As an SME business owner or manager do you see the annual audited financial statements as a burden and therefore often present the minimum that can be got away with and still comply with the reporting framework? Whilst a recent review by the Financial Reporting Council in the UK was examining small UK public companies, many of their findings can be translated across borders and into the private sector. Financiers will read the annual audited financial statements, the auditorsâ€™ report and the directorsâ€™ or managersâ€™ report and the higher the quality of, and the more rich, the data the more confidence they will have in the company and its management. This in turn means that they may be more willing to open their chequebooks and with more favourable terms than when presented with less information.
The annual accounts are generally the one opportunity in the year that financiers have to receive â€œpure informationâ€ and the opportunity it provides SMEs should not be under-estimated. Providing relevant information will always put you in a more favourable light than if the data has to be asked for or if explanations are discovered later. After all, you know your business and if there are questions, you can answer all too easily. On the other hand you can pre-empt questions by providing explanations, thereby instilling a higher level of confidence in the user of the financial statements who, in all likelihood, will be your financier.
We feature in this issue an article on Payroll Processing in the Cloud, Business Valuation and our usual updates from Oman and Offshore world.
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