Benefits of Non Audited Services for Business Owners
When it comes to choosing between audited and non audited services, one of the primary advantages of non audited services is their affordability. While a good bookkeeper might be costly, they often come at a lower price point compared to certified public accountants (CPAs). A CPA has undergone a rigorous certification process, which means their expertise in handling a multitude of accounting scenarios is backed by formal education and professional standards. However, for many small and medium-sized enterprises, the expense of a CPA may not be necessary, leading many to opt for non audited services due to the cost savings they offer.
Understanding the Cost Factor
The primary benefit of non audited services is the financial advantage they provide. A good bookkeeper, regardless of their qualifications, can typically perform the necessary financial tasks at a lower cost than a CPA. This is particularly advantageous for businesses that operate on tight budgets, such as startups or small businesses. By choosing a non audited service, these businesses can cut down on unnecessary expenses without compromising the quality of their financial management.
Flexibility in Financial Management
Non audited services offer business owners a greater degree of financial flexibility. Unlike audited services, which often require adherence to specific standards and procedures, non audited services can be customized to fit the unique needs of a business. This means that if a small company operates in a niche market or has a unique business model, non audited services can be tailored to meet those specific requirements. For instance, if a consulting firm uses a non audited service, they can have their books kept in a way that aligns with the industry-specific regulations and contracts they work with, rather than being forced into a one-size-fits-all approach.
When to Use Audited Services
While non audited services offer significant benefits, there are situations where audited services are necessary. Generally, companies that are accountable to the public are required to have their financial statements audited. This includes companies that issue stocks and/or bonds, as well as banks and other financial institutions that are subject to regulatory oversight. Audited services ensure that the financial information is accurate and can be relied upon by stakeholders such as investors, creditors, and regulatory bodies.
Not All Businesses Need Audited Services
For partnerships and sole proprietor companies, the situation is different. While these businesses might not be legally required to have their financial statements audited, they may still benefit from the additional scrutiny that audited services provide. Having an independent audit can enhance the credibility of their financial statements, which can be beneficial for negotiating loans, attracting investors, or obtaining business licenses. However, if cost is a primary concern, non audited services can still deliver the necessary financial management without the added expense.
Conclusion
For business owners operating on a budget, non audited services can be a smart financial decision. They offer cost savings and flexibility, making them an attractive option for many small and medium-sized enterprises. While audited services provide additional assurance and are legally required for certain types of businesses, non audited services can be perfectly adequate for the needs of many. Understanding the specific requirements and benefits of each service type can help business owners make informed decisions that align with their financial goals and strategic priorities.