The need for maintaining records in compliance with HMRC requirements is mandatory for companies. In addition to the preparation and submission of annual accounts and company tax returns, the records are important for the purpose of audit. An audit gives your company greater control over finances and performance, by identifying challenges and areas of improvement.
Financial statements need to be prepared and maintained to comply with the requirements of the Companies Act and also to be shared with various stakeholders and investors. The consolidation and preparation of accounts demands accounting expertise and experience. The information needs to be collated and compiled with accuracy, and presented in a manner that is simple and unambiguous.
One of the advantages of statutory audit is the ability to get insights into accounting procedures and internal controls in your company. The review of financial statements and maintenance of records help auditors to understand more about the procedures followed and its impact on the overall health of the company. Not only does auditing help companies to meet the requirements of regulators, they permit companies to plan and control their operations better.
As part of your accounting and/or auditing requirements, your company needs to maintain the following records, failing which penalties and administrative action can be initiated by the HMRC.
The government rolled out regulations permitting small companies to take a call on undergoing a statutory audit. To be eligible for this consideration, small companies need to meet two out of three criteria, which included the balance sheet total, the turnover and the number of employees. Ideally companies needed to be smaller in size across the three criteria, with specified limits. Formal announcements about statutory audit have been made and are in place through updated government orders, including Audit Directives and Disclosure & Transparency Rules.
At present, there are directives in force mandating the need for limited companies and a category of entities to furnish annual accounts and consolidated accounts. The adoption of this directive effectively means that the companies that fall within the purview of this directive need to maintain and furnish the necessary accounts as per reporting standards.
It is important to choose the right auditing service to compile, furnish and audit the accounts. In addition to helping remain compliant and gaining indepth insights about financial health, an audit needs to steer clear of audit offences. To stay in the clear, it is necessary to employ the services of an agency that enjoys a reputation of the highest accounting and auditing standards.