Let’s be honest, audit isn’t exactly winning popularity contests! Despite the efforts of the team at BHP to shift perceptions among the businesses we work with, it’s easy to see why people are sceptical. High-profile audit failures over the past decade continue to make headlines, and some audit practices still seem stuck in the last century.
The danger in holding this one-sided view, however, is that we only ever hear about the negative stories. Nobody shouts about the audits that go well, and there are plenty of those. As a result, many business owners understandably start to question the value of audit, particularly when it’s a legal requirement. And the idea of voluntarily choosing to have an audit? “Why on earth would you do that?” I can hear some of you shouting already!
Well, the purpose of this article is to explain why that might not be madness at all. In fact, in the right circumstances, an audit can form a powerful part of a business’s overall strategy, helping it to thrive, build trust, and stay on course for its ultimate goals.
So what possible reasons are there?
- Investor and stakeholder confidence
Investors are backing the founders and the management team to deliver on what they’ve promised. Significant sums of funding are provided to help high-potential businesses expand and realise their ambitions. With such investment at stake, how those funds are being spent and how the business is performing become critical barometers. An audit provides a level of reassurance that financial information is robust and that key decisions are being made on a sound footing. - Customer and supplier confidence
In competitive markets, trust can be a huge differentiator. Many customers—particularly those in regulated industries or large corporates—expect assurance that their suppliers are well-run and financially sound. Likewise, key suppliers may be more willing to extend credit terms, prioritise deliveries, or enter into longer-term contracts if they have confidence in your financial stability. An audit adds credibility to your financial statements, reassuring both customers and suppliers that you’re a stable and trustworthy business partner. - Attracting and retaining staff
Talented individuals want to work for organisations that are well-governed and professionally managed. A clear audit trail and external validation of your financials can help to foster a culture of transparency and accountability. This builds trust internally and signals to potential recruits that the business takes its responsibilities seriously.
In many businesses, staff are more than just employees—they’re stakeholders too. Incentive schemes such as Enterprise Management Incentives (EMIs) mean that team members have a direct, vested interest in the long-term success and valuation of the business. Regular audits help provide assurance that the company is on solid financial ground, reinforcing staff confidence in their future rewards and the overall direction of the business.
- Managing growing pains
Fast-growing businesses often experience a degree of chaos—rapid hiring, evolving processes, and stretched systems. These are natural symptoms of success, but they can also expose gaps and weaknesses. An audit can help identify issues early, providing the insight and discipline needed to support sustainable growth and avoid costly mistakes. - Preparing for future transactions
Whether you’re planning for a sale, investment round, or public listing, clean financials and a track record of good governance are essential. Buyers and investors will scrutinise your numbers. Having audited accounts in place can streamline due diligence, avoid nasty surprises, and potentially enhance the valuation of your business.
A strategic tool, not just a tick-box exercise
Ultimately, an audit shouldn’t be viewed as just another compliance task. When approached proactively, it can help businesses build confidence across investors, customers, staff, and within the leadership team itself. It’s about making sure your business is future-ready and resilient.
So maybe it’s time to rewrite the narrative. Not all audits are created equal. And when done well, they don’t just tell you what happened; they help shape what happens next.
If you would like to know more about how BHP could support your business please get in touch.
