Jen: This is the PKF Texas Entrepreneurs Playbook, I’m Jen Lemanski and I’m back once again with Kimberly Wood an Audit Senior Manager and one of our Approachable Advisors^TM here at PKF Texas. Kimberly, welcome back.

Kimberly: Thanks for having me,

Jen: We’ve consistently talked with you about transactions and things like that, and I know there may be some reticence on the part of like a smaller business to invest in an audit. Why should they go ahead and do that?

Kimberly: Yeah, so a lot of small businesses think that audits are unnecessary and expensive. Business owners don’t ever, they don’t find value in a financial statement audit, but the primary benefit of an audit is trust and reliability. And those are actually the key elements for evaluation of a company. Audits can also help identify and enhance a company’s accounting and internal control process. They help the company comply with generally accepted accounting principles and they help validate the financial data.

Jen: And is it something that could potentially, I mean, we can’t make any guarantees, but could it potentially strengthen their position when they’re looking for someone to purchase their business?

Kimberly: Oh, yes, of course, because that means they’re prepared for anything that may come up and then they’re on the accrual basis of accounting, which is what buyers are looking for.

Jen: Perfect. Sounds good. We’ll get you to come back and talk a little bit more about transaction work. Sound good?

Kimberly: Sounds good. Thanks.

Jen: This has been another thought leadership production brought to you by the PKF Texas – The Entrepreneurs Playbook. For more information about this and other topics, visit www.pkftexas.com. Tune in next week for another chapter.