In our previous blog, we laid out how traditional auditing methods are increasingly viewed as a bottleneck, hampering businesses’ ability to stay competitive in the market.
Now, in part 2, we dive into how strategic audits are transforming mere compliance checks into essential tools for growth. Let’s explore what modern businesses really need from their audits.
Did you know 67% of US businesses feel traditional audits are hindering their growth due to outdated and inefficient processes?
According to Inflo’s recent research, this striking insight highlights a crucial shift in how businesses view traditional audits — they are not just about compliance anymore, but essential tools for strategic growth and operational efficiency. As businesses evolve, so do their expectations of audits.
As we explore the transformative role of audits, we'll uncover why a modernized approach to auditing is becoming indispensable for companies looking to thrive in today’s competitive market.
Here's what our research uncovered...
Our recent study found that 72% of businesses across various sizes consider audits vital for enhancing operations, with 51% valuing the competitive insights they provide. At larger companies, particularly those with 501-1000 employees, 58% highlight the importance of these audits for benchmarking against competitors. This is especially prevalent in industries like IT, Telecoms, and Retail, where understanding competitive landscapes is vital for maintaining an edge.
This shift towards strategic digital audits simultaneously enables a more collaborative approach, with 50% of organizations desiring greater cooperation with their audit firms. This figure jumps to 63% among businesses turning over more than $500 million, and 59% for those with over 2,500 employees, indicating a strong preference for deeper strategic engagement among larger enterprises.
“Businesses that stay close to their customers and focus their innovation on trends in customer demand will thrive and grow in this new digital business world," states Mark Edmondson, CEO of Inflo.
A collaborative audit process enables auditors to understand unique business challenges better, allowing for tailored advice and insights that transform audits from routine checks into essential strategic tools. These developments are crucial as businesses navigate complex regulatory environments and volatile markets, where strategic audits significantly impact success.
Traditional audit methods often fall short in fostering true collaboration due to outdated communication tools and file transfer systems, lacking the necessary project management and reporting features that drive transparency and accountability. In contrast, digital audits, particularly through platforms like Inflo, introduce a level of project management that provides both auditors and clients with real-time visibility into the audit process. This transparency ensures better communication and collaboration.
Here’s an important reminder for you: digital audits are no longer just a trend, they're a necessity.
Our research shows that 95% of US businesses demand audits that drive growth and operational efficiency. By harnessing advanced analytics, accounting firms can leverage vast data quickly and accurately, offering tailored insights that address specific business challenges. This newfound capability is pivotal, with 70% of businesses that receive digital audits confirming they get more actionable data compared to 44% of non-digital users.
The transition to digital facilitates a deeper analysis of financial trends, operational inefficiencies, and potential risk areas. These tools streamline workflows and enhance the quality of insights provided, making audits more valuable and reducing the drudgery associated with traditional methods.
As a result, business leaders become equipped with the knowledge to enhance their market positioning and drive growth. This in turn allows companies to better manage costs, streamline operations, and increase profitability.
As audits become increasingly data-driven, they are evolving into essential tools for strategic planning and enhancing operational efficiency. The ability to integrate and analyze data at this level can significantly influence a company’s trajectory and competitive standing.
So don't let your firm lag in an era where strategic agility is key to meeting the evolving modern market conditions. US firms must embrace digital audits to deliver actionable insights and drive business growth and innovation.
Stay tuned for part 3 of our series, where we'll show you how to unlock the full value of digital audits for your firm!
In the meantime, explore our comprehensive research on digital audits and learn how our innovative solutions can help your business thrive in a dynamic business landscape.