When businesses hear the term, it often causes concern and even fear at times. They fear that there might be something wrong with their organization that warrants a probe. On the other hand, some business owners believe that an internal audit is needed only in large, Fortune 500 companies. But, is an audit really “exclusive” for bigger business players?
Why an Internal Audit Matters to Companies Regardless of Size
As TannerCo.com would stress, an internal audit is more than just confirming that everything is shipshape. For smaller organizations, there are several reasons to perform an internal audit. They can gain a complete, definite understanding of how processes go, rather than just assuming how they work. Companies can also use an audit to look into problem areas, then use the information to devise improvements.
Smaller businesses have “no way to go but up.” The drive for expansion can subject such companies to drastic changes in complexity. In other words, an internal audit can help make the transition period easier, eliminating troubles along the way. Any organization in its earlier stages must begin laying the foundation for its long-term existence, and an audit helps achieve just that.
Some Notes for the Small Business Owner
Small businesses differ in one major thing from their bigger counterparts. The latter are often subject to rigorous sets of reporting standards (including mandatory audits), but not the former. Still, that doesn’t change the fact that size doesn’t matter when it comes to an internal audit. There’s no way of determining if a small business is fit for an expansion if there’s no information on its current state — one thing that an internal audit can provide.
An internal audit may seem like a luxury for small businesses, but it isn’t. It’s a critical piece to the expansion puzzle. Here’s a simple analogy to make sense of everything. Try imagining someone standing on the edge of a cliff, staring at the cliff face on the other side. Before he could successfully make the jump, the person needs to assess his current situation. “Do I have enough room to gather speed before jumping?” A successful leap would never be possible without a careful evaluation of his chances.; otherwise, he’ll never make it to the other side. The exact same thing goes for small businesses and their plans of expansion.