How Audits Can Save Your Small Business

Many Micro, Small, and Medium Enterprises (MSMEs) in Nigeria operate daily without knowing how much money they’re truly losing. It’s only during an audit that the truth often comes out—and by then, it might already be costing you growth, funding, or peace of mind.

At Taisha Associates, we’ve audited dozens of businesses across Nigeria, from Lagos to Enugu, and here’s what our lead Chartered Accountant, J. Taiwo Popoola, has discovered.

1. Poor Record-Keeping Is Common (And Costly)

Many small business owners rely solely on bank statements or memory to track income and expenses. Without proper bookkeeping, it’s easy to miss tax deductions, understate profits, or even miscalculate payroll.

Lesson: Get a simple accounting system in place. Even a spreadsheet is better than nothing.

2. Personal and Business Finances Are Often Mixed

A common habit among entrepreneurs is using one account for both personal and business transactions. This not only confuses financial reporting but can also scare away investors or lenders.

Lesson: Separate your business finances. Open a dedicated bank account for your company.

3. Tax Compliance Is a Struggle

From PAYE to VAT to Company Income Tax, many MSMEs aren’t clear on what taxes they’re required to pay—or when. The result? Penalties, interest, and unexpected visits from tax authorities.

Lesson: Learn the basics of your tax obligations or work with a professional to stay compliant.

4. Inventory and Cash Leakages Go Unnoticed

Without routine checks or internal controls, inventory losses and petty cash misuse are widespread. One client discovered they were losing thousands monthly due to theft and waste.

Lesson: Introduce internal controls, like stock counts and approval systems for cash expenses.

5. Many MSMEs Are Not Investor-Ready

Even businesses with great products often fail to attract investors because their financial records don’t inspire confidence.

Lesson: An audit-ready business signals to banks, investors, and partners a strong signal.

Conclusion: Audits Aren’t Just for Big Companies

Auditing isn’t about punishment—it’s a powerful tool for growth, transparency, and long-term stability. Whether you’re seeking funding, preparing for expansion, or want to sleep better at night, making your business audit-ready is a smart move.

Ready to see how audit-ready your business is?
Book a free 30-minute consultation with Taisha Associates today:
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