Three requests arrive at the worst moment. An auditor sends a request list. A bank asks for financial statements for a credit review. A potential investor wants to see how the business really performs. A company that keeps tidy books year-round can answer each in a day. A company that does not spends a month rebuilding the past. This guide lists what these readers typically ask for and how to keep it ready.
What auditors usually request
| Area | Typical evidence |
|---|---|
| Bank and cash | Statements and signed reconciliations at year end, with old unreconciled items explained |
| Receivables | Ageing report, customer statements, subsequent receipts and notes on doubtful balances |
| Payables | Supplier statements, unpaid invoice list and cut-off checks around year end |
| Inventory | Stock count sheets, valuation report and method, slow-moving analysis |
| Fixed assets | Register, additions, disposals and depreciation, as in the asset register guide |
| Payroll | Salary sheets, payment proof and end-of-service calculations |
| VAT and tax | Returns, reconciliations to the ledger and any correspondence with the authority |
What a bank looks at
Banks focus on repayment ability. They look at revenue trend, margins, the size and age of receivables, existing borrowing, cheque and bank statement behaviour and the owner's other exposure. Clear statements, consistent figures between VAT returns and accounts, and a stable cash picture make approvals faster. Late and bounced payments, unexplained transfers with owners and unrecorded liabilities do the opposite.
Habits that make a difference
- Reconcile monthly: bank, supplier statements and VAT, as part of a routine close.
- Attach the document to the entry: invoice, contract or approval stored with the transaction, not in someone's inbox.
- Keep owner and related-party items separate: loans, withdrawals and transactions with connected companies should be clearly labelled.
- Lock closed periods: changes after the books are closed need approval and leave a trail, see access control and audit trail.
- Write down estimates: provisions and judgments should have a short note explaining the basis.
Prepare a standing data room
Keep a folder, physical or digital, with incorporation documents, licences, contracts, key policies, last three years of statements and tax filings. When a request arrives, you send a link instead of starting a search. Many companies also build a monthly management pack, as described in owner dashboards, and reuse it for lenders. Requirements for audits and filings depend on your company type and licence, so confirm specifics with your auditor.
Talk to us about reports and document storage inside your system.