Starting a business in itself such a big feat. The effort that will have to be out in the business is unprecedented and the outcome may or may not be profitable. To have a start-up, you do not simply need the capital, but also the knowledge and the skill a businessman or a businesswoman needs to start and run his/her company. Along with the capital required, the owner must need a few other elements. Some of them lean on the legal side of the plane, where you have to register the company, get the appropriate license to run the business, check if the laws and the regulations are being followed by the new found company, and many other legal formalities. In this generation, however, it is relatively easy to have a startup.
What you most predominantly need is the internet. All you have to do it so create your domain and a few other formalities and then you would have a company in just a few hours, although the legal procedures might require a bit more time. So you have completed all the legal procedures and have a company now. You also start to generate some revenue and a little bit of profit, which is when you realise that you don’t have an accountant. Here are a few reasons to why learning to audit yourself is advantageous than hiring an auditor.
Prevention of Fraud
Since you do not have the knowledge to do the auditing yourself, you will probably hire an outsider, to do the job for you. The problem with this is that a majority of owners who do this, suffer a similar problem. A good percentage of these auditors commit fraud, which could be easily done for a good period of time, without suspicion. You would only notice the wrong happening once the amount of revenue starts decreasing or any other obvious display. This experienced small business accountant could earn a lifetime in just a small amount of time as a result of your carelessness.
Since this is a startup and the owner would not have a high amount of capital to invest on every little thing, it could be an added advantage to learn the ways to maintain a proper bookkeeping. It is also a requirement by the law to keep records of all the transaction that are taking place. It would also be helpful to handle your own tax rather than hiring a tax agent from Leichhardt to do it for you.These are some of the advantages of learning how to audit yourself, rather than hiring someone you have no history with. It could help you a lot and save you some money to do it yourself.