In today’s highly competitive business environment, the drive for profitability and growth can be overwhelming. While these factors are vital for a business to survive, it is equally important that the right approach is taken to ensure ethical and legal obligations are being met.
Significantly, business experts and academics agree that ethically run businesses are far more likely to be successful in the long term.
Whitley Stimpson Director Laura Adkins said:
“Having an ethical approach goes right to the core of a business. Most firms will ensure they stay on the right side of the law but beyond ticking boxes it should go far beyond that into discretionary decisions such as values, codes of conduct and establishing a beneficial culture. It starts at the top with boardroom strategies and covers sales techniques and accounting practices along with how employees are treated.”
Significantly, customers are now making more informed decisions about which businesses to use thanks to greater transparency of information and a growing desire to make the best environmental and socially responsible choices.
Businesses need to earn their trust as well as that of investors while employees need to be retained to build a sound reputation that will produce sustainable growth.
One way of helping ensure an ethical approach is being adopted is through the implementation of a thorough, independent business audit. These provide scrutiny of your income and cash flow statements along with your balance sheet. They can make your business more efficient, identify opportunities for development and help with continuous improvement and growth as well as ensuring compliance with policies and regulations.
“Our audit process provides a thorough, inside out analysis of a business and highlights areas of financial weakness as well as areas of risk such as fraud,” continued Laura.
“Not only does it ensure businesses and their staff are abiding by the law, but it also offers suggestions about how to improve performance through the use of alternative approaches. Any company wanting to maintain ethical practices can use the audit process to ensure they are being implemented from top to bottom.”
UK limited companies are subject to an external audit if they have at least two of the following:
- Turnover of more than £15m
- A balance sheet total of more than £7.5m
- More than 50 employees
These thresholds, set to take effect in April 2025, aim to simplify reporting requirements and reduce the administrative burden on companies by adjusting the size thresholds for micro, small and medium-sized entities.
Whitley Stimpson can also help with non-statutory audits, including compilation reports and offer advice and solutions for financial reporting as well as providing ongoing support to identify tax opportunities.
Laura added:
“Audits provide a guarantee that a company’s ethics are sound and provide a vote of confidence for employees, investors and, above all, customers to ensure the long-term success of the business.”
For more information contact Laura on lauraa@whitleystimpson.co.uk