Does Your Business Need An Audit?

Updated: Jun 21, 2021

You’re probably thinking – Ya, like a hole in the head! Don’t worry, I don’t work for the IRS. When I’m referring to an audit, I’m not talking about your finances in particular, I’m thinking about how your business functions in its entirety.

How do you know if you need to make the investment necessary for an audit?

As a Solopreneur or small business owner, you likely find yourself filling every job function and doing every business task that needs to get done. You may think you need a Virtual Assistant, and perhaps, you’ve even hired one. You may have someone handling your social media, your tech, maybe even a bookkeeper if you’re not that versed in the numbers.

Things get done but there's no method to the madness.

Are all facets of your business guided by an overall strategic plan or are you growing organically and continuously chasing the next opportunity while trying to fulfill the obligations of the clients you have?

Have you thought about how all the tasks work together to keep your day-to-day business operations functioning?

Do you have a Digital Marketing Plan or do you just make sure you post “stuff” regularly on Instagram and LinkedIn?

Do you run online programs?

Do you have a process or run by the seat of your pants?

Have you thought about how all the tasks work together to keep your day-to-day business operations functioning?

What exactly is a Business Audit?

A business audit is a complete review of the business's current operations, finances, social media presence, on-boarding process for clients and employees, project management systems, and processes. It also includes a market review of the competitive landscape.

It may sound daunting however, it can be an invaluable tool in determining what needs to change so that your business can succeed. A good audit can be a great starting point for laying out the strategy and roadmap to get your business where you want it to go.

Most people, including many small business owners, are not ready or don’t know how to do an audit of their own company. It's very hard to take a look at your own business from the inside. Not only will it be difficult to be objective, but the process of identifying all the gaps, inefficiencies, and opportunities to grow takes time - one of your most valuable resources! It's a lot easier for an outsider to see what needs improvement because they are objective with no emotional attachment to their recommendations.

How do you know if you need to make the investment necessary for an audit?

When I start working with clients, the first thing I ask them to do is to write down every single thing they do for their business. From ordering office supplies, to invoicing clients, to selling and delivering their work product.

Then I ask them to take a step back and review their list and prioritize. Once you know what the most important functions are then we can start to figure out whether those processes could be functioning more effectively.

What's next? Just because something is of utmost priority, doesn't necessarily mean that you should be doing it. Do you do your own taxes?

What often happens in this process is that the problem you thought you wanted to solve for - not enough time to get everything done - is not the problem you actually have.

One client that hired me at the beginning of the pandemic asked me to help her find a good platform to create an online course for her business. When I started diving deeper and learning more about her business, it became very clear that what was needed was to take a step back and look at what business she really wanted to be in and come up with a strategy and plan. Turns out she never really needed the online course and was able to find clients after becoming clearer and more focused on her existing products.

We also look at what's working well. I had another client who found posting to social media therapeutic at the end of the day. She liked to unwind by creating graphics and posts and posting them herself. She was so busy that most days she didn't have time for bathroom breaks, however, this was one task she didn't want to give up.

As the owner of a company, it's understandable that you want to do everything yourself. Putting in the right infrastructure will allow you grow and scale with ease when it becomes impossible for one person to complete all tasks.

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