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• Administrative procedures are
perceived as being cumbersome by
most business owners. However, it is
very important to be extremely
accurate in reporting for two (2)
main reasons. Primarily to be in
conformance with the requirements
of laws and regulations, and also
because reporting all the financial
information needed to monitor the
health of the business.
• Accounting records must be available
for inspection at all times, and
explain transactions to facilitate the
preparation of financial statements.
The records are usually kept at the
registered office of the company.
• Companies are obliged to keep
proper records which give an overall
view of the company’s results and
transactions, and to file an annual
return and statements with the
registrar of companies.
• Normally, companies utilise
accounting software in order to
record the day to day transactions.
• Companies are required to make an annual
inventory containing a description and
valuation of the whole state, whatever may be
their nature and origin. An inventory is made
up to assets held for sale in the ordinary
course of business, in the process of
production for such sale or in the form of
materials or supplies to be consumed
• Every company shall prepare for each
accounting period individual accounts
comprising of the balance sheet , the
profit and loss account for that period,
the notes to the accounts and any other
financial statements which may be
required by generally accepted
accounting principles and practice.
• Independent auditors are to be
appointed to hold office from each
annual general meeting to the next.
• Auditors report must be drawn up in
accordance with generally accepted
auditing standards and should state
whether in the auditor’s opinion the
annual accounts have been properly
prepared in accordance with the
company act.
• Every company shall retain the accounting
records for a period of ten years at the
company registered office. Companies are also
required to submit to the Registrar of
Companies a copy of the annual accounts.
These must be generally be accompanied by a
copy of the auditor’s report and the director’s
• Every company is obliged to draw up its
financial statements in accordance with
International Financial Reporting Standards
for each accounting period. This includes the
financial statements, audit report, director’s
report and the notes to the accounts
• However, certain companies designated as
“small companies” under the Companies Act
may draw up an abridged balance sheet, an
abridged layout of the profit and loss account
and abridged notes to the accounts
• The company must ensure that its Annual
Financial Report is made available to the
public at the least of four (4) months after the
end of each financial year, and that it remains
publicly available for a period of at least 5
years. The information shall be deemed to be
available to the public when published in one
or more widely circulated newspapers and in
an electronic form on the website.
• Companies and individuals are required
to issue invoices or fiscal receipts for
goods and services delivered to their
customers. These documents must be
issued on paper or electronically at the
time transaction, or if the recipient is a
company or professional, within the next
month They must kept on file like 5 years