Book-keeping 'can optimise business performance'

News Article - 18 March 2008
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Owners of small and medium-sized enterprises (SMEs) are advised that book-keeping can be "a bind", but is key to optimising business performance.

According to the chairman of the National Federation of Enterprise Agencies (NFEA), small businesses should ensure that they keep accurate records and review them regularly in order to keep track of their business health.

George Derbyshire notes that having ensured that they are keeping their accounts and business reporting processes in order, firms should then turn their attention to tax to check their business health and monitor business progress.

Carrying out a business health check is important for firms of all sizes, although only those with a turnover of more than £5.6 million are required by law to have a formal audit undertaken by independent accountants, Mr Derbyshire suggests.

"I would recommend that all businesses take professional advice to make sure they are set up properly in the first place and secondly to have regular progress reviews," he stated.

A recent report from the Professional Oversight Board claimed that "some directors of small companies were unclear over the options available to them for their financial reporting and how they can obtain help with it".

SMEs trying to keep their management reporting in order should employ SME accounting software in order to facilitate careful planning and improve business performance.

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