afford to duplicate the expense.