Let’s Explain Box Accounting.
If your company administration looks a bit like the image above, you may well be the ideal client for box accounting.
For many small businesses, the job of running your business is hard enough without having to try and administer income and expenditure; and what invariably ends up happening is a box becomes the file into which slips of all shapes and sizes are thrown, and then a bunch of statements for good measure. At the end of your year, you need to work out what your financial position is; and remember money in the bank does not mean you are making a profit. You also need to ensure that you are compliant with a raft of legislative requirements, for example do you require an independent review of your financials.
What is ‘Box Accounting’? A box of slips, statements, and invoices; generally handed to an accountant from which to produce; annual financial statements. Not to be confused with black box accounting, and sometimes referred to as shoebox accounting.
It is extremely difficult to provide an estimate for this service, since a great deal depends on the size of the business and the state of the files (or packets, bags, and boxes).
We would require some detail on how you are ‘filing’ your documentation in order to provide an estimated cost. A little bit of ‘housekeeping’ could make a big difference to the amount of work that we will need to do to arrange and sort your slips, statements, invoices, agreements etc. So if you have some time on your hands, then start gathering the information required by LSA to ultimately provide you with a set of financials and get it into a logical arrangement.
It is also important to note that changes to the Close Corporation Act require that cc’s are now also bound by the same requirements for a financial review. This is if your PSI score establishes a need for one.