4 Benefits of Conducting a Legal Audit for Your Business

Whether your business employs one or 10,000 and whether its annual revenue is in the thousands or millions, a legal audit is an essential part of protecting your business interests and laying the groundwork for future growth. Learn more about the benefits of conducting routine legal audits and what your legal audit should include.

Minimize Legal Liabilities

A comprehensive legal audit can significantly reduce your company’s potential legal liabilities. Your auditing attorney will uncover gaps in your existing legal protections, find contract clauses that don’t serve your company’s interests, and explore policies that are unclear or potentially problematic. As they discover different problems, you can take steps to address these challenges and strengthen your company’s legal protections.

Stay Compliant With Local and Federal Laws

Compliance with local, state, and federal law is essential for you as a business owner. When regulatory agencies find issues with compliance, they can impose heavy fines and other penalties. Working with a business attorney is one way to ensure that you are compliant with all relevant statutes. Regularly scheduled audits can help you stay up-to-date with recent legal changes that may affect your business operations.

Uncover Areas of Inefficiency

In addition to the obvious legal benefits of a business audit, you may also find that an audit can help you streamline your business operations and cut out inefficient procedures and protocols. As you work to analyze different areas of operation within your company, you’ll find out where redundant protocols are slowing you down, which departments are underperforming, which departments are overstaffed, and where you can save time or money.

Find New Revenue Streams

Throughout the course of your legal audit, you may find new opportunities for business expansion. Perhaps your legal audit will discover infringements on your company’s trademarks or patents, giving you the chance to recover damages from infringing competitors and protecting your company’s intellectual property. Additionally, you may find ways to cut down expenses or renegotiate contracts with utility companies, manufacturers, and other service providers.

What to Include in a Legal Audit

When you begin working with your business attorney, they’ll further explain the different areas of an audit and what to expect at each step. Your audit could include several different steps, including:

  •    Review of contracts with manufacturers, clients, and employees
  •    Analysis of employment policies
  •    Exploration of relevant statutes and determining whether your company is compliant or non-compliant
  •    Analyzing the company’s financial processes
  •    Looking into the corporate structure and entity for maximum tax benefits
  •    Protection against litigation
  •    Protection of consumer privacy
  •    A look at your company’s intellectual property and whether or not it is being protected under current procedures

When you choose Wilson Law Group, PLC for your business law needs, you can rest easy knowing that your company is in good hands. To prepare for a legal audit or discuss your other legal needs, call Wilson Law Group, PLC at 804-864-5268.

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Wilson Law Group

Jim Wilson is the founder and principal attorney of the Wilson Law Group. For the past 25 years he has been combining legal dexterity with an entrepreneurial mindset to help aspiring and established business owners start, finance, buy, sell, and run their companies.

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