Did you know that only 1 in 100 businesses is audited each year?

When was the last time your business did a business audit? For many businesses, it’s been far too long. The result is that they’re flying blind when it comes to their business.

If your company has fallen into such bad habits, then you need an intervention. The perfect way to help your company is to do a business audit.

Not sure how to get started? Keep reading for everything you should know about business audits!

The Different Types of Business Audits

There are many different types of audits for a big and small business owner, and each has its own purpose. Here is a brief overview of the most common types of audits:

Financial Audit

Financial audits are the most common type of business audit. They involve a review of the financial statements of a company to ensure that they are accurate and follow generally accepted accounting principles (GAAP).

Operational Audits

Operational audits involve a review of a company’s internal processes and procedures. The goal of an operational audit is to identify potential areas of improvement and make recommendations for how to optimize operations.

Compliance Audits

Compliance audits are always conducted to ensure that a company is complying with applicable laws and regulations. These audits are processed by government agencies or by third-party organizations.

Information Technology Audits

Information technology audits assess the adequacy of a company’s IT infrastructure and security procedures. The goal of an IT audit is to ensure that information assets are adequately protected from potential threats.

Environmental Audits

Environmental audits are always conducted to assess a company’s compliance with environmental regulations. These audits are by government agencies or by third-party organizations.

Quality Audits

Quality audits are to assess whether a company’s products or services meet specified quality standards. These audits are often processed by third-party organizations.

Social Audits

Social audits assess a company’s compliance with social responsibility standards. These audits are often done by third-party organizations.

Why do You Need to Complete a Business Audit?

As a business owner, you are likely already aware of the many benefits of completing a business audit. However, you may not be aware of some of the situations in which a business audit can be incredibly helpful.

Here are situations in which you might need to complete a business audit:

When You’re Considering Accepting Investment

If you’re in the process of seeking investment from venture capitalists or other investors, they will likely require that you complete a business audit.

They want to see that your business is in good financial shape and that you have adequate systems and controls in place. Completing a business audit will give you the chance to show them that you’re a responsible and professional business owner.

2. When You’re Applying for a Loan

When you apply for a loan, the lender will want to see that your business is in good financial health. A business audit will give them the peace of mind they need to feel confident in lending you money.

3. When You’re Having Financial Difficulties

If your business is experiencing financial difficulties, a business audit can help you identify the root of the problem. Once you know the cause of the financial difficulties, you can put a plan in place to resolve the issue.

4. When You’re Making Major Changes to Your Business

If you’re making major changes to your business, such as expanding your product line or opening new locations, a business audit can help you ensure that you have the finances in place to support the changes.

It can also help you identify any areas of your business that need improvement.

Preparing for Your Business Audit

When most people think of business audits, they picture an IRS agent going through their records with a fine-toothed comb.

So, audits are always processed by different types of organizations for different reasons. Even if you’re to be audited by a government agency or a private company, it’s important to always prepare.

Here are a few tips to help you get ready for your business audit:

Know Why You’re Being Audited

The first step in preparing for an audit is to find out why it’s being targeted for audit.

Is it a routine audit or are there specific concerns that have been raised? If there are specific concerns, make sure you understand what they are so you can address them head-on.

Gather Your Records

No matter the reason for the audit, you’ll need to have your records in order. This includes financial statements, receipts, invoices, contracts, and any other documentation that relates to your business.

If you’re organized throughout the year, this shouldn’t be a problem. But if you tend to let things pile up, start going through your records now so you’re not scrambling at the last minute.

Choose Your Audit Team

If you have a team of accountants or other professionals who help you with your finances, you’ll need to decide who will be working on the audit. You may also need to hire outside help, depending on the scope of the audit.

Choose a team that you’re confident in and that you feel comfortable working with. An Office 365 consultant will help with smart management.

Cooperate With the Auditor

The auditor is doing their job, so there’s no need to be adversarial. Cooperate with the auditor and answer any questions honestly. This will help the process go more smoothly and will likely result in a better outcome.

Review the Results

Once the audit is complete, review the results carefully. If you don’t agree with the findings, you have the right to appeal. But if everything looks good, you can breathe a sigh of relief and move on.

