New businesses should have their accounts reviewed on a quarterly basis, it has been claimed.
Figures from the Department for Business, Enterprise and Regulatory Reform reveal that as many as 20 per cent of start-ups fail within their first year of business.
Claire Savidge, business adviser and local adviser manager with Business Link, explained that entrepreneurs need to have their books looked over by an
accountant at least four times a year if they have no prior financial expertise.
Although Ms Savidge claimed that the frequency of audits depends on what stage a company is at and how quickly it is growing, she warned that reviews are needed on a regular basis.
For business owners who are "financial whizzes", perhaps less frequent reviews may be adequate, she added.
"But they certainly should have a six month review and not wait until the accountant says, 'here's your accounts, you made a loss this year'," Ms Savidge said.
© Adfero Ltd