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Without accounting business automatically dies. This means that, not only will it be hard for you to determine the robustness of your cash flow, but also it will definitely mean that you will rub shoulders with the CRA, and they are especially stern and objective with businesses that produce incorrect entries come tax seasons.
Why is auditing such a pain area then?
Hiring a private auditor
Owners of business often find themselves getting a private auditor as a way of keeping their business financial aspect in check and to show that they comply with the rules. Although that’s quite alright, it becomes tricky when a small business, having scarce funds and workers goes ahead to hire one. This could easily result in problems rather than provide solutions.
Because of lack of clear structures that enhance the relationship between owners and auditors, business owners end up getting inadequately trained or badly motivated auditors. It greatly pains owners to have to pay auditors, especially when they don’t even manage them, and worse, they can’t even offer bookkeeping that can actually help their small businesses to grow.
Not an enjoyable task
Auditing is not loved by everyone, in fact, it’s one of the tasks that most business owners dislike doing. A fact is that, once you hate the job, you tend to do it so clumsily and shoddily, and this is the reason why it becomes such a tedious and pain area for most if not all.
Bookkeeping work is so repetitive
If you are an owner who doesn’t have patience, you are so unlucky because auditing is an exhausting job that constantly requires repetitive action. It will not require you to do it once or twice, it will be an everyday job that you will perform for the entire time your business will be operational.
Need for consistency
Consistency is necessary for a smooth experience. To run a successful business you must be willing to constantly dedicate your time, energy and know-how to updating information in your books. This is often not the case with all small business owners. At times you miss to do so and such days matter the most because a couple of missed updates will lead to a tedious bookkeeping process that’s dreadful and cumbersome.
So is outsourcing the solution?
Though outsourcing may not be an alternative in your business, it is very suitable for administrative functions such as auditing and accounting. The greatest part about outsourcing the bookkeeping task is that you don’t get to do a thing. Everything is handled by the hired company, from the coaching, hiring and even supervision of workers who will carry out the bookkeeping work for you.
To add to that, you can leave the current company when they fail to perform to your expectations and move on to hiring a better one. Firing and retraining isn’t necessary when you outsource all accounting and you should definitely expect to receive some qualified auditors when you choose this option.
The success of your business depends on the effort and attitude you put into financial matters. You can also get assistance to avoid trouble and failure.