Audit
Tech audits
What companies need to know about having a tech audit
For technology companies, having a financial audit isn’t just about compliance—it’s a strategic tool that can drive growth, build investor trust, and identify key opportunities for improvement. Here, we highlight why audits are vital and how they can benefit your tech business.
Why should tech companies prioritise having a financial audit?
Audits provide credibility. They show investors, regulators, and other stakeholders that your financial statements are reliable and that your company is well-managed. For tech companies, an audit can also uncover operational inefficiencies and highlight areas for growth, giving you a competitive edge in a fast-paced industry.
When should a tech company consider an audit?
Even if not legally required, a tech audit should be considered:
- Before seeking funding or preparing for an acquisition
- When expanding into new markets
- If investors or partners request financial assurance
Proactively choosing to have an audit demonstrates a commitment to transparency and robust financial management.
What challenges might you face during a tech audit?
Audits in the tech sector come with unique complexities, such as:
- Revenue recognition: Navigating multi-year contracts and subscription models
- Asset valuation: Accurately valuing intellectual property and other intangibles
- Scaling pains: Managing the financial implications of rapid growth
Choosing auditors experienced with tech companies can help you address these challenges effectively.
How can tech companies prepare to have an audit?
Preparation ensures a smoother audit process and better outcomes. Consider the following:
- Keep records organised: Ensure contracts, payroll records, and invoices are up to date and accessible
- Review revenue streams: Ensure your revenue recognition policies align with accounting standards
- Strengthen controls: Address any gaps in your financial reporting systems
- Engage early: Work closely with auditors to identify potential issues before they arise
What are the benefits of having an audit, even if it’s not required?
An audit offers more than compliance—it provides insights that can shape your strategy. Benefits include:
- Investor confidence: A clean audit report reassures stakeholders
- Operational improvement: Identify inefficiencies and reduce risks
- Strategic insights: Gain expert recommendations on financial and operational improvements
For startups and smaller tech firms, these benefits can be instrumental in scaling effectively.
What are common pitfalls during audits for tech companies?
Common pitfalls include:
- Disorganised records: Missing documentation slows the process
- Regulatory complexity: Evolving standards can be challenging without expert guidance
Addressing these proactively with the right preparation can save time and resources.
Statutory audit
If your company meets the Companies Act criteria for a statutory audit, our experts can deliver the necessary review of your accounts efficiently in line with statutory requirements. They’ll also highlight new opportunities and identify improvements to your business processes. It will add value and could also win the trust of your customers, investors and stakeholders.
Voluntary audit
When you choose to go through an audit process voluntarily, you send a strong signal to potential lenders and investors about your credibility. You’ll get the same benefits as statutory clients, but with greater value as your business strives towards growth. Plus, when your business grows to a size where an audit becomes statutory, your accounts will already be in the best possible shape.
For more information about our Audit service, click our document below.
Why do investors value audited financial statements?
Investors see tech audits as a sign of reliability and professionalism. An audit assures them that your financial statements are accurate, reducing the perceived risk of investing in your business. This is particularly crucial for tech companies seeking to raise capital or attract strategic partners.
What should you expect as an audit outcome?
The audit process concludes with a detailed report that includes:
- An audit opinion: Verifying the accuracy of your financial statements
- Actionable insights: Recommendations to improve processes and controls
- Enhanced reputation: Assurance to investors, customers, and partners that your finances are sound
Choosing to have an audit can unlock significant advantages for tech companies. Beyond meeting regulatory requirements, audits help build trust, streamline operations, and position your company for sustainable growth. Whether you’re preparing for funding, an acquisition, or scaling up, an audit can provide the insights and confidence you need.
If you’re considering an audit for your tech company, Gravita’s experienced team is here to support you every step of the way.
Our audit team
Ready to get started?
Fill out the form and we will be in touch as soon as possible to discuss how we can help.
Latest Tax Insights
HMRC’s new Inheritance Tax Grossing Up calculator: what it means for you
Written by Private Client Associate Director, Liz Higgins Calculating Inheritance Tax (IHT) is rarely straightforward, and it becomes even more complex when gifts in a
Received a discovery assessment? Here’s what you need to do next
Written by Tax Partner, Dion Laycock Receiving a discovery assessment from HM Revenue & Customs (HMRC) can be unsettling. It means HMRC believes you underpaid
PAYE for employers: how it works and what you need to know
Written by Associate Director, Marc Taylor Running payroll is not just about paying employees. It involves compliance, keeping accurate payroll records, and ensuring the correct
More services
Let’s work together on your growth journey
We work with forward-thinking businesses and entrepreneurs who are going places. Let us join you on your journey.
What makes us different
01
We have high calibre experts. Our team has years of experience and academic backgrounds meaning you’re dealing with seasoned professionals.
02
We’re tech-enabled, but human-led. There are no robots here, just our talented team who use tech to work more efficiently with you.
03
We look beyond the balance sheet. We don’t just do the job in hand, we’ll actively work with you and offer advice to help you grow.
04
We cover everything in the world of accounting. Ranging from everyday financial worries to complex business challenges.
05
We can grow as you grow. Our service is designed so you can scale our team up or down to suit your needs.
06
We understand time is money. It’s why we provide real-time financial data which can help you capitalise on opportunities, plan better and grow faster.