This probably sounds a daft question, but, if I provide the Bookkeeping services for sole traders do I have to forward them onto an Accountant at year end? I am thinking tax here. Would an Accountant fill out the tax form or would it be down to my client?
You don't have to really do anything... considering bookkeeping and year end compliance/tax can be quite separate areas and services.
It depends partly on what your client needs, and what you want to provide. Ultimately it is down to your client, but you may prefer to see this as an opportunity.
I'd suggest forming a relationship with an accountant, probably local to you and offering their service through you. Hopefully you'd get a decent discount to cover your time, it's easier for your client and they effectively get a full service - at no extra cost to going direct to an accountant (which they'd have to find etc too).
If the accountant likes the books, there's always a chance you'll pick up work or referrals from them too!
I made a conscious decision that I wasn't going to be liable for any year end figures and tax etc, but I provide monthly management accounts for my clients and provide their accountants with a full working papers file at the end of the year. I thnk every one is happy - not had any complaints!!
So what you are saying is, I would have to send the books to an Accountant at the end of my clients financial year? The reason I asked is because I was mislead slightly by the ICB when asked who I could provide services for as an Associate Member having gained Level II. They told me sole traders and small partnerships (whatever they mean by small), NOT Ltd companies. I have since found out I could provide services for Ltd companies but not do the final accounts. So that got me thinking, do you as a Bookkeeper not need to involve an Accountant if working for Sole Traders or small partnerships?
If you want to provide the year end adjustments and do your client's tax return, you can. Personally, I avoid this for all my clients and have an accountant review everything and do their taxes.
