Am trying to understand best way to make quick calculation on year end turnover to see if we can qualify for audit exemption for our 2016/17 accounts.
Issue is simply how best to convert Forex sales to GBP in order to see if we are below the £10.2 million T/O limit.
For Monthly VAT Returns & EC Sales List we use HMRC monthly issued exchange rates to convert Euro & USD sales back into GBP.
We use these same rates/figures for monthly management accounts as these seem most logical approach, but we are not actually converting the Euro/USD receipts into GBP each month, or in fact each year, so all of these are just calculations for each month with Euro and USD balances held in various bank accounts.
Problem we have now is that we are very close tothe £10.2 million T/O limit for Audit Exemption and having had full Audits for last two years we would rather avoid this and associated cost if possible this year.
Hence question to ask if anyone knows if there is any specified method for conversion of foreign currency sales values into GBP at year end?
Would the sum of the 12 months GBP sales values calculated each month using HMRC rates be correct, or is there a formula for an overall average of rates for the 12 months that should be used?
Am just trying to give Directors a "heads up" on whether audit is likely to needed or not.
