When you hear the name ASDA, you probably think of the weekly shop. But behind every big supermarket chain sits a huge finance operation. The accounts for a business that size are a different world from the books of a local shop or a one-person trade.
So what makes accounts for large businesses so complicated? Here's a plain English look.
Lots of companies, not just one
Big businesses are rarely a single company. They're usually a group, with a parent company at the top and lots of other companies underneath it. Some of those might run shops, some might handle property, and some might deal with fuel, online sales or other parts of the business.
Each company in the group normally has to keep its own records. That's a lot of sets of books before anyone even starts on the bigger picture.
Putting it all together
Once each company has its figures, the group usually has to produce consolidated accounts. That means adding everything up as if the whole group were one business.
It sounds simple, but it isn't. Money and goods often move between companies in the same group, and those deals have to be stripped out so nothing gets counted twice. Getting that right takes time, care and a lot of checking.
Audits
Large companies have to have their accounts audited by an independent firm of auditors. The auditors go through the numbers and the systems behind them, and they need proof for what they see.
For a big group, an audit can involve teams of people working for weeks or months. The finance team has to be ready to answer questions and show where every figure came from.
VAT and payroll on a big scale
A small business might file one VAT return a quarter. A large group can have several VAT setups, and if it trades abroad, it may have to deal with tax rules in other countries too.
Payroll is the same story. Paying thousands of staff, with different contracts, hours, pensions and tax codes, needs proper systems and people keeping an eye on them all the time.
Stricter reporting rules
Bigger companies have to follow more detailed accounting standards and publish more information. That can include strategic reports, details about directors' pay, and other reports set by law. Some large companies also have to report on things like their tax strategy or how they pay their suppliers.
Deadlines are fixed, and getting it wrong can be costly and very public.
How that's different from a small business
The good news if you run a small business? Your accounts are much simpler. You probably have one company, or you're a sole trader. You don't need group accounts, and most small businesses don't need an audit at all.
That doesn't mean it's easy, though. You still have tax returns, VAT, payroll and HMRC deadlines to deal with, often while you're also doing the actual work of running your business. Big companies have whole departments for this. You've got you.
Where we come in
That's what we're here for at Crooks Books. We're fully qualified, local and independent, and we help small businesses with self assessment, bookkeeping, limited company accounts, payroll and VAT returns.
We talk in plain English, with no jargon. Our fees are fixed, so you know where you stand. And we really understand HMRC rules, so we can help you save as much money as possible.
You don't need a finance department the size of a supermarket's. You just need someone on your side. Give us a call on 0800304050 for a free first chat.