Experts tip on keeping clear financial records

Experts have said well maintained financial records help analysts and investors to value companies by encouraging the implementation of international financial reporting standards as well as other best practices.

The remarks were made during the official launch of the Financial Reporting (FiRe) Awards 2021.

The FiRe Awards are organised and held annually by the Institute of Certified Public Accountants of Uganda (ICPAU), in partnership with the Capital Markets Authority (CMA), the Uganda Securities Exchange (USE) and Vision Group.

Organisations in the private, public and non-profit sectors participate by submission of their annual reports for the year under review. The best performers are rewarded based on their level of compliance with international financial reporting standards.

Experts explained the financial reporting awards have elevated the quality of financial reporting for organisations that have been part of them for the last 11 years.

Stephen Ineget,the chair of FiRe awards 2021 committee told The Nile Post that it is paramount for companies to have clear financial records because it helps to enhance the quality of financial and business reporting .

"Any company, entity, private or public can be part of the awards. All you need to participate is an annual report regardless of whether you make profits or losses,"Ineget said.

The chief executive, Capital Market Authority (CMA) Keith Kalyegira said good financial reporting practices is an essential step to accessing the large pools of long term finance.

"Good records give investors assurance that firms are run professionally. We are keen to support this process because of what it encourages amongst all participating companies," Kalyegira said.

The FiRe Awards are open to all organisations that prepare annual reports and it provides an opportunity to participating organisations to benchmark their reports against the set criteria of good annual reports.