If you’re in business you will need to report your profits to HMRC and that means producing accounts at least once a year.
However, your accounts aren’t just for HMRC’s benefit. The accounts production process provides a good accountant with a great opportunity to gain valuable independent insights into your business, which should then be used to inform the advice you receive, having first translated your accounting information into plain English .
Producing accounts requires a detailed analysis and consideration of all your business transactions and that can lead to many beneficial suggestions on matters such as tax planning, cost savings, best working practices in your business sector, etc.,
If you understand your company’s financial performance you will be in a position to improve it. A careful analysis of past financial performance can certainly influence future financial performance for the better.