Advise needed

System

Hi

I have just been asked by a potential first time client to prepare their accounts and related returns. They are a limited company with a turnover of about £50k and 2 employees. I was wondering if as a full member of the AAT you are allowed to sign the accountants report as I thought this work could only be done by a chartered accountant.

Thanks.

System

Re:Advise needed

Hello
You need to conider who will need to see a copy of the accounts.
Firstly Companies House will obviously need a copy and they don't require that they're signed off by a chartered accoutant.
Secondy a copy will be sent to HMRC with the Corp Tax return and again, anyone can sign them off.
Thirdly the bank may want a copy in some circumstances. Most banks will accept accoutns signed off by a MAAT.
There may be other interested parties but I'm pretty sure that with a turnover of just £50k they won't be insiting on a chartered accountant signing off the accounts.
Jodie

System

Re:Advise needed

However I believe you need to be licensed by the AAT and some indemnity insurance too!

System

Re:Advise needed

Hi,

This is the 1st time I am using the forums. I am not even sure how to post a general question so sorry if I am sending it directly to you only.

I am hoping to finish my Technical AAT level by end of this year. I am currently working as Bookkeeper. I have been through a redundancy in the past and am considering being self employed. I don't wish to be a small bookkeeper as I am hoping to go on to do my ACCA next year.

The advice/question I want to ask is, do you think a small bookkeeping company can be successful without being part of an accountant's firm. I see lot's of ad's looking for part time bookkeepers. But sometime's people don't want to work just part time. So my idea would be to employ a few bookkeepers (obviously if we had established enough work) then my bookkeepers could work from my small office and also visit clients. But if the client wanted a bookkeeper to come in 2 hours each day that would also be ok.

I would like to work along with chartered accountants. So that when the books were ready to be certified annually we could pass these on to a CA, etc.

I am not sure if other people have tried this and it hasn't worked? Hope to hear back from you soon. Thanks for your time. :?

System

Re:Advise needed

Jodie

Thanks for your response and everybody else who replied.

I was reading somewhere that it is the director's responsibilities to prepare the accounts. Does this mean then that accounts can be submitted to companies house without the accountants report section i.e only the director signs the accounts and nobody else needs to?

In effect, I am wondering if I can just offer my assistance in preparing the accounts without having to sign them.

I also spoke to the AAT and it seems you dont have to be licensed as a member in practise (i.e you can apply for exemption) if you anticipate that your total income will be less than £1,000 annualy.

Shani

System

Re:Advise needed

shani wrote:

Jodie

Thanks for your response and everybody else who replied.

I also spoke to the AAT and it seems you dont have to be licensed as a member in practise (i.e you can apply for exemption) if you anticipate that your total income will be less than £1,000 annualy.

Shani

That's good news but I would still make sure you are covered by indemnity insurance - just to be on the safe side!

Annette

System

Re:Advise needed

Annette is spot on with her advice about getting PI insurance regardless of whether this is a one off assignment or an ongoing engagement.

The directors are responsible for preparation of the accounts for submission to HMRC and Companies House. Abbreviated accounts are normally filed to companies house rather than full accounts. You do not have to attach the accountants report to the abbreviated accounts. Normally an accountants report is attached to the full financial statements essentially stating that the financial statements have been prepared from information and explanations supplied by the client. Each institute has their own wording of how the accountants report should read but I'm unaware of how the AAT word theirs.

Kind regards
Steve