SMEs 'should review accounts quarterly'

News Article - 13 March 2008
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Small businesses in Britain should conduct reviews of their accounts at least quarterly and employ outside accountants, an expert claims.

According to a Business Link adviser, owners of new firms can still benefit from some help with their accounts, either through hiring a professional or by implementing SME accounting software, even if they are "financial whizzes".

Claire Savidge explains that regular reviews of accounts can help small and medium-sized enterprises (SMEs) to cut tax bills and save costs in other areas.

"From a business adviser's point of view, business owners are encouraged to have regular reviews of their accounts but it really does depend on the business stage that they're at and their growth, and also the financial knowledge that business owner has," she said.

"This should be quarterly at least, especially at the start-up stage if they don't have any knowledge themselves."

A recent study by the Professional Oversight Board stated 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".

Clear financial and business reporting practices can enhance business health, control costs and apply for appropriate schemes to improve their competitive edge.

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