What audit-ready books look like

An audit goes smoothly when the auditor can trace every balance to support quickly. That depends on how the books are kept during the year, not on a rush at year end.

The habits that matter

• Proper narration. Every entry explains what it is and why, so the auditor does not need to ask.
• Monthly reconciliations. Bank, customer, vendor and intercompany balances agree every month.
• Period-end accounting. Accruals, prepayments and provisions recorded consistently.
• A complete asset register. Additions, disposals and depreciation reconciled to the ledger.
• Documents attached. Invoices and contracts linked to the entries they support.

At year end

With these habits, year end is mostly about preparing schedules: lead schedules for each balance, ageing reports, asset roll-forwards and confirmations. Auditor queries become fewer and faster to answer.