Remember what you did last summer? Well, we do! A study was recently conducted to focus on the lives that professional accountants lead. The participants were given auditing vignettes and expected to come up with an accounting judgement for every vignette. What would the judgment entail? Simple, their views on the financial reports of a company. Let’s hypothesize company X. They were tasked with deciding whether the financial reports of company X complied with the Generally Accepted Accounting Principles (GAAP). The findings? Well, the experiments indicated that the existence of a hypothetical relationship with a client impacts client relationship with accountant’s judgement. The level of negative impact dwelling in a long relationship where multiple transactions took place is unfathomable.
Another study was done on the repercussions of the lack of tax planning. The findings were that businesses tended to suffer major financial blows. Without tax planning, there is a sizable increase in taxable income. Consequently, the tax rate will also be high, there will be lesser control of taxes, and tax relief is minimized. Nobody would want that happening to them right? We’re sure you wouldn’t! Unfortunately, Company X also did not maximize on corporate finance that would help them maximize on shareholder value through both long and short term financial planning and implementation of various strategies.
Numerous scenarios become emergent due to the provision of poor accountancy, auditing services and tax investigations. For most businesses, this would lead to the end of the world. Luckily for you, you don’t have to go through all this since chartered accountants London can give a solution unto the problems identified. The accountants offer excellent advice on issues that affect all and sundry, whether you are behind a big corporation or working for an SME.