IVA annual review when in a ltd company

[chairmanmiaow]

Hi,

If I understand correctly, if you are running a business through a limited company, your annual review is based on going through your annual accounts (as submitted to companies house) with your IP, and working out if you can reasonably afford to take more profits out via a dividend to increase your contributions to the IVA.

However I'm slightly confused as annual accounts often aren't completed and submitted until 9 months after your year end. How do IPs deal with this time lag? Also how do you deal with the fact that business accounting year end and IVA annual review date may not coincide?

CM

[catullus]

Management accounts can be a great help!

[chairmanmiaow]

Management accounts can be a great help!

Based on the bookkeeper of my previous business's performance, I wouldn't want to commit to anything from management accounts. They usually ended up telling a completely different (and usually starker) story once a proper accountant had managed to go through them at the end of the year and make sure everything had been entered, posted and reconciled properly.

There's probably a lesson there to get your accountant to take a look at stuff more often!

[catullus]

No reason why a deal can't be done in principal to be adjusted by the final audited accounts.

Sounds like you might need a better book keeper, the difference really shouldn't be that large and, anyway, your accountant could look over the management accounts to ensure that there were no errors of principal.

[chairmanmiaow]

No reason why a deal can't be done in principal to be adjusted by the final audited accounts.

Ok, that makes sense.

Sounds like you might need a better book keeper, the difference really shouldn't be that large and, anyway, your accountant could look over the management accounts to ensure that there were no errors of principal.

Agreed - unfortunately poor financial management (amongst other things) has already meant that particular business is in the midst of being wound up.

I'll be wiser next time!

CM