My brother runs a small Ltd company has uses an accountant firm which he's not happy with- does he need a chartered accountant to sign off his account at years end?
The simple answer is no, he doesn't. He could do them himself if he had the skills and knowledge. The slightly longer answer is that you need to weigh up what the accountant is providing for their fees. If they are simple taking your brothers figures and writing them up then it's maybe time to look for a new accountant. An accountant should save you money. They should understand the taxation system and offer suggestions to save the company money. Many accountants are now offering a whole range of other business services too such as marketing help.
Does your brother not feel he's getting a good job from his accountant, or is he just trying to save a few bob?
Well, he is not happy with the accountants because he doesn't think they have provided a good service.
To be honest, I am training to be an acountant- currently studying AAT, and am wondering whether I could do the work for him to help him save some money and to get some more experience, but I didn't know whether it was a legal requirement to have the accounts signed off by a fully qualified accountant.
Common misconception that you need a chartered accountant to prepare a set of limited company accounts.
If your brother requires the accounts to be audited then would need an audit report which would need to be signed by a registered auditor.
If no audit required then anyone can prepare the accounts; you, your brother or whoever.
Only issue is that limited company accounts are a statutory requirement that have to be laid out in a certain way to conform with Companies Act requirement and have certain disclosures. This is where accountants provide their service in that they have the software to produce the statutory accounts as well as bring tax saving ideas to the table.
If you or your brother can file the accounts online using companies house template then should be straightforward to prepare and lodge the accounts. If not then you would probably need some accounts software to produce the accounts in the right format with correct disclosures.
There is also the added complication of the company tax return which you used to be able to submit manually but not needs to be produced in computer readable form (iXbrl). If you can use the HMRC software to submit then should be straightforward provided you are clued up about the the relevant allowances that can be claimed. If not better to seek appropriate advice.
If your brother would like a quote to do his accounts, company tax return and personal tax return then contact me through my website. (we can prepare accounts remotely - see the prepare accounts link on website for the process). If you require any further info again dont hesitate to drop me an email via website.
I have been under the impression that if a limited company that is registered with companies, has to have the annual accounts submitted by an accountant or a fully qualified bookkeeper.
A level 4 ICB in my case.
Please advise if I am wrong.
Alfred Lyons AICB CB Cert
Lyons Bookkeeping Services
-- Edited by alfie on Wednesday 2nd of November 2011 11:51:19 AM
-- Edited by alfie on Wednesday 2nd of November 2011 11:52:43 AM
I have been under the impression that if a limited company that is registered with companies, has to have the annual accounts submitted by an accountant or a fully qualified bookkeeper.
Please advise if I am wrong.
Yes, you're wrong. As MarkS said in his post, if the company doesn't require an audit, then anyone can prepare the accounts.
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Pearce & Co - Chartered Accountant and Chartered Tax Adviser
I have been under the impression that if a limited company that is registered with companies, has to have the annual accounts submitted by an accountant or a fully qualified bookkeeper.
Please advise if I am wrong.
Yes, you're wrong. As MarkS said in his post, if the company doesn't require an audit, then anyone can prepare the accounts.
Just as a quick adendum to that though. Should also add if your supervisory body lets you.
If you're not registered with anyone then you can file accounts. Conversely if you've spent years training, can put together a set of books in your sleep but not got a practice certificate yet then you can't! Go figure that one!
You said that you were studying AAT Zak so might be worth checking with them the services that you are allowed to perform even for close family members with your current level of attainment of the qualification.
As a matter of interest, what was the issue with the accountant? I know that one or two people who have small companies and use chartered accountants get treated quite badly as the accountants sometimes see the small companies as not worth their time and effort.
That's not true of all chartered accountants and I know some very good one's who genuinely care about even the smallest companies under their wing (and don't charge the earth).
Good luck getting a satisfactory outcome from this. One thing to be wary of is that the accountant may charge a years fee's for leaving them. I've seen that happen a few times where people have had a surprise bill on moving accountants.
Maybe best to ensure that you have all information that you need and all of your paperwork back (including your memorandum and articles if the accountant is holding them to randsom) before you mention that you are moving to another firm.
All the best,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
As mentioned above a company has no requirement to appoint a registered accountant unless it is a requirement of the mem and arts or you require an audit, but the bank may insist depending on the level of finance within the company.
I would also advise getting proper help preparing the final accounts and tax as it can become complicated but in saying that there is nothing stopping you preparing the information for an accountant and therefore reducing costs.
