Annual Confirmation of Accounts

The annual confirmation of accounts is not a particularly difficult task, though it is important to ensure that the accountants have completed their tasks in an appropriate and timely manner. It is often the case that accountants will receive requests from individuals or businesses for the provision of their services on a one off basis, such as to improve their credit file. However, it is more common for clients to require an annual accountancy service in order to maintain or make changes to their accounts.

What is Annual Confirmation

Most accounting firms will provide their clients with the information they need on an annual basis. In addition, many firms will also provide an online accountancy package, which can be availed of free of charge. This online package includes general advice and instructions on how to make entries, as well as the instructions and forms required. All documents and reports provided by accountants are completely accurate and up to date, as ordered.

The process of obtaining an accountancy service has changed over time. Previously, accountants would send out letters or fax copies of relevant records to their client or if requested, send a written request. UK accountants' Code of Conduct should be adhered to in order to protect the interests of clients. In addition to this Code of Conduct, written agreement would be required by both parties, and the financial document would be signed by both parties in front of an accountant experienced in handling financial matters.

At this point in time, it may become necessary for accountants to arrange for a meeting with their clients. In this instance, a UK accountants' Code of Conduct would again need to be adhered to. When meeting with an accountant, accountants are expected to use best professional practices. They are expected to conduct themselves in a courteous, professional manner. This may involve asking questions relating to their client's business model, in order to gain a better understanding of the financial records of the organisation. An accountant is also expected to provide regular updates on the accounts of the organisation, to help management understand the trends and patterns.

The Importance of Annual Confirmation

The Code of Conduct for accountants in the United Kingdom states that: "any contravention of any part of this code or of any rule of this code shall be constituting an offence." It is vital that accountants remain actively involved throughout the year in the provision of advice to their clients. The latest developments within the financial services industry have brought about some significant changes to how accountants conduct themselves. For instance, it has become increasingly important for accountants to utilise social media. Accountants must ensure they have a social media profile which is visible and active throughout the year.

While most accountants in the United Kingdom are expected to meet these requirements, some accountants choose to self-reteify. Self-reteification requires accountants to submit information on their own schedule. This may include submitting relevant documentation, speaking to clients, attending seminars or workshops, attending meetings or attending exhibitions. Self-reteification is therefore not compulsory. In case an accountant chooses not to participate in self-reteuction, they are obliged to provide externally all the information required by the UKBA.

How to Get the Annual Confirmation Statement

The Code of Conduct for accountants contains a number of indicators and requirements that are used by accountants to determine whether they have fulfilled the requirements of their annual confirmation of accounts. These include the requirement that the accountants to undertake a minimum of three of the following activities each year: preparation and submission of the annual account; compliance with applicable regulations and rules; providing accounting advice to clients; compliance with the code of practice concerning accounting matters and principles. Compliance with these measures is further broken down into three key areas: internal control measures; protection of assets and liabilities; and proper audit and accounting practices. An auditor is required by the UKBA to audit the companies' compliance with the Code of Conduct for accountants. Auditors are also required to submit annual reports to the Board of Directors on the progress of their examination of the compliance measures.

This is important as it provides the public with a general idea of the accountancy profession as a whole. It is the general nature of the obligation of accountants to make annual confirmation of accounts that the public can rely on. The responsibility of the accountants to provide a correct and complete account is one that is legally obligated and cannot be taken away lightly. If an accountant fails to provide a correct account of the penalties that can be enforced are severe. It is therefore essential that all accountants meet their obligations and fulfill their responsibilities promptly.