While we all need fast, reliable figures, getting them without impeding the unfettered growth of an expanding firm can be a problem. This article sets out how it can be achieved.

Everyone wants quick monthly accounts, and by extension, annual accounts produced fast. But to be advantageous to the company they must be prepared:

  1. quickly
  2. correctly
  3. and cost effectively

There is no need to "reinvent the wheel" -- others have already found out the easiest ways forward and we can build on their experience. There are certain guiding ideas which make progress on this easier.

  1. Keep your auditors (if you are subject to audit) informed of your plans. It is no use producing accounts within 2 weeks of your year end if your auditors arrive at their normal time which could be three months later, to audit them. And they then could pick holes in your cherished ideas.
  2. Recognise that progress will come from a series of small ideas and improvements, rather than one or two large ones.
  3. Insist that while IT will allow faster processing to help you, controls must still be put in place and adhered to, at all times.

Why Are SME Accounting Requirements Different?

  1. Because in smaller organisations the owner(s) are more in control.
  2. However, growth means delegating to reliable staff, before things go wrong, or before the owners lack time to continue their previous role as the sole controllers.
  3. Monthly accounts enable owners to keep control --lateness of expected results is itself a warning sign.

What Is Gained From Quickly Produced Monthly Accounts?

  1. SME owners can take action where necessary, faster. Value can be added to a company by stopping losses, and developing profitable ideas.
  2. Bank managers will place more reliance on the results -- no mean advantage when an expanded overdraft is required quickly.
  3. Outside investors will have more confidence in the company if they get good results published quickly and correctly.

But - SME owners are always suspicious. You can expect them to say:

This sounds great In Theory, but what about:

  1. Monthly stock checks -- forget it -- we have an enormous problem with our one annual count.
  2. Accruals and provisions each month. -- it takes ages to complete this once a year.
  3. Anyway, our auditors always seem to find the need to adjust our figures (and they're usually right ), so our quick figures will be out.

The answers to these problems are really already known. It is now a case of grasping the nettle. If the SME is to continue expanding, especially if it has its sights set on a quotation, it is mandatory that this is done.

These are all problems which hundreds of companies overcome every month. To join the ranks of today's successful businesses, each and every expanding SME has to do the same.

It has been done before.

It is not a case of "Can it be done ?"-- only "When shall we start to do it ?"

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances