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Thread: Please provide audited financial statements

  1. #1
    Site Caretaker Dave A's Avatar
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    Please provide audited financial statements

    The list of little pleasures when registering as a supplier with corporates grows longer - and more invasive. I'm now regularly seeing "audited financial statements" as part of the information requested.

    Hmm. I think I'll have a signed confidentiality agreement first, thanks.
    The trouble with opportunity is it normally comes dressed up as work.

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    Platinum Member Marq's Avatar
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    It seems the traditional business world is upside down.

    There was a time when the supplier would be asking for all this info, to look after a potential bad debt scenario.

    Now with all the bad service, fly by nights and plenty competition, payment is not in the forefront - can you deliver is.

    Buyers Market in a recessionary world, I can well believe this scenario, except that its been going on for some time prior to the recession.

    Another promise through the ages has been the object of the paperless office. Now you have to carry a whole tree with you in the form of an up to date business CV and employ an extra person to do the due diligence on everybody one comes into contact with.

    What happened to trust in a simple business world? This viral human being condition where the more individuals that come through the more individual the individuals want to be..........oh sorry I digress...

    So there we are, before one can say 'scam in malta' you have to drop your rods, prove your credentials and flash all just to pick up some form of income. Its a skande I say.
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    Moderator IanF's Avatar
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    I can understand this a tiny bit, the sign shop next door to me has gone belly up. It took 4 years longer than I thought. I used to see the same sign coming and leaving 4 times.
    I always worry about will the buyer say I either make too much or too little just depending how you structure salaries etc for tax. I normally ask for their financials as well and say if you are worried about me then I am worried you.
    Only stress when you can change the outcome!

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    Site Caretaker Dave A's Avatar
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    Quote Originally Posted by IanF View Post
    I always worry about will the buyer say I either make too much or too little just depending how you structure salaries etc for tax.
    Well, that's just the thing. I wonder if there is much thought going into this.

    The difference between the financial reports of public vs private companies is chalk and cheese. Public companies tend to release financials that are 75% comment to manage interpretation and are relatively light on detail.

    Private companies tend not to worry about all the wordy fluff - and tend to focus on tax efficiency rather than generating dividends that will push out share values. They also tend to be far more transparent in terms of the cost line items because there is no particular concern that they're going to be read by competitors to compare relative cost efficiencies (and I expect auditors are trying to look like they've earned their fee ).

    So far I've only released them when there is a confidentiality agreement in place and it hasn't been a problem. Normally they go "That's fine, just send us all the other info and we'll register you anyway" and that's the end of the matter.

    But it has made me think about maybe setting up my audited financials more along the lines of a public company in future.
    The trouble with opportunity is it normally comes dressed up as work.

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    Quote Originally Posted by Dave A View Post
    The list of little pleasures when registering as a supplier with corporates grows longer - and more invasive. I'm now regularly seeing "audited financial statements" as part of the information requested.

    Hmm. I think I'll have a signed confidentiality agreement first, thanks.
    Fortunately "audited Financials" will not be compulsory for PTY's in future.
    Even if accountants are qualified to audit, the stringent regulations and risk attached to statutory audits make many auditors shy away from "auditing". Just give suppliers a compilation report, which is a summary of your own financials, and have it signed by your "auditor". I have never experienced any difficulties with banks, suppliers and government, with these kind of reports.
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    Platinum Member Marq's Avatar
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    It also just occurred to me that one of the given reasons for being 'compliant' is to be able to deal with government. Now at last count, not one of the government departments could come up with decent unqualified AFS, if they came up with one at all.

    So I would think to be in good company, unaudited manipulated compiled management reports should be quite acceptable.

    Another option could be to produce a set of basic unaudited accounts with a note to say, audited account to follow when ready. This will all get filed, never to be looked at again and you should be on the system.
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    Site Caretaker Dave A's Avatar
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    Funny you should mention that - as it happens the one that had me asking the question is one of those government owned jobs that is looking for a substantial handout from treasury to get through all their red ink
    The trouble with opportunity is it normally comes dressed up as work.

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