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Limited Company Accounts

nicd1981nicd1981 Well-KnownLiverpoolAAT Licensed Accountant Posts: 244
I am 4 months away from being AAT qualified and have worked for a limited company doing there accounts for around 5 years.
A friend has recently asked me to do his limited company accounts he employs 6 people but ive advised him i cant as im not chartered accountant.
I have read on cima forum (i plan on starting cima in july) that this is incorrect and there is a threshold, and anyone can file accounts
Is this correct?
Also , in my company we do the internal day to day accounts but we hire an accountant who comes once a year to file them and sign them off
Would there be anything i wouldnt of been exposed to that id need to learn before doing my friends accounts?
Any advice would be appreciated
Ive never worked in practice so i dont thinki id qualify for MIP status but will be MAAT... just mentioning this incase its relevant ;)

thanks again

nic x
Nicola Donnelly ,MAAT, MIP, CIMA Dip MA

Email: [email protected]
Facbook Page: MEND Accounting
Blog: http://wannabeanaccountant.blogspot.co.uk
Twitter: @mendaccounting
Website: http://www.mendaccounting.co.uk

Comments

  • JodieRJodieR Experienced Mentor Registered Posts: 1,002
    Neither Companies House nor HMRC insist that Ltd Company accounts are signed off by a chartered accountant. On rare occasions small companies will need or prefer someone with a particular level of qualification to sign off the accounts - usually if their bank or investor etc insist on it.
    From the AAT's point of view I think (and stand to be corected) that if you earn under a certain amount (£1000? per year) from your own work then there's no need to register as a MIP, however you should only undertake work which you have the knowledge and experience to carry out, and from what you've said it doesn't sound as if you do have enough experience to be sure that you'd get it right. If you want to help your friend why don't you offer to get his/her books into order and prepare the accounts as far as you can and then get him/her to get an accountant to finish them and sign them off?
  • stefanborostefanboro Well-Known Registered Posts: 187
    As Jodie said, it's a misconception that you need a chartered accountant to do the final accounts of a limited company.

    The only legal requirement in this regard is in relation to companies who need a statutory audit - frankly such companies will have an internal accounts team anyway.

    The only question is that of competence - are you able to compose the statutory accounts and CT600 and then file them in the proper format etc? I think that if this is your first time be very wary - experience is essential because if you mess up it's your friend who will be in trouble.

    Sorry to be so negative. Best of luck either way!
  • jamesm96jamesm96 Experienced Mentor Registered Posts: 523
    stefanboro wrote: »
    As Jodie said, it's a misconception that you need a chartered accountant to do the final accounts of a limited company.

    The only legal requirement in this regard is in relation to companies who need a statutory audit - frankly such companies will have an internal accounts team anyway.

    Yeah I was thinking exactly this as I read your comment about there being a threshold. The only 'threshold' that really exists is that if the turnover is more than £6.5m or the Balance Sheet value is more than £3.26m then the accounts have to be audited which requires that you be chartered and that you hold an audit licence.

    That said (I realise this is purely academic) there's still nothing stopping you from preparing the company accounts, it's just that, once prepared, those accounts will then need to be audited.
  • stefanborostefanboro Well-Known Registered Posts: 187
    jamesm96 wrote: »
    Yeah I was thinking exactly this as I read your comment about there being a threshold. The only 'threshold' that really exists is that if the turnover is more than £6.5m or the Balance Sheet value is more than £3.26m then the accounts have to be audited which requires that you be chartered and that you hold an audit licence.

    That said (I realise this is purely academic) there's still nothing stopping you from preparing the company accounts, it's just that, once prepared, those accounts will then need to be audited.

    Pedantic sod :001_tongue:
  • jamesm96jamesm96 Experienced Mentor Registered Posts: 523
    stefanboro wrote: »
    Pedantic sod :001_tongue:

    Hey I said I realised it was purely academic (i.e. I know I'm a pedantic sod!)
  • JodieRJodieR Experienced Mentor Registered Posts: 1,002
    Don't think there's many companies who turn over £6.5mil with just 6 staff and are asking someone who's not finished AAT yet to prepare their accounts!
  • stefanborostefanboro Well-Known Registered Posts: 187
    JodieR wrote: »
    Don't think there's many companies who turn over £6.5mil with just 6 staff and are asking someone who's not finished AAT yet to prepare their accounts!

    Nobody was saying that there were lol
  • clegganatorclegganator Well-Known Registered Posts: 184
    stefanboro wrote: »
    As Jodie said, it's a misconception that you need a chartered accountant to do the final accounts of a limited company.

    I told someone on my course at college this and haven't seen them since. Clearly going it on there own!
  • nicd1981nicd1981 Well-Known LiverpoolAAT Licensed Accountant Posts: 244
    Hi Everyone

    Thanks for all your comments and reply s

    No ive never done the CT600 forms so ive told him i haven't had the exposure needed to do his accounts

    If in the future i wanted to start doing this where could i get the experience without giving up my job?

    Any courses etc?

    Thanks again in advance

    nic xx
    Nicola Donnelly ,MAAT, MIP, CIMA Dip MA

    Email: [email protected]
    Facbook Page: MEND Accounting
    Blog: http://wannabeanaccountant.blogspot.co.uk
    Twitter: @mendaccounting
    Website: http://www.mendaccounting.co.uk
  • stevo5678stevo5678 Well-Known Cheltenham Registered Posts: 325
    Re the audit reference, a Chartered (ACA) or Chartered Certified Accountant (ACCA) can issue an audit opinion if registered with their body to do so. This is obviously not relevant.

    Qualifications alone are probably not sufficient, it is more about your experience. A job in an accounting practice would be the best way, preferably a Chartered, Chartered Certified practice. Any experience however would be helpful.
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