The law on the duty to prepare, lay and deliver accounts.

Economic crisis is not the cause of business collapse

Many businesses today have been brought down not only by the global recession but also by mismanagement. It is not in order to assume that the global economic crisis should only be working against your business. Many managers who are failing today are blaming the bad economic conditions for their poor performance. A good business manager should be able to look for effective ways of handling a bad situation and getting the best out of it.

One of the most deceiving business ideas is that by putting your eggs indifferent baskets, you are going to be successful. Most of the managerial trainings include what is commonly called ‘portfolio management’. This theory supports the idea of investment diversification. This is why managers think that during bad financial moments for the business, they need to diversify their investments in order to reduce the risk of losses. This may not be a solution if the management style is wrong. A poor manager will still fail even in a diversified portfolio.

Many are left wondering about what they should do if diversification is not working. The truth is that diversification should only be left for those who are not sure of making it in one line. Instead of diversifying your investments, you should be thinking of specialization.

You should be looking for the best business strategies that can make you a king in your line of operation. Unfortunately, many business managers view success as only retaining some profits for the business. Very few people are endeavoring to be the most outstanding businessmen.

Tuesday, October 6, 2009

The law on the duty to prepare, lay and deliver accounts.

At one time, the keeping of accounts by a company was considered merely as the domestic concern or an in-house affair of the company and its stakeholders. But that is no more because the modern legislation has been secured to expose the financial affairs of a company. Publications of the accounts sis now insisted upon to provide shareholders with all the necessarily information of the financial position of the business in a form that they can understand and also due to the fact that it is a matter of public importance for large companies.

The author of this article therefore tries to expose the accounting records that must be kept by a company. Under the companies Act, records must be sufficient to show and explain the company’s transactions. This means that such kind of accounts must disclose with reasonable accuracy, at any time, the financial position of the business. They must also enable the directors to ensure that any balance sheet or profit and loss account prepared by them complies with the requirements of the companies Act.

Accounting records must be kept by the company’s registered office or at such other place as the directors may think fit, and must at all times be open to inspection by company officers. In respect of each accounting reference period of a company, the directors must lay before the company in the general meeting a copy of the profit and loss account, the balance sheet, auditors’ report and the directors’ report. These are expected give a fair view of the business transactions.