Preparing accounts for a small limited company

M

Mo Chara

Registered User
Messages
22
Hi

I am currently an accountancy student.

I have been approached to help prepare a set of accounts for a very small local limited company (circa 15k turnover). The company is currently being carried on a part time basis. This would be the first set of accounts.

Just a few questions:
- accounts are the responsbility of directors?
- audit exemption should apply to the company, therefore there would be no requirement for an accountant to sign anything or put his name to the accounts?

I suppose the essence of the question is can a small company prepare accounts itself without the requiring the use of qualified accountants (i.e. with someone like myself who is unqualified assisting the preparation instead?). Therefore, if I was to commit to helping them in preparing the accounts which would be filed with the Annual Returb Form B1, would I be doing anything illegal?

Any responses would be much appreciated.

Thanks
 
You don't say whether or not you are formally training with any of the Accountancy Institutes. If you are, then the the biggest question you should consider is whether by doing this work you are breaking any of the rules of your Institute. If you are, then you should steer well clear.

Assuming you know what you are doing there should be nothing inherently illegal in helping these people but, apart from the caveat above, you should really only commit to this if you have a good understanding of the tax & company law issues affecting this company.
 
Are you a member of any accountancy body, check what there rules are. Also if company is ltd by guarantee it will need an audit
 
Thanks

ACA - training under contract.

I'll consider the points you raised.

Thanks again
 
You can prepare the accounts without being a qualified accountant

The CRO forms are all signed by the directors you don't need to sign anything.
Just make sure they file the CRO on time because if they miss their filing date they will lose the audit exemption and then they will have to go to an accountancy firm to get the audit done
 
You must log in or register to reply here.
Back
Top