Accountants - a legal requirement?

dctrpl · Dec 10, 2007

A more straightforward question this time...

Is it a LEGAL requirement for the accounts of a Limited Company to be completed by a qualified accountant?

Is it possible, legally and practically, for a company director to do his own books, accounts, returns, everything???

Thanks in advance all you wonderful people.

Alpha · Dec 10, 2007

dctrpl said:
A more straightforward question this time...

Is it a LEGAL requirement for the accounts of a Limited Company to be completed by a qualified accountant?

Is it possible, legally and practically, for a company director to do his own books, accounts, returns, everything???

Thanks in advance all you wonderful people.

No it is not a legal requirement for a qualified accountant to produce the accounts of a limited company not requiring an audit.

It is legal and possible for a company director to do their own however it is not something I would advise clients to do unless they really know what they are doing.

Whilst it has been known for accounts/tax returns in all sorts of formats to get past CH/HMRC in the past it is being tightened up now (thank god

)

JonNewton · Dec 10, 2007

Alan is correct that it is not a legal requirement but it is advisable. HMRC are more likely to make enquiries into accounts and tax returns not prepared by a qualified accountant as they are more likely to find mistakes that could lead to them being able to collect more tax.

dctrpl · Dec 10, 2007

Thankyou both for your succinct and clear answers. I really appreciate the time all you people take to answer questions here and I am amazed at the quality of people on uk business forums. Brilliant! (I am new to this forum -only found it yesterday)

I just hope I can, at some point, give some decent answers to other peoples' questions.

miketombs · Dec 10, 2007

dctrpl said:
Thankyou both for your succinct and clear answers. I really appreciate the time all you people take to answer questions here and I am amazed at the quality of people on uk business forums. Brilliant! (I am new to this forum -only found it yesterday)

I just hope I can, at some point, give some decent answers to other peoples' questions.

I first found the forum when I was looking for an answer to an IT question and now I hopefully give back to other forumites, so welcome aboard.

Basement_Studios_Ltd · Dec 11, 2007

This is what we tend to do for many small clients. we get their systems (usually very small number of transactions), we process the accounts in the same manner qualified accountants would do, prepare the account and the director signs them off (literally only difference is no accountants report)...

I have seen a few attempts from firms trying to do their own, usually ends up a disaster....I'm not saying its a really difficult thing to do, simply if you don't know the legals involved, you're heading for big trouble!

Rob

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www.cedarassociates.biz

miketombs · Dec 11, 2007

Basement_Studios_Ltd said:
I have seen a few attempts from firms trying to do their own, usually ends up a disaster....I'm not saying its a really difficult thing to do, simply if you don't know the legals involved, you're heading for big trouble!

Which is why the sensible approach is to use qualified accountants who have professional obligations to maintain an up to date knowledge of taxation and other relevant legislation, submit to oversight by a recognised professional body, subscribe to high ethical standards and all the other things that clients have a right to expect.

Alpha · Dec 11, 2007

To Steve SIms, Basement Studios and the rest of the non contributors to this thread.

The original poster simply asked a question regarding a point of law and has been fully answered.

He didn't ask for a quote, should he approach a qualified or unqualified accountant or whether one is better than the other.

As accountants it is best sticking to the point

I'm going to lock the thread and remove the bickering please don't carry on the crusade in other threads (unless asked

)

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