If you are very enthusiastic about starting a new business and have done research as to what are the major steps that must be followed while opening a new business. If yes, there’s one important step you must never skip and that is Due Diligence Audit(DDA).
The term Due Diligence Audit might sound complex and technical but that’s only because you’re probably new to the term. At GFCS Nepal, we’re here to break the term down for you in as simple words as possible. In this article we will explain what Due Diligence Audit is, why it is important and how GFCS Nepal can help you in making the process of DDA smooth and hassle free.
What is Due DIligence Audit?
Due Diligence Audit is a thorough investigation or overview of the business before making decisions regarding buying, investing, merging or entering a joint venture. It helps you get a full overview and verify the true value, finances, risks and if the business is in legal compliance. It’s like a background check of a business.
You can understand it like you’re checking every corner of a thing before you’re actually buying it. It ensures you make a smart and tactically correct decision and do not face unexpected problems later on.
What is the Due DIligence Audit important in Nepal?
This is the time that has seen the most significant development in the business sector. Huge business transactions, new partnerships forming, businesses merging and attraction of local and international investors are some of the major activities that we can observe. But at the same time issues like poor financial records, tax issues and hidden liabilities are very prominent.
And that’s actually why Due Diligence Audit becomes essential. Here’s why:
- Protects your investments: You can confirm if the business is actually worth what they claim
- Uncovers hidden issues: Tax penalties, unpaid loans and legal disputes can be identified
- Ensures legal and financial compliance: It ensures that the company is in compliance with the laws.
When should you do a Due Diligence Audit:
- Buying or acquiring a business
- Entering a partnership or joint venture
- Merging with another company
- Seeking investors
- Selling or purchasing commercial property
Basically, if you’re investing on something are putting your money on the line a DDA is a must
What does a Due Diligence Audit include?
A DDA includes a full review of every aspect of the business. Here’s what it should cover:
1. Financial review
- Audit reports
- Bank statements
- Debts and liabilities
- Revenue, expense and profit
2. Tax compliance
- VAT and Tax statements
- Tax return and filings
- Tax clearance
- Penalties and compliance with the laws
3. Legal documents
- Registration and licensing
- Past or pending cases
- Property ownership or lease documents
4. Operational review
- Target audience and market capture
- Technology used
- Agreements
- Business model and structure
5. Human resources
- Employee informations
- Payroll and benefits
- Structure of the business
6. Market analysis
- Position in the market
- SWOT analysis(Strength. Weakness, opportunities and threats)
- Possible competition in the market
How GFCS Nepal can help
Performing a Due DIligence Audit can be a difficult task and you might face many difficulties but that’s exactly where GFCS Nepal exists. We have a team of professional and skilled auditors, legal advisors, and experts who handle every step in the process of DDA from start to finish.
Here’s how we help:
- Professional audit with full confidentiality: We respect your privacy and every DDA we do is fully private and in compliance with the laws.
- Structured for your necessity: We study your condition and provide our services according to your necessity.
- Clear and understandable reports: We don’t just stack numbers, we give clear reasonable reports that are easy to understand.
- Fast services: We understand that business decisions should be made quickly so we provide fast services so you can make timely decisions
Final Thoughts
The term Due Diligence Audit might seem too technical but putting it simply it is about protecting your time and money and investing it on a business that gives you good returns. It gives you a full picture before investing.
At GFCS Nepal we make that process very simple, transparent and affordable for you. We can be your trusted partner in smart decision making. We are more than happy to help you so please feel free to contact us.
Contact Us:
We are here to make your time very efficient. We will provide suggestions and offer experienced professionals that will help you understand finances and make your process of Due Diligence Audit as simple and easy as possible. If you have queries or need any kind of help or consultation we are always at your service and our team is always eager to work and coordinate with you to make your work easier. For someone who needs our assistance you can contact us through
Phone: 9802360825
Email: [email protected]
Website:https://gfcsnepal.com/
Location: https://g.co/kgs/J6pufPG
You can also reach us through social media, we have our services available on facebook, Instagram and twitter. You can leave in a msg or a call and our team of experts will reach you as soon as possible. We look forward to working with you and helping you with the process of DDA.