LLP Partnerhsip Accounts - Advice

System
System Posts: 100,537 🤖 Admin 🤖
edited June 9 in AAT member discussion
Advice Needed..

I am currently producing management accounts in the form of Profit and Loss / Balance Sheet using Excel and my employer is looking for me to produce the year end accounts for their partnership. At the end of this year the company will also go LLP and I have been informed that the accounts will differ slightly next year.

We are considering producing a spreadsheet for this. My Excel skills are excellent but with the best will in the world when you are adding and changing spreadsheets formulas often start to produce some strange results!! I have only previously used General Ledger systems such as Oracle so know very little about accounting software and what is most suitable.

I would like to the company to move to a more streamlined way of working and they are happy to look at packages, but we have only 8 members of staff, 3 partners and are heavily regulated by the FSA. Our cash book is only 2 pages each month and the type of business we run involves client accounts so all sales and purchases are run through separate software that can't be amalgamated with the company accounts, but data is currently fed into the spreadsheet from reports produced from this.

I have looked at PTP as they have the facility to produce partnership accounts and returns, and I assume management accounts also.

Does anybody use anything bettter for compiling LLP Partnership Accounts (also on what the differences are) and / or anything that would deal with FSA Compliance also.

Any comments welcome

Comments

  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:LLP Partnerhsip Accounts - Advice

    Hi Emily,

    LLP's have to be registered at Companies House and fulfil the same filing requirements as Limited companies. As a consequence, therefore, the format of LLP financial statements are (more or less) the same as Limited companies i.e. primary financial statements and the associated notes. However, there are fundamental differences in the treatment of items such as Members' Interests, salaries paid to partners and the treatment of surpluses of income over expenditure. Recent changes have occurred because of FRS 25 and the treatment of debt -v- equity instruments. These are effective from March 2006 year-ends.

    LLP's are governed by their own SORP which is quite lengthy, but does give you the information that you need to prepare financial statements for LLP's. If you log on to the Financial Reporting Council's website (www.frc.org.co.uk - I think!) and type in LLP SORP in the search facility, it should bring up the required documentation.

    In terms of software for LLP financial statements, we currently use IRIS which is excellent for preparing LLP's, however, it is an expensive software programme and there could well be cheaper alternatives that would do the job for you.

    Kind regards
    Steve

    p.s the link to the above website does not work so if you do a Google search for Financial Reporting Council it should re-direct you to the correct website.

    Edit

    The FRC have removed their articles so try the following link:

    http://www.icaew.co.uk/index.cfm?route=105098

    and type in LLP SORP in the search facility.
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:LLP Partnerhsip Accounts - Advice

    Thanks for that, I have just managed to print it all off. looks like I am going to have some fun bedtime reading!!
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:LLP Partnerhsip Accounts - Advice

    I have been trying to obtain similar advice for LLP accounts as a MIP and will copy/paste your useful information.

    I too have been looking at PTP software for this purpose - could you let me know what you decide and what you think of the PTP software and what solution you finally use.
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:LLP Partnerhsip Accounts - Advice

    No problem, we will be making a decision in the next couple of months. If I forget to let you know, post a response back and I will reply
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:LLP Partnerhsip Accounts - Advice

    Salisbury,

    After speaking to PTP their package does not cover LLP accounts, and they have simply added me to their mailing in case they add it in the future. IRIS is also too expensive for us, however PTP have recently been bought out by IRIS so they may be additions to PTP in the future.

    It looks as though we will be using Excel, I have decided to upgrade to Excel 2007 first and we have been supplied with a full set of pro-formas from our auditors, which I have been informed will have to be adapted for our needs. I am currently not in pocession of these so unfortunately can't provide you with a copy.

  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:LLP Partnerhsip Accounts

    This does tally with conversations I have had over the past two days with both the Iris regional sales advisor and PTP. I have come to the conclusion that the Iris Lite license will need to be purchased for these accounts in particular. As a matter of interest what would you suggest for LLP annual accounts charging policy, it is a relatively new and uncomplicated consultancy who wish to do their own bookkeeping but need my services for tax returns and annual accounts.
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:LLP Partnerhsip Accounts - Advice

    Can somebody provide a link to the LLP SORP please?

    I tried searching the ICAEW website but all I got was a lot of outdated articles and broken links!

    Thanks..

  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:LLP Sorp

    http://www.accaglobal.com/news/uk/llp_sorp

    This is dated 30 March 2006.

  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:LLP Partnerhsip Accounts - Advice

    Perfick - thanks!!
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:LLP Partnerhsip Accounts - Advice

    I really don't know about charges, as I am employed by my company and don't work self employed. A read a thread once that somebody charges £500-800 for a limited company set of accounts whose turnover was under 30K, and I know somebody who is a sole trader and is being charged £500 a year by an accountant for producing their tax return. As LLP is as in depth as as set of limited accounts, you can draw your conclusions from this.

    You also need to take into account your company's turnover and whether you need to produce any consolidated accounts also. I now have a set of pro-formas, if you give me your E Mail address I will forward them to you. However they are in Word!! unfortunately and they include a consolidated set of accounts also. I am having to plough through them and adjust it accordingly, but hopefully, as they have been provided by our auditors, they will be comprehensive and provide all of the wording and layout you are looking for.
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:LLP Word Templates

    Emily - many thanks. I have been skim reading the SORP and would like to see the word templates. I am meeting the LLP clients on Monday and I would like to be as conversant with all this as possible. Its a steep learning curve in the first year and the forum is a real source of generous help.

    my email is alysonstoakley@yahoo.co.uk

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