Ensuring that your accounts are in order is crucial to the success of any business. Without organised records, it can be hard to conduct audits. With more spotlight falling on accountancy companies for poor audits, we have put together a few tips on how to keep accounts in order.
At Coleman and Co we offer advice and guidance on accounts preparation for our clients, ensuring that all paperwork is in order.
The Importance of Being Organised
This week it has emerged that KPMG, one of the ‘big four’ in accountancy, are being investigated for their financial audit of Bargain Booze owner Conviviality. In particular, the watchdog are looking into financial statements for the 52 weeks leading up to April 30 2017.
The FRC (Financial Reporting Council) have also stated that they are investigating another as yet unnamed member of the Institute of Chartered Accountants in England and Wales.
Last month another major accountancy firm PwC were fined £10 million for ‘totally inadequate’ financial audits. Whilst investigating the finances of BHS after it’s collapse, the firm have been criticised for their management of audits.
Audits are a big focus in financial news, demonstrating the importance of getting documents in order. With more pressure mounting on the documents kept by businesses, it is important to keep your documentation organised.
Preparing Your Accounts
There are a few things you can do to keep everything in order. Accounts do not have to be difficult to prepare and help to provide a history of a company. Along with this, they are also used when tax returns are being completed.
It is important to remember that keeping financial documents in order is a long-term process. It is far easier to do small amounts at a time rather than leaving it all to build up.
What are Statutory Accounts?
Providing copies of your statutory accounts to a number of people is a legal requirement. These accounts can often be referred to as annual accounts and offer an insight into your business, small or large.
The Government requires you to send these accounts to all shareholders, any person who can go to general company meetings, companies house, and the HMRC (HM Revenue and Customs). Different deadlines will be given for each of these to be submitted, so you should check up on this.
Statutory accounts must include a few things, such as:
- Balance sheet – shows value of everything owned by the company, what you are owed, and what you owe
- Profit and loss account – shows company sales, running costs and profit or loss
- Notes about financial documents
- Directors report (unless you are a ‘micro-entity’)
Any accounts submitted must meet standards set by the UK Generally Accepted Accounting Practice (UK GAAP) or the International Financial Report Standards (IFRS).
Using a Professional Accountant
An easy way of keeping your financial documentation in order is to use a professionally qualified accountant. Choosing an accountant that works with your type of business is important to ensure that they can correctly prepare any accounts. Having an accountant reduces stress, saves you time, and ensures that your business meets outlined regulations.
At Coleman and Co we work closely with the HMRC to save you time. Our trained accountants are able to prepare full annual accounts and help you with any tax returns you may have.
To find out more about our accountancy services, please give us a call on 028 9266 3599 or fill in our online contact form.