In an exclusive interview with CanadianSME Small Business Magazine, Harjoet Mudan, Partner at Reach LLP, shares why strong financial foundations are essential for growing businesses seeking long-term success. With extensive experience in audit and assurance, Harjoet discusses how organized reporting, effective internal controls, and proactive financial practices can help entrepreneurs make informed decisions and build stakeholder confidence.
Interview By SK Uddin
Harjoet is a Partner at Reach LLP, an audit and assurance firm, with a strong focus on technical accuracy, practical insight and supporting confident business decision-making. He works closely with business owners and leadership teams to deliver reliable financial insight, meet regulatory requirements and navigate complex reporting needs without unnecessary complexity. Through Reach LLP’s affiliation with Reach Professional, clients can also access accounting, bookkeeping and advisory services.
With a background in auditing publicly traded companies, Harjoet brings strong judgment, attention to detail and a business-forward approach to every client relationship..
You work closely with owners who often only think about assurance when a lender, investor, shareholder, funder or regulator suddenly asks for audited statements. What do you wish more growing businesses did earlier, before anyone formally requests an audit or review engagement?
The first thing I’d like business owners and entrepreneurs to understand is that maintaining organized records goes beyond helping you stay ‘audit-ready’ by allowing you to see the complete picture of the company’s finances, so you can make more informed business decisions.
Below are the first two steps that will create the foundation of building financial statements that are ready for audit or review- while also providing valuable information for companies.
The first step is to ensure you are maintaining a complete & accurate general ledger that is linked to underlying third-party supporting documents.
Once the general ledger is complete and accurate, owners should implement a formal month-end process to ensure journal entries are posted to be able to build financial statements that are compliant (IFRS, ASPE, US GAAP).
Having this a part of your regular business process will save valuable time and expense in the long run. One of the most common things I hear from clients is, ‘why didn’t I do this sooner?’.
Many leaders hope they can “fix the books” once an audit is already underway, only to find the process stressful and time‑consuming. Why is it so difficult to clean things up at that stage, and what are some of the most common issues you see when businesses wait too long to get their financial reporting and documentation in order?
Trying to “fix the books” once an audit is underway often creates more work, not less. Auditors plan their procedures based on the financial information provided at the outset. If that information is incomplete or inaccurate, the audit plan may need to be reassessed as new issues emerge, increasing the scope, time and cost of the engagement.
Common problems include multiple versions of the general ledger, unreconciled accounts, missing supporting documentation, incomplete financial statement schedules and transactions that have not been recorded or classified correctly. Auditors may also identify internal control deficiencies or areas where management cannot clearly explain how balances were calculated.
These issues have a ripple effect. Work may need to be repeated, additional samples may be required and areas initially considered lower risk may require greater attention. The completion stage can also take longer because the auditor must assess and communicate any misstatements, control deficiencies or other significant findings to the owners, board or audit committee.
The most efficient audits happen when the books, supporting schedules and documentation are complete, consistent and ready before fieldwork begins.
Reach LLP is focused exclusively on audit and assurance and is affiliated with Reach Professional, which provides accounting, bookkeeping and advisory services. How can proactive bookkeeping and organized financial reporting support financing conversations, investor confidence and stakeholder trust, especially as a business becomes more complex?
When a lender, investor or stakeholder requests financial information and receives a clean set of financial statements within days or a couple of weeks, it signals that management is capable and understands the business.
Having reliable financial statements readily available also allows businesses to act on opportunities as they arise. Those that cannot produce accurate financial information in a timely manner risk losing financing, M&A and other opportunities.
As a business becomes more complex, weaknesses can compound into larger problems that take considerable time for management to resolve. With increased complexity, businesses need the right resources to assess and report the related accounting impact. Complex financial reporting often arises in situations involving convertible debt, private share placements, compound financial instruments, business acquisitions or divestitures. Good business owners know when it is time to seek expert help.
Strong financial statements build stakeholder trust and investor confidence. Conversely, unreliable financial reporting can quickly erode that confidence and may ultimately cause deals to fall through.
Your approach emphasizes practical insight, not just technical compliance. What internal systems, controls, and habits can a growing business put in place now so that an audit or review engagement becomes less disruptive and more valuable for decision‑making when it does arrive?
As I mentioned earlier, creating a robust framework early allows management focus on their business, while knowing they have the financial records to help them make informed decisions. It does not need to be onerous, but it does require the right people at the right time.
A simple month-end checklist should be implemented by every business. The best operators I have seen create a waterfall checklist with preparer’s initial, date, along with a separate reviewer’s initial and date.
This checklist should include preparation and review of monthly bank and credit card reconciliations, checking completeness and accuracy of accounts payable / accounts receivable aging list, all manual journal entries, such as identifying accruals, depreciation & amortization.
Even with a lean team, I would recommend businesses implement sufficient segregation of duties, where the preparer has an independent reviewer sign off on their work.
Businesses that do these things consistently find that an audit becomes a validation exercise with key insights & recommendations from their auditor rather than a disruption, and the reporting itself becomes a genuine management tool.
Outside the firm, you mentor through the World Sikh Organization and describe yourself as a perpetual learner with a curiosity for science and emerging technology. How does that mindset shape the way you support clients, and what final piece of advice would you offer Canadian small and mid‑sized business owners who want their financial reporting to support growth instead of slowing them down?
Being a perpetual learner is what keeps me useful to my clients. Technology and business don’t slow down, so I stay curious about the tools and ideas that could help them, whether that’s automation in their day-to-day accounting or the way emerging tech is reshaping their industry.
My mentorship role at the World Sikh Organization is one of the ways I give back to the community. It gives me a sense of fulfillment to help individuals and businesses achieve their goals, and it frames how I approach client service. Just as I’m in my mentees’ corner as they navigate their personal life & professional career, I’m there to support my clients in their success.
A final piece of advice I would give to Canadian small and mid-sized businesses is to apply a tactical approach to improving your financial reporting. Every business is different; identify your weaknesses and apply the right resources, which can save you substantial time, cost, and create opportunities for strategic decision-making.
Disclaimer:
The views and opinions expressed in this interview are those of the guest and do not necessarily reflect the official policy or position of Black Business Magazine or its affiliates. The magazine is committed to supporting Black entrepreneurs and fostering conversations that promote inclusion and economic empowerment.
