Set of accounts for Ltd's and non Ltd's

Minky

Hi. Just in the process of becoming a MIP. By the way, thank you for all of your replies re the hourly rate to charge from a couple of weeks back.

I am a bit confused. The practice that I am currently employed at does a full set of accounts for Ltd's, i.e. profit and loss, and balance sheet and notes to the accounts etc. but only an income and expenditure statement for sole traders and partnerships, because according to HMRC, this is sufficent. Also a bank rec doesn't need to be done for non Ltd's, so they do not do a bank rec for their clients unless the client specifically asks for one to be done. The partners at my place of employment are not qualified but are just members of practicing accountants so I wanted to ask some AAT MIP's.

The question I have is when I do accounts for myself as an AAT MIP, can I carry on with this way or should I produce a full set of accounts for all clients (whether ltd or not) as per my AAT studies. The reason I ask is because in my studies 7-10 years ago we were never told that just an income and expenditure statement would be sufficent for a sole trader and partnership. I want to make sure I do things correctly right from the start.

What do other AAT MIP's do? I think I also need to find a template as well to use which will help me out with the wording within the set of accounts (if this is necessary ofcourse). Sorry about the essay. Your response is much appreciated!
:001_unsure:

groundy

Were a client runs a near cash only small business (eg swimming instructor, subcontractor) then we only complete an income and expenditure account. Also were client runs his business through personal bank account and there are no material balance sheet items then we prepare an income and expenditure account.

However were there are material balance sheet items and were a business bank account is used then we always complete full accounts for sole traders and partnerships.

Good luck in your start up.

Bluewednesday

I would almost always do a bank rec too as it can catch a few forgotten expenses!

Monsoon

I always do a bank rec if possible to do so. As BW says, it often throws up a few amendments.

I get very surprised when I inherit clients from high street chartered firms who are surprised when I ask for bank statements. They are used to simply supplying spreadsheets from which everything is calculated. I believe we have a duty of care to establish that the figures on the spreadsheet have some basis in reality and haven't just been made up!! :001_tongue:

BIG WAL

For accounts templates, I would recommend VT Accounts. (www.vtsoftware.co.uk). I comes with the wording that can be used, is fairly inexpensive (£199+VAT I think), and looks professional.

It's very rare that we don't include a balance sheet in the accounts, as most clients have assets to depreciate.