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What’s wrong with a set of standard accounts?!
Most businesses use an accountant to prepare accounts for Companies House and to find ways of reducing the tax bill. Is that it? Clients’ can get a lot more from the process, and a lot more useful and constructive advice from an accountant – assuming the accountant has the ability and the chance to provide this.
So what’s up with these accounts that all incorporated businesses must prepare? Well, for starters, they are out of date – since they are usually prepared months after the year-end. And, if you really only on them to make business decisions you can run the risk of a visit by the insolvency practitioner. L Some 80% of businesses go broke as a result of poor financial management.
Wouldn’t it be great if accounts were easier to read, containing less accounting jargon and more words and phrases understandable to the average business person? Accounts could also include performance and analytical comparisons with other companies in the same industry, show the key performance indicators that drive the business, and how they have changed over time.
Don’t despair too much! There are accountants that have more ‘hands-on’ and inside experience of preparing more useful management information and performance indicators. We can provide better, more timely management information and engage in more effective meetings to discuss strategy and planning, identify strengths and weaknesses, support improved decision making, and identify what your business needs to focus on. |
What’s wrong with a set of standard accounts?!
