Incorrect accounts can lead to hefty penalties by HMRC, so it is vital that this is one area of a business that is given the attention it deserves.

Here at One Abacus, we understand the issues facing small business owners who may have little or no experience in accounting and who are not in a position to hire a full-time accountant. That is why we offer accounting and bookkeeping packages, and which mean business owners do not have to worry about this part of their business.

Fraud Charges

News that three former directors of Tesco have been accused of fraud and false accounting has shocked the business world. John Scouler, Christopher Bush and Carl Rogberg have all been charged with false accounting and fraud by abuse of position.

Charges brought by the Serious Fraud Office allege that the trio falsified digital accounting records by ‘inputting of and/or reliance on commercial income figures which gave a false account of the financial position of Tesco’.

If found guilty, all three men could be facing a prison sentence of up to ten years for fraud by abuse of position and up to seven years for false accounting. All three entered ‘not guilty’ pleas.

Importance of Accurate Accounting

The Tesco scandal was discovered when the company revealed that profits had been overstated by £263 million because of an error in relation to the booking in of supplier payments. Whether this was human error or fraud remains to be seen, but with investigations still ongoing, more people could be facing charges.

Incorrect accounting is a serious offence and one that can lead to prison sentences, as highlighted in the above story. It is important, therefore, that business owners do all they can to ensure their bookkeeping is accurate.

If you are a new business owner, and the idea of doing your bookkeeping fills you with dread, you can take advantage of One Abacus’s competitive packages. Whether you are a sole trader or own a limited company, you will find the perfect package here to suit your needs. Call us today to learn more about our hassle-free accounting.

Source:

• https://www.theguardian.com/business/2016/sep/22/former-tesco-directors-plead-not-guilty-fraud-charges-accounting-court