A voluntary audit costs money. So why do thousands of UK companies that don’t legally need one opt to pay for it? Because in the right circumstances, the audit pays for itself.
If your company falls below the statutory thresholds, you can file unaudited accounts with Companies House. That’s your right under the Companies Act 2006. But skipping the audit isn’t always the smart move. Here are the situations where choosing one makes clear financial sense.
What does voluntary audit mean?
Your company chooses to have its accounts examined by a registered auditor, even though there’s no legal requirement. The process follows ISA (UK) standards and produces a formal opinion on your financial statements. For a full explanation, see our voluntary audit service page.
Could voluntary auditing save your business money?
It can. Consider a company with turnover of £12 million approaching the £15 million threshold. Within 18 months, a mandatory audit will be required. First-time statutory engagements are almost always the most expensive – staff don’t know what to expect, financial records aren’t structured for external review, and everything takes longer than it should. Starting with a voluntary audit a year early cuts the cost of that first compulsory engagement.
Or take a business applying for a £500,000 bank facility. The lender wants audited financial statements before approving terms. Without them, you’re either rejected or offered a worse rate. The fee is a fraction of the interest saving on better lending terms over five years.
And it’s not just external pressure. An audit routinely uncovers inefficiency nobody inside the business has spotted. Duplicate payments, misposted journals, unreconciled balances – they add up. One client found over £40,000 in duplicate payments during their first audit. The fee was £8,000.
When does a voluntary audit pay for itself?
Approaching the size limits. Your turnover is climbing and you’ll need an audit soon. Getting started early means your team and systems are audit-ready before the legal deadline adds pressure.
Raising investment. Investors don’t take unaudited numbers at face value. An audit report from an ICAEW-regulated firm speeds up due diligence and builds the kind of stakeholder trust that gets deals across the line.
Planning a sale or merger. Buyers will scrutinise your finances regardless. Two or three years of audit reports make you a more attractive target and reduce the risk of last-minute price adjustments.
Absentee shareholders. Where shareholders aren’t involved day to day, a voluntary audit can help protect everyone’s interests. It gives minority stakeholders independent assurance that the numbers are accurate.
HMRC credibility. Submitting audited accounts won’t stop an enquiry. But it signals that a qualified professional has already reviewed your figures – and if HMRC does come calling, the process is smoother because your records have been tested. For more on when audits are and aren’t required, see our guide to auditing requirements and exemptions.
Better supplier or lender terms. When you’re negotiating extended credit or applying for finance, audit-verified accounts carry weight that unaudited ones simply don’t.
Is a voluntary audit right for your business?
Not every small company needs one. If you’re a single-director business with no external investors and no plans to sell, the cost probably isn’t justified. But if you’re growing fast, seeking finance, preparing for a transaction, or wanting tighter controls – an audit is likely worth the investment.
We carry out audits for growing businesses across Manchester and the North West. As part of Jack Ross Chartered Accountants (est. 1948), regulated by ICAEW, we bring top-tier rigour without the overhead. If you’d like to talk it through, get in touch for an honest conversation about whether the investment is worth it.
