Tax and accounting record audits
and compliance are big news in the UK at the moment, says the Financial News
That's because senior officials from leading accounting firms in the UK have just been grilled about their role in helping big companies avoid tax, says Reuters
Locally, there's also a big push towards tax compliance
, with the end of the tax year just days away.
And it's not an easy task. Dealing with company finances and accounts is one of the most important functions in a company and includes fixed assets, capital depreciation, cash flows, bookkeeping entries, annual financial statements, reconciliations, administrative accounting, tax and Vat.
One small mistake could cost your company thousands or expose you to an audit, says the Tax Bulletin
That's why it's not just up to your accountant.
Here's how converting to a Memorandum of Incorporation will benefit your business
Under the Companies Act
, your Memorandum of Incorporation
is a legal document that sets out the rights, duties and responsibilities of shareholders, directors and others within a company.
It'll help you avoid disputes between shareholders and directors, says Michaelsons
, and your company might not even need afinancial record audit.
And here's the biggest benefit – becauseone of the big changes in the new Companies Act
is that while it applies to all companies, from one-man companies to large multinationals, some only need to have independent reviews, while others don't need to have their financial statements checked at all, says the Tax Bulletin
It all depends on your company's Public Interest Score (PIS).
If it's below 100, an independent review can be done by anyone who signs off your close corporation financials.
So get your Memorandum of Incorporation
in place today to save yourself some accounting stress! And don't forget, you only have two months to do it, so don't delay!
To find out how to do your own Memorandum of Incorporation
in just minutes click here