COMPANY SECRETARIAL SERVICE.

 We help organizations update their compliancy status with the registrar of companies URSB and also reconcile disclosures in their Tax returns with returns it has filed with the registrar of companies URSB.

Company secretarial services are one of the most overlooked services by management of most organizations yet failure to comply can cost a company a lot of money in Penalties and interest on penalty when noted and raised as queries in assessments by the authorities. The income tax Act and the Companies Act all emphasize on proper records which should be filed to them URA and URSB which records should agree.

Compliancy outcomes can tremendously improve the quality of management in terms of decisions making, implementation and redirecting the organization safely out of danger of authorities (penalties and fines) and right into the opportunities that an economic environment has to offer.

Also before I go into the depth of this service, let me first explain what a company secretary’s secretarial duties are;

When you register an organization there are rules and regulations called company procedures which you are expected to abide with when managing the affairs of your organization. The basic ones are filing Annual returns, Appointing Auditors and holding annual general meetings, which you might have done by now.

What I’ve just explained is the basic company compliancy procedures. An organisation needs to watch out for compliancy activities that if not dealt with can cause the organisation to incur  liabilities more specifically URA. This usually occurs when they examine the information that you have disclosed to them in your Tax return and demand for evidence.

The income Tax law requires that companies or organization must keep proper records. Now reference to proper records does not only refer to invoices, receipts and LPOs , agreements and so forth, it  includes other supporting documents that need to be filed with the registrar of companies at the Uganda registration service bureau.

These documents will defend transactions that have been disclosed or entered in accounting records of the company or organization. Decisions of actions taken or to be taken by the company are arrived at by way of resolutions either in an Annual General Meeting AGM or Extraordinary General meeting EGM. This does not only apply to big companies, it is for all companies that are legally constituted under the Uganda companies Act.

 Therefore, transactions or any other activities that the company or organization finds its self undertaking should follow these procedures.

For example if you filed say an income tax return to URA and in it your financial statements shows that the company was not paying rent simply because the directors of the company owned the property and had leased it to the company, this has to be supported inform of resolutions made in an AGM or EGM to which the document should have been filed to this effect with the registrar of companies as the law requires it. Failure to abide by this is an open check for the Tax man URA to charge you with falsification of information filed in your income Tax return under section 142 of the income tax Act. You can further be charged with failure to keep proper records under section 139. To which the penalty is to pay twice the amount of tax payable for that financial year plus interest.

Now you should not get worried. If you do not have a person with expertise about such matters in your organization. A professional practicing account can do it for you.

Word of caution though, that not all accountants have this expertise, it is those Accounting firms who have developed strength through time tested success of correct application of this expertise like JW & PARTNERS who can help you better.

But, how do you tell who is competent to help you with your company secretarial challenges?. It is simple; it’s the way they explain it(Company secretarial services) to you just like how I’m doing now. So if your accountant or Auditor has never raised this as an issue while with you do not bother asking him about it he will let you down.

It’s not enough to just claim that we also offer company secretarial /registration service like most individuals and firms are doing, just visit their websites and you will see what I’m talking about. The danger in using the services of such people is that vital company procedures with serious tax implication and severe penalties are overlooked because of their lack of in-depth knowledge of the service.

We JW & PARTNERS have been in this business long enough not to allow such simple professional oversights to occur to you. So what are you waiting for SIGN-UP for the service Now. Call or write.

There is also another perspective of the same. let’s say you made resolutions and properly filed them with the registrar. Where the tax man will try to make you pay, will be in your accounting records(system). Remember your records with the registrar of companies will only support your final financial statement reports through your accounting system.

 Take this example; if in one of your resolutions the directors had resolved to increase the company’s liquidity by borrowing from private individual like family members and friends and also through financial institution. Your accounting records should show how these monies come in and how it was spent. Failure to show this is failure to keep proper records. Remember again in the auditor’s report of your audited accounts; it states that ‘’The financial statements are in line with the accounting records’’. Failure to prove this to be so will be interpreted by URA as falsification of records under section142.of the income Tax Act.

Companies and organizations who have suffered this full scale interpretation have been severely crippled to being non existence. Some of them will make blanket statements that taxes are putting them out of business yet the problem is compliancy. So don’t be like them make that wise decision now and SIGN UP for this service it will be worth it.

This is Our Approach in serving you;

Immediately you SIGN-UP, we start with first carrying out a thorough examination of your records to URA over at least five years because that is how long URA expects you to keep these historical records, and then look into your account with the registrar of companies or URSB to determine, to what extent you were compliant with the basic company procedures and filling of resolutions.

                                

 e-mail.jwandpartners@gmail.com, 0704024835 Managing Partner John Ochola,    0772 564808 Director Business Advisory Patrick Omony  Office line; 041-4-256408.

HOW TO SIGN UP FOR THE SERVICE.

