Retaining greater control over your business entails performing certain procedures. A business audit trail is an essential process in this regard, as it can allow you to meticulously track your financial accounts. With more than two decades of experience, the accountants at SDK CPAs recognize the value of thorough record keeping. That’s why they offer the following information to their Minneapolis, MN, clients, which highlights the importance of a comprehensive audit trail.
What Is a Business Audit Trail?
Transparency is a key concern in the world of business. A company that offers a clear view of how it operates provides reassurance to associates and clients that high standards are a goal. An audit trail does just that, whether you’re running a five-star restaurant or manufacturing computer components.
Not only are audit trails important to show your business operates ethically, but they can also be beneficial during an audit. A business doesn’t necessarily need to be suspected of wrongdoing for the IRS to request an audit. In fact, a company may be randomly selected, and proper record keeping will make the process a lot less stressful because records will be clear and concise.
What Should Be Included?
The contents of an audit trail can vary greatly depending on several factors. In general, it will include a sequence of events from start to finish, as well as basic information like dates, times, and information on users or others who have access to records. One example is a record of financial transactions. This can feature a wide range of information, such as payroll data, expenses for operating, invoices, and any other financial and accounting information. Customer communications may also be logged. This would include records of email and paper interactions along with call logs and information on how any disputes were dealt with.
It’s essential to have professional assistance on your side, like that provided by SDK CPAs. When it comes to creating a business audit trail for your company, they can offer guidance on tracking methodology and how often logs should be retained. Want more information on all that this Minneapolis accounting firm can do for you? Visit their website to see the complete listing of services. You can also call (612) 332-5500 to speak with someone about your business’s specific needs.