|
Why should you prepare a
proper set of financial statements each year?
November 2007
There are a number of good
reasons to have your accounts prepared correctly at the end of each
financial year.
The Corporations Act does not
require the proper format in case of auditing, however;
-
If a company requires
finance or leasing services, the lender will require a set of
properly prepared financial statements. Lenders mistrust MYOB or
Quicken accounts
-
If a company is being
sold, prospective purchasers will require a set of properly
prepared financial statements
-
Common software programmes provide no comparatives or periodic
comparatives
-
Loans to Directors may
encounter a Division 7a problem which can only be discovered by
doing a proper set of accounts
-
Financial
planning advice can
only be accurately given when working from a proper set of
accounts
-
Financial accounts act
as a 'score card' for a business - only when these are done
correctly can you tell if your business has performed better
than par.
|
