Here’s something we’ve been noticing: more and more businesses are asking us for audits even when they don’t legally need them.
If you’re running an SME, you probably know the thresholds. Under £10.2m turnover and £5.1m in assets? You can skip the statutory audit. These thresholds have even gone up from 6 April 2025 to £15m turnover and £7.5m in assets. For years, most businesses saw this as a win – one less thing to pay for.
But lately, that’s changing. And it’s worth understanding why.
The shift we’re seeing
Katie Halsall, our Head of Audit, has been tracking this trend closely. Businesses that qualify for audit exemption are increasingly choosing to opt in anyway. Not because they have to, but because they’re starting to see audits differently – less as a compliance burden, more as a strategic tool.
So what’s driving this?
1. Getting funding is harder without one
This is the big one. Banks and investors want confidence in your numbers, and unaudited accounts often aren’t enough anymore.
We’ve worked with clients who couldn’t get the funding they needed until they got their accounts audited. The bank’s question was simple: “How do we know these figures are accurate?” An audit answers that question.
With lending still tight and interest rates elevated, that extra credibility can be the difference between getting funded and getting turned down.
2. It forces you to get your house in order
Voluntary audits aren’t just about impressing outsiders – they’re about getting your own systems right.
If you’re planning to grow significantly, implementing an audit early makes sense. It forces you to tighten financial controls, improve your record-keeping, and catch problems before they become serious. And the first time you have an audit we have to audit the opening figures too, so if you are growing, getting that audit done ready makes the first year audit easier!
By the time you actually cross the audit threshold, you’re already prepared. No last-minute scramble to fix messy processes and your opening position has already been agreed.
This matters especially if you’re targeting government contracts or grant funding, where financial governance gets scrutinized heavily.
3. It sets you apart from competitors
Here’s a real example: we had a client tendering for a major contract. The buyer wasn’t legally requiring audited accounts, but when our client showed up with three years of accounts with unqualified (clean) audit reports, it made a statement.
Their competitors? Unaudited management accounts.
Guess who won the contract?
For businesses working with larger corporates or operating in sectors where trust matters, audited accounts become a competitive edge.
4. You’re thinking about selling
Planning to exit in the next 3-5 years? Smart business owners start audits well before they list the business for sale.
Buyers conducting due diligence want to see a track record. Three years of audited accounts significantly reduces their concerns and can genuinely improve your valuation.
Private equity firms and trade buyers especially value this. It speeds up their diligence process and lowers their perceived risk – which means they’re more likely to pay what you’re asking.
5. Grant compliance is getting stricter
Government grants and innovation funding (like Innovate UK) often require Independent Accountant’s Reports. These sit somewhere between standard accounts and a full audit.
If you’re already doing voluntary audits, these requirements are much easier to handle. The systems and controls are already in place – you’re not building them from scratch under a tight deadline.
But what about the cost?
Fair question. Voluntary audits for SMEs typically cost £7,000-£15,000 depending on size and complexity.
But here’s how to think about it: if a £10,000 audit helps you secure £500,000 in funding, win a £200,000 contract, or achieve a 10% higher exit valuation, the ROI is obvious.
It’s not really a cost. It’s an investment in your business’s credibility and growth potential.
What to look for in an auditor
If you’re considering a voluntary audit, choosing the right firm matters. Not all auditors are the same.
Questions worth asking:
Do you have experience in our sector?
Sector knowledge means they understand your business model and can spot issues specific to your industry.
What’s your capacity during our year-end?
Some firms get slammed during peak season (January to April). That can mean rushed work and slow responses when you need them most or maybe they won’t be able to fit your audit in at all!
Will we work with the same team each year?
Continuity matters. The same audit team year-on-year means better efficiency and deeper understanding of your business.
Can you add value beyond compliance?
The best auditors spot operational improvements, financial risks, and growth opportunities during the process. They’re not just ticking boxes.
The bottom line
Voluntary audits are shifting from “nice to have” to “strategic necessity” for ambitious SMEs.
The businesses winning contracts, securing funding, and achieving premium exit valuations aren’t necessarily the biggest. They’re the best prepared.
And increasingly, voluntary audits are part of that preparation.
Thinking about a voluntary audit for your business? Get in touch with our audit team to discuss whether it makes sense for your situation.
