If you are in the loan business, you probably love offering money to the people who need it the most while making a profit. One thing that might make you nervous, however, is knowing that you could be audited for compliance at any moment. Compliance audits can be scary, but if you remain prepared at all times, then you shouldn't have anything to worry about.

1. Be Aware of Laws and Regulations

First of all, you can't ensure that you are complying with all of the federal and local laws if you don't know what they are. Keep track of all of the most recent laws and regulations for your industry at all times and consider keeping a good lawyer on retainer. Then, he or she can advise you of any legal changes and can help ensure that you remain compliant with these regulations. If you have questions about things like properly storing personal information, maximum interest rates and other laws, make sure that you consult with your lawyer.

2. Use Software to Keep Records

If you are audited for compliance, you probably don't want auditors going through your company records for weeks at a time. To help ensure that everything is handled quickly, it's best to keep all of your important business and customer information in a software program. It will be easy for auditors to pull up the things that they need at any time, and you can ensure that you have all of your records in one handy place. Along with using a good financial business software program related to the loaning industry, you should also make sure that your records are backed up online. Then, if something happens to your computers, you will still have the information that you need if an auditor needs to see it. Plus, your business will most likely run more smoothly and easily if you have all of your important information stored on the computer.

3. Perform Routine Audits Yourself

Don't wait until an auditor comes around to perform an audit. Instead, perform routine audits yourself by asking your employees questions that they should know the answers to and going through random records. Then, you can see if anything is amiss and can fix the problem before a real auditor catches it. You can also contact a professional analytics company, like Steton Technology Group, for assistance monitoring your company's compliance before an audit.

Remaining compliant with local laws is important when you are in the loan business. Following these three tips should help you remain prepared for a potential audit at all times.