Audit preparation guide for small businesses

What the audit preparation guide for small businesses gives you

An audit goes faster and costs less when you are ready. This guide explains what an auditor does, builds a preparation timeline, lists the documents and schedules to have ready for each area of the accounts, shows typical questions and the common reasons for delay, and includes a document request tracker to use during the audit.

Who it is for

Business owners and finance managers whose accounts are audited, and bookkeepers who support the auditor.

How to use it

1. Agree the timetable with your auditor.
2. Work through the preparation checklist well before the visit.
3. Prepare the schedules for each area.
4. Use the tracker to answer requests quickly.
5. Keep a signed or dated copy with your records, so you can show what was agreed or done.

What is inside

• Preparation timeline
• Document checklist by area
• Typical auditor questions
• Common causes of delay
• Document request tracker

The document is a ready-to-print PDF with these parts: What an auditor does, Preparation timeline, Documents by area, Common causes of delay, Document request tracker. It is laid out for A4, with the headings, tables and tick boxes already in place, so you can print it and fill it in by hand, or type into it with a PDF editor.

Tips for getting it right

• Reconcile everything before the auditor arrives.
• Name one person to deal with the auditor.
• Answer requests the same day.
• Keep a copy of everything you hand over.

Why it helps

Accounting records let you answer three questions at any time: what came in, what went out and who owes whom. Kept consistently they also make tax returns, loan applications and the sale of a business much easier, because the evidence is already organised. Entering transactions the day they happen is far cheaper than reconstructing them at year end.

Questions people ask

Can I edit it? It is a PDF, so it is meant to be printed and completed, or filled with a PDF editor. If you want to change the wording, copy the text into Word or Google Docs and adapt it to your business.

Is it legal advice? No. It is a practical starting point written for Kenya. Rules change, so check the current position and ask a professional where the stakes are high.

Will it work on my phone? Yes for reading. For filling in and printing, a computer or a PDF app works best.

Keeping it safe and up to date

Good accounting records are a legal duty as well as a management tool: keep the supporting receipts and invoices with the workbook, and keep each year's copy for at least five years. Work on a copy, never on your only file, and back it up.

Read how to keep business records for KRA for the wider picture. Free calculators that go with it: Corporation tax calculator. See more accounting templates or ask us for a custom one.

This document is general information, not tax, legal or accounting advice, and it is not affiliated with the Kenya Revenue Authority. If something does not work as described, contact us and we will put it right.

Related guides, calculators and templates

• Free calculator: Corporation Tax Calculator
• Guide: How to choose accounting software for a small business
• Guide: How to run a month-end close for a small business
• Guide: How to read a balance sheet: a guide for small business owners in Kenya
• Another template: Branch and department profit and loss
• Another template: Financial statements explained for business owners
• Another template: Monthly profit and loss statement

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