A litmus test for financial well-being

Every business should have controls to ensure good records and accurate financial reporting. Ebert Hyman explains how an internal audit can help small private practice businesses assess the suitability and accuracy of their internal controls.

If you run a small business, you are likely to be exempt by HM Rev­enue and Customs (HMRC) from needing to audit your annual limited company accounts.

This said, I would advise you think carefully about introducing some basic controls to help ensure good records and accurate financial reporting.

The size, diversity and complexity of your business are all factors to consider in deciding on action. You may be in complete control or you may be relying on others such as a secretary or bookkeeper to ensure that records are kept and everything is declared.