What to Expect During a Business Audit

Gather all of the relevant financial documents, including your tax returns, bank statements, and invoices. The auditor will likely request additional information as well, so it’s important to be responsive.

The audit process can be lengthy, so it’s important to be patient and cooperative. The auditor will likely ask questions about your business operations and finances. It’s important, to be honest, and upfront in your responses.

After the audit is complete, the auditor will provide a report with their findings. If there are any areas of concern, you’ll have the opportunity to address them. 

How to Reduce the Likelihood of a Business Audit

There are a number of reasons your business could be selected for an audit. The IRS could compare your tax return to others in your industry, or to similar businesses in your area.

Your return could be selected randomly. Or, the IRS might question some items on your return, which could trigger a closer look.

The best way to avoid an audit is to take care when preparing your tax return. Be sure to include all required information and documents. If you have questions, ask your tax advisor.

Here are some additional tips to help you reduce the likelihood of a business audit:

Keep Good Records

The IRS can audit your business for any tax year. That’s why it’s important to keep good records for at least three years. Store your records in a safe place, such as a fireproof box or off-site storage.

Use Accounting Software

If you haven’t already, sign up for accounting software. This will help you keep track of your income and expenses. Be sure to reconcile your bank and credit card statements each month.

File Electronically

If you file your taxes electronically, the IRS is less likely to make mistakes. That’s because the IRS’s computer can catch errors that you might miss. The IRS also has a record of your return, so you can’t claim you never received it if you’re selected for an audit.

Don’t Forget To File

If you forget to file your taxes, the IRS can penalize you. The failure-to-file penalty is 5% of the unpaid tax for each month, up to 25%. So, it’s important to file on time, even if you can’t pay the full amount owed.

Pay Your Taxes on Time

If you don’t pay your taxes on time, you’ll be charged interest and penalties. The interest rate is currently 5% per year. The late-payment penalty is 0.5% of the unpaid tax for each month, up to 25%.

E-File Your Payroll Tax Returns

The IRS offers a free online service for businesses to file their payroll tax returns. This service is called e-file for Businesses. You can use it to file Form 941, Employer’s Quarterly Federal Tax Return.

Deposit Taxes When Due

You’re required to withhold federal income tax, Social Security tax, and Medicare tax from their paychecks. You then need to deposit these taxes with the IRS.

If you don’t deposit the taxes when due, you’ll be charged interest and penalties. The interest rate is currently 5% per year. The late-payment penalty is 2% of the unpaid tax for each month, up to 25%.

File Quarterly Tax Returns

If you’re self-employed, you’re required to file quarterly tax returns. This helps you spread out your tax liability over the year. It also helps you avoid a large tax bill—and potential penalties—at the end of the year.

Ready For A Business Audit?

Now that you know the ins and outs of completing a business audit, put your new skills to the test. Use this guide to streamline your next audit and make the process simpler than ever.

Find this post helpful? Check out the rest of our blog for more topics.

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Today, consumers are constantly exposed to various trademarks. Many of these are commonly used to describe products such as Band-aid, Super-glue, r4Chapstick, and Jacuzzi. Because of this, they tend to regard these as the actual products rather than the brand names. What are the benefits of intellectual property, and how do you protect your intellectual property?

Most of the world’s leading companies were not born with the idea of a monopoly between their products and brands. Instead, they were able to create their unique concepts and trademarks. This raises the question of how these types of registrations benefit startups and how they can help them succeed in the long run.

7 Reasons Trademarks are Important

1. Creates Brand Recognition

Getting a trademark is a vital step for any startup as it allows it to protect its brand and prevent its competitors from stealing it. Registering a company name makes your products and services more distinctive and helps prevent others from doing the same.

2. Creates Potential Employee Incentives

Having a good reputation is important for a startup as it allows it to attract and retain more potential employees. This ensures that the company can grow and provide its customers with the best possible service. Having a strong brand name can also help a company secure a loan.

3. Helps Avert Legal Issues

Without a trademark, a company can be sued by other companies that have registered the same name, design, or slogan for the same product or service. This can affect a company’s operations and brand identity. A startup can protect its intellectual property by registering a trademark.

