Starting a business typically has a lot to arrange from sourcing reliable suppliers to marketing own products and services to the world are time consuming process and require concentration. For this reason, many small business owners find it useful to get advice from chartered accountants in the early days of business to set up their accounting systems and internal controls that would take care of the company statutory obligations and also keep track the business financial position.
Proper Accounting Systems Advice
Having accounting systems to maintain company books and records that suitable for the year end accounts requirements will not only help accountants when come to compiling statutory accounts for Companies House but also to avoid your accountants spending considerable time at year end to sort out the accounting books and records if it is in a mess. Your company will have to pay higher accountant’s fees . Accountants normally charge clients by the hour.
Director’s Responsibility
The company law say it is the responsibility of company director to ensure company maintains proper accounting books and records and this extend to include the following:
The director must also ensure accounts prepared for each accounting period give a true and fair view of the state of affairs of the company. To achieve true and fair view, the director must do the following:
- Select suitable accounting policies and then apply them consistently;
- Make judgements and estimates that are reasonable and prudent; and
- Prepare the accounts on the going concern basis unless it is not appropriate to presume that the company will continue in business.
How Accountant Can Help Director?
You may understand the meaning of true and fair but to achieve true and fair sound like a very complicated process. This may be the case for business people with no accounting or financial educational background. Your accountant can be of useful in explaining the accounting technical stuff and provide practical solutions to your business accounting system to achieve true and fair.
There is no single set of accounting policies can be practical to all businesses. It is dependent on the nature of the business.
Concise Accountancy – Small Businesses Resources Center
