Small Businesses Exempt from Annual Account Audits?

If, like many small and medium-sized businesses, you’ve rightfully claimed exemption from having your annual accounts audited, you may think you’re safe for this year.

However, as one exempt client has just discovered, you must still have your accounts audited if shareholders who own at least 10 per cent of shares (by number or value) ask you to.

These shareholders don’t have to give you a reason but they must make the request in writing and send it to the company’s registered office address. They must also ensure that the request arrives at least one month before the end of the financial year that the accounts cover.

Our client was initially annoyed at the extra out-of-the-blue work that this entailed. But this was eased when we explained just how beneficial an audit can be.

How auditing your accounts can be beneficial

By law, annual accounts contain the audited report which, of course, is an account of the past 12 months. They’re more than this, however. They’re an opportunity for the directors to:

  • create a powerful marketing tool that sets out the way forward
  • highlight potential new markets for existing products and services
  • show involvement with employee and community engagement schemes
  • explain how problem areas that are evident in the accounts section are being addressed
    give the company the chance to display the personality it wants to portray.

With the right messages, images and production values, your annual accounts could help to bring in new business.

Whether you’re faced with a surprise request for an audit or you’re legally required to have one, we can help you turn what seems like a burden into a blessing.

Read more on the criteria for being exempt from a statutory audit.

Call us on 01392 875 391, email enquiries@mjsmith.co.uk or complete our contact form to arrange a meeting.

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