Why does a business need accounts?


Most businesses are required to produce a set of accounts at least once per year. These accounts will form the basis for the tax return which tells IRB how much tax is owed.
Aside from accounts being a requirement, as a business you can benefit greatly from carefully considering the information within your set of accounts. Accounts can tell you how your business performs and may highlight areas that need to be addressed. There is a vast amount of information contained within a set of accounts that can be utilised to improve your business.
Accounts can be produced as frequently as you need them. So, if you require frequent up to date information about the performance of your business then monthly management accounts will possibly be best suited for you. However, if your business is very small and you have a rough idea of how well you are doing then you may only want the statutory annual accounts.

 



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