4. Trademarks Last Forever

A trademark is useful for a startup as it allows it to protect its intellectual property and prevent others from using its name and services without violating its rights. For instance, if a company wants to use the same name and brand in different domains, it should thoroughly research the registration process to make sure that it doesn’t get rejected.

It’s important to hire a good intellectual property service provider as they can help you perform a trademark name search and begin the registration. This type of company can provide you with the necessary guidance and support to ensure that your application is approved.

5. It’s a Company Asset

A trademark can help boost a startup’s value as it allows it to grow and attract more potential customers. It can also help it develop effective marketing strategies to increase brand recognition and draw in more potential customers. 8ii9

Once a company has attainep8pd a positiv9\ppe reputation, its consumers will associate its trademark with how it’s running. Trademarks are perfect for companies wanting to diversify their services or products, offer franchising options, and attain more value when putting the business for sale.

6. Offers a Sense of Autonomy

It’s no secret that the market is saturated with various types of products and services. Being able to use a trademark can help a startup navigate through this challenging environment. After all, being the littlest fish in a big pond can be very hard for a startup. Having a strong brand name can help a company maintain its good standing. Being able to use a trademark can help a startup cushion the blows that come its way as it allows it to continue to grow and attract more potential customers.

7. Lets People Know You’re Serious

It’s no secret that trademarks can lend credibility to a company’s name. For instance, if Disney didn’t use the same name or brand, imagine the legal skirmishes that would result. People would be fighting for the rights to their brand, and the empire that surrounds it would be worth millions of dollars.

Final Thoughts

Having a strong brand name is important for a startup as it can help it protect its intellectual property and prevent others from using its name and services. It should be secured at the very beginning to ensure that it can gain an advantage over its competitors.

A trademark can help boost a startup’s value as it allows it to grow and attract more potential customers. It can also help it develop effective marketing strategies to increase brand recognition and continue to grow.

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Looking for a way to have a great time and better your overall health at the same time?

You might want to try picking up surfing. Spending time out in the water can give you a good physical workout, help to relieve stress, and benefit your overall mental health. 

If you’re new to surfing, there are a few things you’ll need to get familiar with to get started. For one, you’ll want to know about the different types of surfboards out there. 

Which should you get if you’re planning on hitting the waves sometime in the near future? What do you need to know about the best surfboards and the variety that might be right for someone like you? 

Read on and we’ll walk you through what you need to know.

Common Types of Surfboards

There are a few different types of surfboards out there that you’ll need to choose between when it comes to making a purchase.

The archetypal surfboard, and the one you likely have in mind when you think of surfing, is the longboard. As the name implies, these are surfboards that are longer in length than some other options.

The standard longboard is generally over nine feet in length. They usually have a blunt nose and are quite wide across. They’re also highly buoyant, making them easier to handle, paddle, and enter waves on. 

For this reason, they’re a great choice for novice surfers. 

There are also short boards, which burst onto the scene some years after the more traditional longboard. While these boards are slightly more challenging to get used to, they offer a lot more flexibility when actually surfing waves.

For this reason, they are easily the most popular surfboard type available today. Many people across the surfing industry use them.

There are also more specific, specialized boards out there: fish boards, gun, and malibu boards. These all offer slight variations that benefit different styles of surfing.

What Surfboard is Right For You?

If you’re going surfing, which board should you have in your garage, ready to go? It all depends on your own level of experience, comfort, and budget.

Most new surfers will want to start with either a standard short or longboard. There’s no point in getting a highly specialized board if you’re just starting out, as you won’t know what your preferences are yet, and if these boards match those. 

The more time you spend surfing, the better sense you’ll get of what you might want your next board to be like. By the time next year’s International Surfing Day comes around, you’ll be a master of your art.

You can learn more about this celebration and get some further inspiration for your surfing goals.

Best Surfboards on the Market

If you’re looking to hit the waves sometime in the near future, you’ll want to get familiar with the best types of surfboards out there. The above can help you to understand the basics when it comes to surfboards, and how to land on what will be right for you.

Need more sporting and entertainment advice and information? Keep scrolling our blog for more.

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