Starting in this current tax year, the threshold for mandatory audits has been significantly increased.
Previously, companies with a £10.2 million turnover or assets worth £5.1 million were subject to mandatory auditing.
Now, only companies with a £15 million turnover or assets worth £7.5 million will be required to get audited.
This signals a major shift in the way business is conducted and a noticeable decrease in work for auditors if companies elect to avoid auditing.
If you are an auditor concerned about how to keep some of these clients around, we have the answers for you.
Is voluntary auditing good for businesses?
You are likely to already feel the benefits of auditing, but it can take some convincing to get your clients to see it from your perspective.
Academics Ann Vanstraelen and Caren Schelleman recently published research that evidenced the connection between audited businesses and their economic success.
Their work looked at businesses in the UK, USA, and South Korea and discovered a global connection between audits and business growth.
They demonstrated the ways in which audits place businesses in a stronger financial position by clarifying their records, reducing wasteful spending, lowering the rates of interest paid on loans, and mitigating fraud.
It may be worth praising the virtues of auditing to your clients who may now be considering skipping the audit with the relinquishing of the obligation.
If you want to increase your persuasive power, it might be time to utilise a system designed for greater effectiveness and utility.
Can automation help with the auditing process?
Now that the auditing space has become more competitive, you are going to want to utilise all the assets that are available to you.
Keeping on top of client emails is time-consuming and laborious, with a great risk of important information becoming lost or ignored.
Any of the businesses that now fall below the audit threshold will need to be convinced that auditing is in their best interests.
Using a secure, centralised platform can offer an effective solution as it can expedite and simplify the process of gathering information, thus making audits seem less daunting for clients.
Similarly, automation can be utilised to dispatch reminders instead of having staff manually follow up when seeking essential information.
The more streamlined and efficient the auditing process is, the more inclined your clients will be to voluntarily seek an audit even if they fall below the threshold.
Give your clients a reason to keep working with you and show them the value you provide as an auditor.
By using Glasscubes, you can ensure that the audit process is smooth and efficient for the client.
To keep competitive in a changing climate, book a demo with our team today.
