The Bookkeeper’s Role in a Business Audit: What to Expect

May 14, 2025

When most people hear the word audit, the first reaction is usually stress. But audits are not always a bad thing. In fact, they can be a valuable opportunity to make sure everything in your business is on track. Whether the audit is internal, external, or tax-related, one of the most important people involved is your bookkeeper.

A good bookkeeper does much more than just “keep the books.” During an audit, they are your front line of support. Here’s a closer look at what to expect from a bookkeeper during the audit process and why their role is so important.

1. Organizing and Preparing Financial Records

Before the audit even begins, a bookkeeper ensures that your financial records are accurate and complete. This includes double-checking entries, reconciling bank and credit card accounts, and making sure all supporting documentation is in place. A well-prepared set of books sets the foundation for a smooth audit.

The bookkeeper will make sure that:

All transactions are properly recorded and categorized

Bank statements and financial records are reconciled

Payroll records are up-to-date and accurate

Receipts, invoices, and supporting documents are stored and accessible

Reports such as the general ledger, trial balance, income statement, and balance sheet are current and accurate

When these documents are ready and organized ahead of time, the audit process moves faster and with fewer disruptions.

2. Assisting in Gathering and Submitting Audit Documents

One of the auditor’s first requests will be documentation. This could include financial reports, receipts, tax filings, loan records, payroll data, and more. A bookkeeper knows exactly where to find these items and can submit them in a format the auditor can work with easily.

This not only saves time but also shows the auditor that the business is well-managed and transparent with its financial information.

3. Answering Questions and Clarifying Transactions

During the audit, auditors often flag transactions or areas they want to examine more closely. They may have questions about why a transaction occurred, how something was recorded, or what certain entries represent.

The bookkeeper is the person who can explain:

The purpose of specific transactions

The reasoning behind account classifications

Any adjustments or corrections that were made

How certain business expenses were tracked or categorized

By answering these questions clearly and confidently, the bookkeeper helps prevent misunderstandings and keeps the audit moving in a positive direction.

4. Identifying and Correcting Errors Early

Sometimes small errors or inconsistencies show up during audit preparation. A skilled bookkeeper can spot and correct these issues before they become serious concerns. This could involve correcting entries, providing missing receipts, or adjusting account balances.

Addressing these small issues early reflects well on your business and can reduce the chances of penalties, delays, or deeper scrutiny.

5. Maintaining Communication and Reducing Stress

Audits can be overwhelming, especially for business owners who are not used to dealing with financial reports or compliance checks. A bookkeeper acts as a point of contact between the business and the auditor, handling many of the back-and-forth questions and follow-ups.

This allows the business owner to stay focused while knowing that the financial side is being handled professionally. The bookkeeper helps ensure the business remains calm, confident, and in control throughout the process.

6. Supporting the Business Beyond the Audit

Even after the audit is complete, a good bookkeeper can provide insights into how to strengthen financial systems, improve recordkeeping, and stay prepared for future audits. Their feedback can help you avoid similar issues in the future and make your financial practices more efficient and compliant.

Conclusion

Audits may feel stressful at first, but they don’t have to be. With an experienced bookkeeper on your side, the process becomes much more manageable. From preparing documents to communicating with auditors and fixing issues early, a bookkeeper plays a central role in keeping everything on track.

How Accredited Bookkeeping Can Support Your Business

At Accredited Bookkeeping, we understand the challenges small businesses face when it comes to managing finances. We’re here to help you streamline your bookkeeping processes, avoid unnecessary financial errors, and gain greater clarity about your financial health. Our services are designed to fit the specific needs of your business, giving you peace of mind while you focus on growth.

marianne@accreditedbookkeeping.com