Small businesses are a vital part of the Scottish economy, yet 83 per cent of them report barriers that feel like they are holding back growth.
Many of those barriers are external and outside the day-to-day control of owners as they centre on economic uncertainty, supply‑chain disruption, rising fixed costs, wage pressures and an increase in regulatory and administrative burden.
For some businesses, audits might be the key to breaking down barriers, but for businesses below the threshold, other options need to be considered.
How can an audit help tackle barriers to growth?
A well-executed audit can improve credibility with lenders, investors and trading partners, helping unlock finance or contracts that might otherwise be out of reach.
It highlights risks, inefficiencies and control gaps so management can act before a small problem becomes a large one.
This means that businesses are empowered to take control of the financial issues that present challenges within their own operations.
Where businesses regain control over their own finances, they can better adapt to external pressures and economic uncertainty, as business owners can have confidence in their own financial stability.
How businesses that don't need an audit can tackle barriers to growth
If your company is below the statutory audit threshold, you don’t need to commission a full audit to become more resilient and growth-ready.
Instead, you can consider adopting some of the strategies that often get recommended to businesses as a result of audits.
This could include giving all of your financial information a thorough review to ensure that all of your current expenses can be comfortably met by your revenue.
Doing this will allow you to determine your working capital, the amount of extra funds you have, and can enable you to invest more if you are able or to start cutting back if necessary.
Improving bookkeeping and internal controls reduces the risk of errors and frees up time and cash that would otherwise be absorbed by avoidable problems.
Where external assurance is useful, consider a lighter independent review rather than a statutory audit.
A review provides third‑party comfort to stakeholders at a fraction of the cost and disruption, while still highlighting obvious issues.
Targeted advisory work, whether on pricing, margins, contract terms, or procurement strategies, can often unlock immediate improvements in profitability without the expense of a full audit.
It is always worth taking a look at your internal operations to consider where you might be limiting yourself in terms of scope for growth.
The external pressures that squeeze business can often feel insurmountable as they are beyond the control of most business owners.
Understanding how to strengthen the resilience and agility of your business is vital for surviving economic uncertainty.
We can help you understand your finances and consider how to better manage your funds so that you are less impacted by external pressures.
