Frequency of Internal audit can be decided as per your needs. These can be done either quarterly, half-yearly or annually. After certain age it is advisable for all persons to visit a doctor for a general health check-up. Similarly it is recommended to have one’s business reviewed by an experienced accountant regularly.
A business-owner must know whether his resources are being used in an optimum manner or not, from the senior accountant. He also may like to know if his business is going in the direction of his vision, whether he is following the correct strategy to face the market risks and competition.
The accounts should be reviewed quarterly generally to meet below objectives:
- To take timely decisions to steer the ship of your business in the right direction
- To identify & measure key-results that will help in assessing health of the business
- To assess the daily-cash/working-capital requirements for future needs
- To ensure that commitments given are honored and business standings remain respectable
- To evaluate growth prospects to match with the vision of the business
- To assess if each employee is efficiently contributing to the profits/objectives of the business
- To assess the business is having correct product/service mix
- To assess that customers are happy and remain loyal to business’s products/services
- To assess that stakeholders interests are being taken care
- To assess that Statutory payments are being made in time
- To assess that overheads are controlled and are minimum
- To provide feedback to owner that his capital invested is growing or getting reduced
To have such assessments every quarterly about one’s business from experts accountants saves many hard times a business may have to face. Chances of business sustainability or growth are better, when business is regularly evaluated by competent and experienced accountants.