In the fourth article in the major new series “The key numbers every practising accountant needs to understand and act on”, Steve Pipe explains why accountants feel annual accounts are fundamentally flawed and what you can do about it.
A few years ago I surveyed 250 accountancy firms and found that 73% of their partners (i.e. the people who make their living producing annual accounts) acknowledged that there are at least five fundamental flaws in annual accounts.
Two weeks ago I repeated the survey with 50 more partners and found that nothing had changed.
Of course, 73% of accountants are not saying that accounts are wrong, don’t add up or don’t fully comply with all the relevant laws and reporting standards. What they are saying is that annual accounts are of little or no use to the businesses that are forced to pay for them since they don’t give business owners the information they really need to drive their businesses forward.
Find out more about the 7 key numbers at The Accountants Conference 2011
Steve Pipe FCA is a leading strategist on commercial issues and opportunities facing accountancy practices. You can see him in action at The Accountants Conference 2011 on 23 June