Year end is coming… and while it is tempting to put things off, we both know you will be just as busy come January, as you are now. So in case you need a little encouragement, here are three reasons to start getting ready for your year-end audit, now. Plus a checklist to help get your audit started on the right foot.
- Save time – Work under pressure is work prone to errors, taking more time to fix and redo
- Choices – If you start now, YOU will get to choose when and how to work on it. Waiting until the last minute often gets side tracked by other “urgent” items. No one likes staying up all night to finish a project that they put off.
- Save money – your audit team is super cool but they aren’t free.
Your auditor is cool, but really, do you want to spend one extra second with them? Why not go ahead and get your documents together now … ?
Let’s make your audit run like it’s on rails? Fast and smooth…
- Prepare requested documentation both at interim and after the fiscal year end. (Hint: have a look at last year’s request… these are likely to be very similar from year to year.)
- Get those documents prepared.
- Review last year’s final audit report and make a list of changes that will be needed for the current year, especially with regard to the footnotes.
- Start updating those now.
- Review last year’s client questionnaire and identify any changes that may have occurred.
- Begin updating now.
- Identify any change in accounting processes or operations. Document these changes.
- Create a list of any changes from the prior year.
- Identify any new revenue streams, and document the process with regard to those as well. How the revenue is generated, what is the process is for accounting for that revenue.
- Go on, write it down.
- Identify any new contracts, leases or agreements that went into place in the new year.
- Make a copy and put into your audit folder to share with your auditor.
Be sure to stay in frequent contact with your auditor, let them know of issues or any questions you may have. Our hope is to work as a team. The quicker we get the requested information, the quicker we can wrap up the audit.
So there you go. Let’s get audit ready!