Audit and annual accounts

Turning a regulatory necessity into a real benefit

Many businesses view the annual accounts and audit as a necessary evil imposed on them by the government or some other regulatory body. But does it have to be that way? Are there no redeeming aspects to these regulatory necessities? In our experience, the independent review of your financial position can indeed give you some real benefits.

Your annual accounts provide you with an accurate assessment of your financial performance during the year, and give you the opportunity to review your tax position. Are you paying too much tax, and if so, what could be done to reduce the amount that you pay?

As part of our work we not only ensure that the accounting is correct and that the appropriate rules for filing accounts are met, but also take the opportunity to consider what commercial recommendations we might make to improve your business’ profitability. So for example we will often:

• find situations where you can reclaim tax that has been overpaid or claim missed allowances
  
• suggest ways in which you might get a better return on your cash resources
  
• identify ways of improving the efficiency within your accounting functions
  
• provide suggestions and recommendations about the profitability of individual products or services that you offer
  
• put forward options for removing weaknesses in your existing systems.

An annual audit can also provide you with some real advantages. Apart from the obvious benefit of giving you greater confidence in your figures, the audit can give added confidence to:

• any external shareholders
  
• your bank or other source of finance
• any prospective purchaser of your business 
• current and potential suppliers and customers
• grant-awarding bodies.

Audited accounts also provide you with an independent check on systems and procedures and can act as a fraud deterrent.

Whilst some will still view the annual accounts and audit as a necessary evil imposed on their business, you should focus on the benefits that they provide.

Indeed, we have a number of clients who choose to retain the audit, despite exemptions to which they are entitled. They, like us, believe that the annual accounts and audit can indeed be much more than a regulatory necessity. They can be a real benefit.