The Big Question – Statutory accounts too dear

The Big Question - Statutory accounts too dear

More than one in three finance directors believe statutory accounts are not worth the cost of producing them.

The findings of this week’s Accountancy Age/Reed Accountancy Personnel The Big Question come ahead of the next phase in the government’s company law review. Last week, the steering committee suggested rewriting company law from a small business perspective.

Of the 200 FDs questioned, a sizeable 37% believed statutory accounts were a waste of time for small companies.

One of the main objections was the cost of preparing statutory accounts.

Bill Blyde, FD of BH Incineration, said: ‘They are very time consuming and the biggest cost is audit fees. The cost outweighs the benefits.’

Stephen Flowitt-Hill, of Kingdom Housing Association, added: ‘Little reliance is placed on statutory accounts of small companies by new lenders.

They are a window-dressing exercise.’

More than 50% of FDs, however, defended the role of statutory accounts in small business. ‘Statutory accounts shouldn’t entail much more work once company accounts have been done. Audit shouldn’t be expensive either,’ said Philip Newton Webb, of Premier Structures, the steel fabricator.

Related Articles

5 tips for SMEs to protect cash flow

Accounting Software 5 tips for SMEs to protect cash flow

12m Alia Shoaib, Reporter
Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

Consulting Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

2y Stephanie Wix, Writer
Managing partner Q&A - the year ahead: Richard Toone, CVR Global

Accounting Firms Managing partner Q&A - the year ahead: Richard Toone, CVR Global

2y Kevin Reed, Writer
Deloitte 'self-imposes exile' on government contracts to defuse PM row

Accounting Firms Deloitte 'self-imposes exile' on government contracts to defuse PM row

2y Kevin Reed, Writer
Managing partner Q&A - the year ahead: Julie Adams, Menzies

Accounting Firms Managing partner Q&A - the year ahead: Julie Adams, Menzies

2y Kevin Reed, Writer
Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

Business Regulation Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

2y Kevin Reed, Writer
Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

Audit Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

2y Kevin Reed, Writer
New head of equity capital markets for KPMG

Accounting Firms New head of equity capital markets for KPMG

2y Stephanie Wix, Writer