Why compliance is about more than protecting your business from fines and legal action

Whatever the size and structure of your business, there will be regulatory business reporting that you need to comply with. There is no avoiding it. The consequences are quite clear – financial penalties for failing to adhere to statutory deadlines, and potentially legal action if this a persistent problem. As a company director you have a duty to act in good faith and in the best interests of the company. Failing to meet the company's compliance needs would be failing your duties as a director.

Given the consequences outlined, it's easy to view compliance as a necessary evil. Something you accept is part of running a company in order to avoid financial pain. You may believe there is no real value to the work involved.

That is not the case and we are going to explore why.

Many stakeholders rely on company accounts, verified and presented by an independent third party – your accountant. HMRC is one, as are your banks, investors, pension providers et al. Your company accounts, audits and various tax returns are your opportunity to tell your company's story. It is a window to open and let them look in.

Without this insight, they will not have the evidence to be in a position to evaluate and make decisions on their involvement with your company.

These statutory reports remove the guesswork from your own evaluations and give you the proof that you are on the right path and working towards achieving your goals. Regular reporting allows you to forecast and plan, moving the company forward in the direction you choose.

The reports can also help spot opportunities to improve the structure of the company which could save you money through tax efficiencies for example.