Tendering? Keep your Audited Accounts on track
These present an independent opinion on your financial statements & helps procuring entities be sure of your business’ financial standing.
The purpose of the audited accounts is to present an independent opinion on the financial statements of your business. This helps outside parties (such as procuring entities) to be sure of your business’s financial standing.
Therefore, if you want to participate in tenders, you need to engage the services of the certified auditor immediately. They will assist you in developing an annual financial report for every year your business is in operation.
Audited financial statements as a legal requirement
While creating a checklist of the mandatory requirements for a tender, it is common to come across this line:
Provide Audited accounts for 3 years (2017, 2018 and 2019) signed by certified accountants. Firms with audited accounts for the Financial Year 2020 will also be considered. The accounts must provide the certified accountants practising number.
Basically, the Auditor needs to establish whether your financial statements are presented in accordance with accepted accounting principles. This is a one-off process that you do annually at the end of the calendar year. The Audited Financial Statements provided are valid for as long as required. This could be part of the reason for the variations in the number of years requested in each RFP.
As usual, we took time to diligently go through tender evaluation reports from the government. We identified some examples of businesses that submitted their proposals without attaching the required number of Audited Account Statements.
This shows a good number of them getting evaluated as being Non-Compliant (NC) to the tender requirements:
We have provided a detailed explanation for the ones marked as ‘NC’ to indicate ‘Non-Compliance’:
Some of the bidders lost crucial points because they failed to attach the requested number of audited financial statements. While some lost because they did not attach the accounts for the specific years in question.
A lot has changed since the Access to Government Procurement Programme came into place. Traditionally, this has been one of the main requirements that locked out youthful businesses from accessing government tenders. Sometimes this requirement can be eased, hence allowing for more AGPO businesses to participate. A good example is not making Audited Accounts mandatory for an AGPO-reserved tender. Still, this doesn’t mean the document is less important for a business that’s serious enough about winning tenders.
Not just for points, your proposal also gets to stand out!
If you are bidding for a government or a private sector tender, do everything in your power to win it. Meaning that you have to ensure you have all the necessary documents as requested.
Getting your financial audit documents ready through an independent party makes your bid more compelling. This, in turn, improves your chances of winning the tender by:
- Making your proposal more competitive. Having audited financial statements sets your tender submission apart from the others. It gives a procuring entity increased confidence that your financial information is sound and accurate.
- Showing transparency. A procuring entity develops a sense of confidence if your financial statements have been prepared by a certified auditor. It also acts as proof of your ability to be accountable if assigned the project.
- Giving an accurate view of financial standing. A financial audit through a certified accountant provides an independent review of how your business is performing. Further, it shows the procuring entity that your financial information is unbiased and true.
Keeping track of all your Audited Accounts and Bank Statements
At the core of Scale’s system is the ability for users to organize and securely store all their important business documents needed for any tender application. This includes a specific section for handling Audited Accounts and Bank Statements as shown below:
Once accurately named and saved, your document will be accessible to you as you work on tender applications. Thereafter, all you do is select the specific year of the Audited Account Statement and add it to your proposal.
This ensures that you always two things:
- You always have access to a true and accurate copy of your Audited Accounts to use in your proposals.
- You do not forget to include the requested documents each time you are working on any tender response.
Get started for FREE with scale.co.ke today to transform the way your business finds opportunities and responds to them. Whether you are applying for public or private sector tender, start bidding confidently and win more tenders!
…This article is part of the Common Tendering Mistakes blog series.