We have two categories of clientele that you can choose to be serviced as;

a)    Regular Clients

b)    Retainers Client

Regular clients Category;

This is a one off or walk in client. He is charged per the assignment. Say if he has a one off transaction or undertaking that he/she wishes to be advised a bout company procedures to follow. He receives a quotation for that assignment.

Retainer Client Category;

This is long term. Here a client signs with us a contract where he pays an agreed monthly retainer fee for which he receives unlimited consultations at no extra charge for all his company secretarial needs. This may range from acquisition of credit, managing of company assets, mortgages, expansions etc….

Thank you

Regards

Patrick Omony

Director Business Advisory

JW & PARTNERS 0772 564808.

Other services we offer that is of great benefits to your company are;

a.    Tax Accounting and Tax Advisory service

There is Tax accounting and Management accounting and these should not be confused;

If a director of accompany withdraws money from the company to go an undertake duties of the company. For management accountability purpose it can be captured as money paid to director x, this from a tax point can be interpreted as income to the director to which it will be added back by the tax man to be taxed as PAYE or income tax in the director’s return. Usually this is discovered when URA request for your accounting records as they enforce compliancy.

This therefore means that companies should start accounting in their books of  information in such a manner that will a void more tax liability. Your accounting packages should be configured to cater for this. You can also sign up you company for this service Tax accounting and Tax Advisory service.

b.    Accounting Information and control management service.

In this we help you set up an acceptable and efficient way of how you can capture and manage your accounting records for both management and Tax purpose. This will came in handy especially when objecting to TAX assessments raised by URA.

GET THE BEST FROM YOUR ANALYSIS BOOK

The ever fast moving business environment, has caused many to seek efficiency through automation and the clever selling techniques by vendors of accounting packages, has led most organizations to abandon hard cover analysis books prematurely and opt for soft ware accounting system to which to their dismay are wondering why it cannot generate the information that they need.

These software packages are greatly underutilized because most organization didn’t understand the fundamental principles of the analysis book.

An analysis book is a good part of an accounting system and if properly designed to capture information, can help shape the way source documents like receipts, vouchers and invoice are written, prepared and filed. 

From the analysis book one can know so much about how the business is running which is very critical for planning.

There is always a disparity between the financial statements of an organization and the analysis book format which shouldn’t be that case, given the fact that financial statements are  prepared largely from analysis books. 

An analysis book may not closely follow the standard accounting principles which is why organizations will differ in how they design their analysis books to fulfill their management objectives. That being said, the analysis book format should not violate the core accounting principle otherwise it will cease to serve its purpose of meaningfully reporting events that have transpired in the enterprise or organization.

Any organization thinking of automation or buying accounting software, should first of all understand the principles of the analysis book , tailor one for its self then upgrade its accounting system by automation.

An analysis book will capture receipts and payments and classify these incomes or expenditures in such a way that it reconciles easily with your budget and strategic plan. The concept of the analysis book will help an organization design meaningful budget lines, differentiate capital expenditures from current expenditures as transactions are taking place in real time as well as showing you your cash flows and what money is at hand and at bank at any one time (t).  

Developing a format in the analysis book is not quite that simple and JW & PARTNERS helps entities in this area.

Like all our other services, formatting an analysis book is a service that JW & PARTNERS does very well, and we would be happy to service your organization in this respect.

We do format and develop manuals on how the analysis book should be used, very important for reviews and training of new personnel.

Prepare Standard Financial statements and Books of Accounts

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Maintaining well written books of accounts is behavioral pattern of successful enterprises.

Unfortunately many owners of businesses and organizations do not fully understand what it means to have PROPER records and well written books of accounts. leaders of organisations are constantly faced with tough decision on planning and development of strategies. They all would admit that decision making is much easier with well processed information of the daily activities at hand.

The income Tax law section 152, requires every firm, company or organization to keep proper records and books of accounts. It levies a penalty for not complying amounting to twice the tax payable in that year. See our Tax accounting proposal. Wrong classification of transactions can lead to higher tax liability when expenses are disallowed in an objection to estimated Tax assessment.

But besides that, it is vitally important to note that the effectiveness of management decision  on how an organization should be driven to achieve its set goals, is strongly rooted on the quality of accounting information that it captures and the kind of reports it generates.

Someone once told me, that it was a waste of money to pay someone to write for them books of accounts. His reasoning was, that if an entity strictly kept its records of expenses and incomes, then it should be able to post (receipts, invoices and vouchers etc..) them in books of accounts and generate an income and expense statement report thereafter to reveal to him his profit position.

Now, without guidance of a professional business accountant to help process this raw data into useful information, then such an entity is most likely to end up with a profit and lose statement report that looks like the one below.

