The importance of auditing in SMEs

The current economic and regulatory scenario represents an important challenge for SMEs, forcing them to be in line with regulatory requirements and the need for timely and quality financial information, both for strategic decision making and for obtaining financing and developing their activities or new projects.

In Chile, there are more than 900 thousand companies, of which 220 thousand are SMEs and some 680 thousand are micro-enterprises. According to the Radiography of the Entrepreneur, prepared by ASECH in 2019, the main sources of financing for entrepreneurs correspond to their own resources (85%), followed by public funds (8.5%) and finally bank loans (6.5%).

Furthermore, it is necessary to take into consideration that in Chile, SMEs account for nearly 99% of the companies incorporated and that they account for nearly two thirds of employment (2,774,193 workers in the country work in micro-companies (1 to 10 workers), which account for 37.3% of formal jobs, followed by large companies (200 workers or more), with 34.6%, representing 2,574,977 people). Meanwhile, small companies (with between 11 and 49 workers) account for 13.1% of jobs, while medium-sized companies (between 50 and 199 workers) account for 14.9%.

It is in this context that AAC Advisory seeks to accompany entrepreneurs and SMEs that are unable to afford the services of large consulting firms. We are convinced that we are the best option in price and quality for all those SMEs that wish to professionalize and optimize their processes, together with improving the quality of financial information in order to opt for better sources of financing.

However, it is important to emphasize that not only do audits of SMEs help to improve access to bank financing, but also give investors the confidence to decide to invest in venture capital, finance projects or be part of growth projects, since an audit carried out by independent and qualified third parties generates investor confidence, with the aim of strengthening and leveraging the growth of SMEs in the world.

Our experience providing services in the most important companies in the consulting and auditing industry, give us the confidence and certainty that the sustained growth of small and medium enterprises, must walk hand in hand with the confidence and company of independent firms such as AAC, also generating control tools to investment partners or managers, delivering the tranquility of good practices, regulatory compliance and business ethics, thus becoming companies that set an example with the purpose that employees and different Stakeholders seek to work with them, since respect and trust will be the cornerstones of the business future.