Five ways to prepare for your annual audit

A little preparation before the auditors arrive saves time, reduces queries and helps you get your audited accounts on schedule.

An audit runs most smoothly when the finance team has done the groundwork. These five steps make the biggest difference.

1. Close the books properly. Post all year end journals, accruals and prepayments before fieldwork starts, and make sure the trial balance agrees to the ledgers.

2. Reconcile every bank account. Clear old reconciling items and keep the bank statements and confirmations on file.

3. Update the fixed asset register. Record additions and disposals, check that depreciation has been calculated consistently and confirm that the assets still exist.

4. Gather supporting documents. Invoices, contracts, loan agreements, board minutes and tax returns should be easy to find when they are requested.

5. Agree a timetable. Confirm dates with your auditors, name a contact person for queries and plan for key staff to be available.

If you would like help getting ready for this year, talk to our audit team.