• Skip to main content
  • Skip to footer
SBCA Chartered Accountants

SBCA Chartered Accountants

Chartered Accountants in Preston

Call Us Now 01772 204102

  • Facebook
  • LinkedIn
  • Twitter
  • Accountancy & Tax
  • Business Growth
  • Private Wealth
  • Who We Help
  • About
  • Our Team
  • Client Testimonials
  • Contact
  • Client Login

The Importance of Good Corporate Governance

With recent, very public governance failures at businesses such as BHS, Carillion and other well known brands, it is clear that business leaders need to do more in terms of living up to their responsibilities, following best practice, etc.

4th June 2019 by Chris Bond

With recent, very public governance failures at businesses such as BHS, Carillion and other well known brands, it is clear that business leaders need to do more in terms of living up to their responsibilities, following best practice, etc.

Good governance is a must for SME’s as well as large listed companies. Corporate governance refers to a set of internal policies, rules, and procedures that a company follows on a regular basis in order to ensure that it operates in a fair, equitable, and appropriate manner for the benefit of the company, its management and its stakeholders. Those stakeholders include your staff, customers, investors, suppliers and the wider community.

Most business owners and managers are familiar with the regulatory and compliance requirements of being in business. However that is just the beginning of good corporate governance. The next step is to make sure that your business  creates and delivers its strategy. That strategy should be designed to maximise the opportunities and minimise risk for the benefit of the firm and its stakeholders. You then need to build that into your company and its culture.

Good governance is not about making the “right” decisions. Instead it’s all about ensuring that there is a good decision-making process in place and making sure that the process is followed. Having a robust decision making methodology in your firm can help you to change direction efficiently in order to drive the business forward when opportunities arise.

In large businesses, the management board will probably have a team that is charged with ensuring the firm adheres to the principles of good governance. However smaller business can put a simple governance structure in place. This could be achieved by having a trusted advisor (such as your accountant) or a non-executive director (NED) on the board.

Good governance helps you and your business to manage risk.

It’s easy to get distracted by growth opportunities, business development and so forth. Good corporate governance practices ensure the business stays on top of statutory reporting, annual returns, renewing insurance policies and licenses, etc. Your trusted advisor should hold you accountable and focused on meeting your legal and statutory requirements whilst also helping you see the bigger picture.

Finally, implementing good corporate governance practices encourages the management team to review and update the firm’s strategy on a regular basis in order to maintain and/or improve the performance of the company. From time to time, this may include bringing in external experts to assist with strategic decision-making.

Category iconBusiness Development

Xero Gold Partners
ICAEW Chartered Accountants
Clear transparent pricing champions

Footer

Get Your Free Copy of Chris’s Book

Reflect Dream Do

Quick Links

  • Get in touch
  • Book Your Discovery Call
  • Client Testimonials
  • Blog
  • Meet Our Amazing Team
  • Work for us
  • Time. Money. Headspace.

Get Your Free Tax Planning Checklist

Business Tax Planning Checklist

Join The Preston Business Community

Preston Business Community

The Latest From Our Blog

Tax Time

Tax Time – Dates for June 2022

23rd May 2022 By Chris Bond

Tax Time

Tax Time – Dates for May 2022

21st April 2022 By Chris Bond

THE UPS AND DOWNS OF SPRING STATEMENT 2022

The ups and downs of spring statement 2022

24th March 2022 By Chris Bond

Read more from the blog

We use telephone tracking numbers to link a user’s call to the marketing channel that they originated from. This is done using cookies, you can choose to decline cookies using your browser settings if you would prefer not to be tracked. We may record calls for training or monitoring purposes.

This firm is not authorised under the Financial Services and Markets Act 2000 but we are able in certain circumstances to offer a limited range of investment services to clients because we are members of the Institute of Chartered Accountants in England and Wales. We can provide these investment services if they are an incidental part of the professional services we have been engaged to provide.

Copyright © 2022 SBCA Chartered Accountants · Privacy Policy · Terms & Conditions · Site Design by Simply Smarter Marketing