Compliance accounting involves the preparation of financial statements in a form that complies with the requirements of the Companies Act and the Financial Reporting Act. These financial statements are compiled in a manner such that they can also be used by bankers or other financial institutions in support of borrowing applications or facility reviews as well as meeting the requirements of Inland Revenue with respect to income tax return preparation.
The KGA approach to compliance accounting is to provide the most cost effective solution possible and this is achieved by working closely with clients so that there is a clear understanding of how cost efficiencies can be obtained.
Our approach generally is to ensure clients use general ledger accounting software so that transactions are captured on a timely basis throughout the year. At year-end, or more frequently if required, this data can be electronically transferred on to our system for producing year end financial statements or management reports. The KGA focus is on “value add” rather than consuming valuable time processing data. In most cases the capturing of raw data can be handled by relatively inexpensive employees who do not need to be qualified chartered accountants. With many clients we recommend the use of a part-time competent accounts person to handle internal accounting processes, under our direction if necessary, so that we at KGA can operate as an extension of the accounting and finance function and provide value at a reasonable cost where it counts.
