Do you recognise your own accounts?
Richard Murphy advises the director of a company on the presentation of accounts, and how to make sure the accounting data is comprehensible to the non-accountant.
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"Companies House is free advertising, and people do look there."
People look there when they are already thinking of working with a company. They don't look at random sets of accounts in hope of finding someone they can work with.
Another bizarre article from Mr Murphy.
"Companies House is free advertising, and people do look there."
People look there when they are already thinking of working with a company. They don't look at random sets of accounts in hope of finding someone they can work with.
Another bizarre article from Mr Murphy.
Sorry to disagree. You are taking a narrow view and are being unfair to Mr Murphy, in my opinion.
In my case, my main purpose in looking at accounts at Companies House is to identify the significance of competitors and to assess suitability for potential acquisition. Yes, we do "look at random sets of accounts in hope of finding someone [we] can work with".
I would also be impressed if I saw an impressive set of accounts with branding etc for a potential supplier or customer.
I like the suggestions made in the article.
In my case, my main purpose in looking at accounts at Companies House is to identify the significance of competitors and to assess suitability for potential acquisition. Yes, we do "look at random sets of accounts in hope of finding someone [we] can work with".
It does not sound like you are looking at random sets of accounts. It sounds like you are looking at specific sets of accounts. Accounts where you have identified companies of interest and would already know their contact details and website, thus not needing them "advertised" to you in those accounts.
I also find it hard to believe that a bit of branding would influence you once you've reached the point of looking at the accounts. Has anyone ever said "They have negative net assets, but their accounts look nice so let's buy them"?
I agree with Stepurhan. The article appears to be the product of a random thought generator.
If I'm looking for a potential client or service, I'd start with 'Google' not Companies House. What on earth would your search criteria be on Companies House? All you get there to search for are company name, number and names of directors. Good luck with that if you're looking for IT support in Hampshire.
Why would anything ever be available to view on the company accounts filed at Companies House about what the company does that wouldn't already be included in an infinitely easier to find website?
Does Mr Murphy follow his own advice, I wonder. Are his accounts embellished with logos, lists of services provided and biographies and pictures of the directors? And if they are, is any of that missing from his website?
Bizarre indeed.
"accounts have a purpose, and one of those purposes is to very definitely help the company sell."
How often has anyone reading this bought anything based on a look at a set of company accounts? I'm looking to buy a new car so I compare the accounts of BMW and Mercedes, because there's no information more readily accessible elsewhere?
"It suggests that accounting is seriously out of line with commercial thinking"
Really? I'm not a marketing expert, perhaps Richard is, so could he show us any links to marketing strategies based on using a company's accounts to market their products or services? I assume that if Richard is 'in line' with current commercial thinking that's where he picked up the idea from.
Unless everyone is out of line with Richard's thinking?
Having blessed the world with his musings as a "political economist" and a so called "academic" it is our turn to put up with his nonsense
One does buy say building contracts/tendering partly on accounts, however it tends not to be accounts dragged from Companies House but accounts requested from prospective construction companies.
I do sometimes look at things as silly as even the names of the accountants who prepared the accounts, is it M Mouse Accountants or someone I actually recognise.
I review quite a lot of accounts in a year but of course for most I need to get "real" accounts direct from them as the stuff on Companies House is a waste of space re smaller entities.
Not fussed re a logo but web address could be useful, especially if trading name differs from company name, names of accountants an solicitors may add something and whilst pictures of directors are likely pointless, and I can get names of them anyway on Companies House, a CV either in accounts or on website can add value.
However what we do not want is quoted plc reports where everything your never wanted to know is in a graph or pie chart. There ought to be short form basic published accounts and the Report as a distinct document, if you want to print these things you kill forests (and I do like to have printed accounts and go through them writing in the margins)
Maybe I have missed some undercurrents elsewhere, but I am surprised at the hostile tone and ridicule of some of the responses. What has Richard Murphy done to people to merit it?
I saw another thread recently where someone asked a question, was asked for further information and then responded with something like "you have all the information, why don't you answer the question?" What is this site coming to?
All valid points, each of which adds to the quality of the accounts and to the costs of preparation. If the directors are engaged enough in using the FS as a communication tool and are prepared to incur the small amount of extra cost, then fine. The reality in many cases is that they're not. Whether they should be is a different debate.
Using FS to generate engagement is an area that smaller charities are getting better at. I did an exercise a few years ago where just the Trustees' reports from different charities (charity names redacted) and we were invited to consider which one we'd be most inclined to give money to, solely based upon their description of their aims and activities.