Now the autumn is on for real – but what did the auditor say this spring? A good idea this year is to think about how the business can be improved and to book a start-up meeting with your accountant.
Autumn is often a good time for reflection and planning for the coming year and the upcoming final revision. When the audit is complete, the auditor (usually) and the company management go through it during a so-called final audit. In addition to highlighting the audit report, the auditor can report on issues that are not sufficiently significant to be noted in the audit report, but which are nevertheless worthy of discussion. What works well and what can be improved?
Plan ahead at the turn of the year
It is not always easy to remember what the auditor actually said. Then it may be good to book a start-up meeting and to freshen up the memory already, but perhaps above all talk about future issues and plan for the turn of the year. The agenda at a start-up meeting is, of course, individual and is based on your company’s and your industry’s challenges, but there are still some issues that are usually always discussed, because they are the cornerstones of all business.
Business is based on profitability. During this point, the auditor and the entrepreneur discuss issues such as pricing, product mix, cost savings, investments etc. The auditor is usually able to identify areas that can be improved. One question that always leads to discussions is: Do you keep track of where the company makes money?
In addition to profitability issues, liquidity (the company’s ability to pay) is also a hot topic. Capital tied up in other assets such as machinery, equipment and inventories can sometimes mean that the money does not seem to match the good result. It may also be that the company has too long credit times for customers and / or for short credit times from suppliers which means that the money does not get into the account on time.
The auditor often goes through the company’s routines, where there can usually be opportunities for improvement. It can be about reviewing steps in sales or purchasing routines. It can also be about purely administrative measures such as handling taxes / fees.
The owners of a company are often well acquainted with issues related to the industry and competitors. During the final audit, we talk about issues such as legislation, industry, interest rates and currencies that can affect the company. Businesses often expect us as auditors to provide information about what is happening, or may happen, in the outside world.
How much money the owners will eventually receive in the wallet is always a topic that usually pops up during the start-up meeting. Here are many options to meet the owner’s return requirements. The auditors tend to be a valuable board.