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I have level 1 and 2 bookkeeping exams, and I am going to take level 3 manual, computing bookkeeping and self assessment exams in the next couple of months.
I am cima part qualified and I have a BA (Hons) Business studies. Would the above book keeping qualifications qualify me (once level 3 achieved & licensed) to undertake full final accounts for limited companies as a self employed bookkeeper ?
I am asking the question because the institute of bookkeeping web site states the accounts for ltd companies can be drawn to "draft accounts".
Any anyone help, I haven't a clue, do my clients need a fully qualified accountant to complete the final sole trader and ltd accounts?
Any guidance would be appreciated.
Thanks
Edited at 15 Nov 2011 01:47 PM GMT
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Yes friend
Clients need everykind of services like:
- decide on the most suitable structure for your business - sole trader, partnership, limited liability partnership or limited company
- prepare a business plan, cash flow projections, budgets, and trading forecasts
- assess your finance requirements, advise on the best sources of finance, and draw up the necessary proposals
- establish a good working relationship with your bank
- complete any registration procedures with Companies House or HM Revenue & Customs
- deal with company secretarial issues
- Set up a recording system for your internal use and for complying with statutory requirements.
These things are very important.I hope this will help you.
Thanks
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- Fellow PM.Dip
- Practice Licence
- 259 posts
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Hi Justine.
As an associate CB. Cert, I believe you are qualified to produce final accounts for sole traders but not draft accounts for limited companies - only a full member can do this. But for final accounts of Ltd companies an accountant would be needed as not even full members are qualified to produce final accounts.
Hope that helps.
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My understanding is that ICB members can produce draft Limited Company accounts which they then pass onto the
director(s).
However, the Director(s) of small Limited companies can submit their own accounts to Companies House and HMRC if they want to, or they can use an accountant to submit the limited company accounts for them.
It is the Director(s) who approve and sign off the final accounts, not the accountant.
In instances when Limited companies are relatively small with 1 or 2 Directors, (say a couple), it is possible that they may use a bookkeeper to draf the accounts, but then may want to submit their own accounts. (keeps the cost down).
Ensuring the company accounts are submitted timely and are 'fair' and 'accurate' is the responsiblity of the Director(s). 
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- Fellow PM.Dip
- Practice Licence
- 259 posts
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Yes the directors are responsible for submitting the accounts and making sure they are correct and show a true and fair view of the companys financial position but unless they studied accounting as well they cannot make them up to the correct format that conforms with IFRS, IAS etc. etc.
The accounts have to be in the correct format in order for Companies House to accept them, which only an accountant is qualified to do.
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Hi Lady M,
Sadly I lost my original reply - so I will keep this reply shorter!
You are right Full Accounts are normally submitted by a Chartered Accountant.
It is usually the Accountant or Director(s) who are given the signon to submit accounts at Companies House.
Small audit exempt companies who wish to take advantage of special provisions under sections 246 (5 and 6) in the Companies Act 1985 allowing companies to file Abbreviated Accounts with Companies House. For accounting periods beginning on or after 06 April 2008 can file abbreviated accounts in accordance with section 444(3) of the Companies ACT 2006.
The abbreviated accounts template provided by Companies House is already formatted and only needs numerical amounts to be supplied in the balance sheet. Once completed the template can be submitted to Companies House.
When a company files abbreviated accounts, its directors are still obliged to provide members of the company (and others so entitled) with a copy of the full or shorter form accounts.
The abbreviated accounts are popular because they contain less information about the Directors.
Regards,
Michael.
Edited at 18 Dec 2011 01:35 AM GMT
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- Fellow PM.Dip
- Practice Licence
- 115 posts
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Hi All
My understanding is that if a small ltd company can file unaudited abreviated accounts, it is the responsibilty of the Directors. They can ask their accountant or bookkeeper to prepare final accounts, CH and HMRC don't require anyone to have any particular qualifications to prepare these accounts.
However if you are L3 Member of the ICB then you are permitted to prepare draft final accounts, and these should be passed onto an accountant for preparing final accounts with corp tax calculations. This will change with the introduction of Level IV.
I'm with Liz, much better to hand over this work to an accountant.
Mike
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Hi Mike,
I believe your understanding is correct.
Only directors can authorise the submission of the accounts and corporate tax form (CT600), either through an accountant, or themselves (if they are a small company).
For very small ltd companies, it is possible the director(s) may want to complete the process themselves, especially in the current financial recession.
Accountants still need the written permission of the director(s) to submit accounts and corporate tax (CT600) which are normally submitted together (so I understand).
Best Regards,
Michael.
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