Tax accounts – useful or not?
Many businesses pay from £700 upwards for their annual accounts to be completed. How many actually use the accounts to assess their position and profitability?
Accounts show real costs, all be it sometimes not broken down into enough detail. Bu
t, they can provide a good starting point to see where things have gone wrong, or gone right. Questions that should be raised from annual accounts are as simple as:
Did I make a profit?
Did the profit cover my drawings?
Did my balance sheet improve?
Is my output, measured by sales, growing?
Are my costs increasing faster than my output?
These questions will provide a starting point for some decisions on best way forward.