Income Statement as at 31st Dec 20xx
Income:
Sales	21,584,890
Expenditure:
Rent	240,000
Salary	400,088
medical	1,340,000
Transport	13,000,000
casual labor	269,000
Advertisement	340,000
Printing and Photocopy	900,800
Announcements	64,000
Audits	73,000
Accountancy	889,000
consultancy	50,000
Total Expense	17,565,888
Profit/loss	4,019,002

 The problem with this kind of report is that it hides a lot of  valuable Information about how the loss or profit was arrived at. And as such, decisions on how to maintain or grow this observed profit would be based on limited information hence can not be relied upon to cause positive change. 

For effective decision making, an entity needs to have a profit and loss statement that looks  like the one below.

Income Statement as at 31st Dec 20xx
Income:
	Category 1	20,000,000
	Category 2	1,350,000
	Category 3	234,890
	Total	21,584,890
EXPENDITURE
Administrative cost
	Rent	13,000,000
	Transport	234,000
	Medical	560,000
	Total	13,794,000
Marketing cost
	Transport	400,000
	Allowance	370,000
	Photocopying	890,000
	Total	1,660,000
Operational cost
	Transport	654,000
	Casual labor	1,000,000
	Medical	206,000
	Total	1,860,000
TOTAL EXPENDITURE		17,314,000
	PROFIR/LOSS	4,270,890

This can then be presented in summary format as below.

Income Statement as at 31st Dec 20xx
Income:
Category 1	20,000,000
Category 2	1,350,000
Category 3	234,890
	21,584,890
Expenditure:
Administrative cost	13,794,000
Marketing cost	1,660,000
Operational cost	1,860,000
Total expense	17,314,000
Profit/ loss	4,270,890

You can clearly see that this report brings out a lot of quality information for managers and decision makers of an organization to make impactful decisions with turn a round results to drive the firm, company or organization to supersede its set goals and objective with minimum effort.

Analysis of the entity’s performance can be done by comparing different categories of expenditures against incomes received say for instance; your marketing expenditure can be analyzed to explain the incomes. With the same information, also analyze operational expenditure to establish a trend and plan how to cut costs.

 This report format can help an organization make income projections and the expected expenditures with fair accuracy during budgeting.

 

A decision to Reinvestment profits or bring in more money can be made with identifiable priority areas of expenditures that would yield maximum return on investment (RoI).

This therefore requires that transactions be captured in the source documents with enough details and narratives to ensure accurate definition and correct posting in the category created.

HOW TO DEVELOP AN INFORMATIVE INCOME STATEMENT FORMAT;

By following these simple steps one can establish an effective record capturing and processing system.

1.    Obtaining a comprehensive understanding of your entity;

A comprehensive understanding of what the organization is doing, the industry it is in, the business sectors in terms of its services or products, business model, what are its fixed cost, who are the major and minor clients its servicing or targeting

This will reveal to you the income and expense categories to which sub headings will be assigned.

   i)    The incomes can be categorized as

       Sales category 1,category 2,micellenious.. etc  while

   ii)  The Expense can be categorized as;

        Administrative expense, operational expense, Marketing expense, sales and distribution expense etc…

2.    Design A chart of Account:

A chart of accounts (COA) is a created list of the accounts used by a business entity to define each class of items for which money or the equivalent is spent or received. It is used to organize the finances of the entity and to segregate expenditures, revenue, assets and liabilities in order to give interested parties a better understanding of the financial health of the entity.

The list can be numerical, alphabetic, or alpha-numeric. The structure and headings of accounts should assist in consistent posting of transactions. Each nominal ledger account is unique to allow its ledger to be located. The list is typically arranged in the order of the customary appearance of accounts in the financial statements, balance sheet accounts followed by profit and loss accounts.

3.    Designing the structure and Nature of Book entries to be kept:

The nature of records that an entity will capture for compliancy and management purpose, will determine the kind of books to be put in place.

A smaller organization will require fewer and general purpose book entries that will capture more than one form of records therefore reducing the number of books to keep.

These books will set the bench mark on which configuration of a soft ware will be done should the entity so wish to automate. The kind of software application to be bought will be guided by these books of account.

 4.    Designing of source documents and procedure of use;

The source documents(receipts, voucher, invoices, LPO etc…) should be designed with procedures that will enable as much detail of desired information and narratives from a single transaction or activity. With good narratives captured, inaccuracies due to wrong definition, classification and posting of transactions can be corrected through a review of transactions posted.

If your organisation or business needs to have its accounting information formatted as described earlier, feel free to contact us

We serve all sizes of organisations from one man company to large corporation. The principle is the same and there for cuts across.

If you’re interested, Sign up for this service that we are offering to you.

Call or write to us; For inquiries write to jwauditors@gmail.com, for serious business write to jwandpartners@gmail.com or call The Director Business Advisory Mr Omony Patrick on 0772 564808, The firm’s Managing Partner Mr Ochola John 0704 024835 office line: 0414 256408