Simpler reporting for the smallest businesses
Two weeks ago we, together with some Xero Partners, made some comments about UK’s Department of Business Innovation & Skills paper ‘Simpler reporting for the smallest businesses’ which you can read in more detail here and here, but which in summary called upon the UK Government to re-think its current proposals and, actually, to think much more broadly about what the UK small business community really needs to power the UK away from the edge of the recession it remains precariously close to.
The ICAEW’s Reporting Faculty has now published its draft response which you can read in full here, but here’s an excerpt which seem to chime with our view that better operational reporting is key.
“We believe that the information requirements of management should be the primary driver of business record keeping. In order to effectively run a business, to maximise the return on investment and to ensure that adequate funds become available as required, management need to have an awareness of the amount and timing of outstanding debtors and creditors and of the value of capital tied up in stock.”
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