Aat or chartered acct

[eno]

We are trying to move accountants to someone a bit more local. We currently use a chartered acct but previously have been let down badly by bigger firms which we paid through the nose for. We have a limited company with a turnover of around 900k. We have had a quote from a CA for 5k for year end, CT and dividend planning( which is twice what we currently pay) but had a recommendation for another guy who is not a CA who would charge us £500 For the year end only. He is AAT and a CPA but is this enough to qualify him to sign off our accountants. The CA said he is no more than a book keeper but then i suppose she would say that because she would like our business.

 

[Bob]

Only my opinion, but £500 is too cheap to get the support that you should have for a company turning over £900K. Similarly £5K is on the high side. What you are currently paying is probably nearer the mark unless your needs are out of the ordinary. Having said that we have no information about the quality of your record keeping or of the services that you require

 

[kevin.doran]

Agree with Bob, £500 is too cheap but in saying that I would go with a solid recommendation over quals time and time again. That's not to say quals aren't important or a good marker, but they certainly don't make a good accountant by default.

Where are you based and we may be able to point you in the right direction?

 

[MyAccountantOnline]

We are trying to move accountants to someone a bit more local. We currently use a chartered acct but previously have been let down badly by bigger firms which we paid through the nose for. We have a limited company with a turnover of around 900k. We have had a quote from a CA for 5k for year end, CT and dividend planning( which is twice what we currently pay) but had a recommendation for another guy who is not a CA who would charge us £500 For the year end only. He is AAT and a CPA but is this enough to qualify him to sign off our accountants. The CA said he is no more than a book keeper but then i suppose she would say that because she would like our business.

Ultimately it depends on what you want and need.

Do you want an accountant to simply prepare your year end company accounts and tax return, or an accountant who will help throughout the year with ongoing advice and support?

My view - with a turnover of £900k you need support and advice from a good accountant.

Anyone in the UK can call themselves an accountant - you don't need to have any qualifications whatsoever to 'sign-off' company accounts.

The AAT (Association of Accounting Technicians) is a highly respected qualification but traditionally it was seen as a more junior qualification people tended to complete AAT and then progress to one of the Chartered bodies as I did.

 

[David Ballantyne]

As an AAT qualfied member in practice, the AAT accountant should have a practising certificate which includes the range of services he is offering you. If not, he would be breaking AAT regulations.

The AAT qualification is junior to the chartered level qualifications, but in terms of what the qualification technically covers it will be enough to meet your technical financial and management accounting and tax requirements assuming that you do not have unusually complicated accounting or taxation needs.

AAT members in practise are required to go through six monthly cycle of continuing professional development relevant to the needs and requirements of the service they are offering.

The real issue is not whether the qualification is good enough, it is whether the individual AAT Accountant you have had the quote from has the experience to deal with a business of your size.

If you are still interested in dealing with the AAT Accountant, I would suggest that you have a conversation with him to ask if he has dealt with organisations of your size before, also confirm and clarify that he has a proper understanding of your needs (volume and complexity of work), and ask him to break down how he has arrived at his quote.

 

[UK Contractor Accountant]

Judging by your previous posts on going into liquidation and claims under personal guarantees I would have thought that you are going to need rather more support than a £500 per year AAT is going to provide!

 

[Bob]

Judging by your previous posts on going into liquidation and claims under personal guarantees I would have thought that you are going to need rather more support than a £500 per year AAT is going to provide!

I did think of mentioning that ...........

 

[Energise Accounting]

Generally speaking a person with a AAT qualification as long as they have gained suitable experience will suit your needs.

They should also be able to suit your taxation needs as in real terms their is not much difference in the AAT examination on tax and those of ACCA except at the advanced level. I know I have done them both it is more important that they have had experience in dealing with tax matters.

The only possible downside is that some banks don't except accounts that have been prepared by AAT qualified accountants in the case you ever need to raise finance.

Plus if you are going into liquidation it will need more support than a charted Accountant. You will require the services of a insolvency practitioner

 

[UK Contractor Accountant]

Plus if you are going into liquidation it will need more support than a charted Accountant. You will require the services of a insolvency practitioner

I gather this is a Phoenix company which will probably need closer monitoring in terms of monthly/quarterly reporting, dividend & tax planning as well as cash flow forecasting etc.