Micro entity Accounts?

[smo]

Hi,

I'm trying to file my own micro-entity accounts, in my previous business I used an accountant, but at £2000+/year I simply cant afford to at the moment and i've been quoted by another firm £350+vat to wrap up YE accounts for 3 months trading totalling less than 10 transactions!

The problem i have is I've run the reports in Kashflow, done the YE report and pulled a balance sheet and P&L and entered the figures into the online filing system at companies house...but i get an error "Current period: Shareholders' funds must be equal to the total net assets (liabilities)"

Why? I know the proper answer is go to an accountant but that's not possible....can anyone help please?

 

[john1989]

I'm surprised that the date from your bookkeeping software is ready to simply insert into the final accounts.

Without stating the obvious, it tells you what is wrong. The cause could be a number of reasons. Without looking at the figures, nobody can help you.

 

[smo]

I'm surprised that the date from your bookkeeping software is ready to simply insert into the final accounts.

Without stating the obvious, it tells you what is wrong. The cause could be a number of reasons. Without looking at the figures, nobody can help you.

I don't see why it wouldn't be ready to "insert", the micro-entity balance sheet is half a dozen boxes each with names which correspond to balance sheet entries....surely its a copy and paste type affair but the CH system doesn't like the numbers???

 

[john1989]

Unfortunately, accountants don't just copy and paste from bookkeeping packages. They make the necessary adjustments for accruals, prepayments, depreciation etc to give a true and fair reflection (which you may have already done yourself).

It doesn't like the numbers, because something is wrong somewhere. Again, without knowing the figures, nobody can say exactly what is wrong.

 

[smo]

I don't see how they can justify a fee of £350+ for something that in reality will take 30 minutes tops, copy and paste or not we're talking 10 transactions...

 

[Energise Accounting]

@smo it is not the case of just copying and pasting a couple of transactions. All the year end adjustments must be completed first. As already mentioned the answer is in your question if you do not understand that it is time to get an accountant.

 

[MyAccountantOnline]

I don't see how they can justify a fee of £350+ for something that in reality will take 30 minutes tops, copy and paste or not we're talking 10 transactions...

If I could complete a set of accounts and a tax return and deal with all that's required in 30 minutes for £350 I'd be a very rich accountant....in fact I would have retired years ago

 

[smo]

I don't believe that wrapping up 10 transactions for a YE takes anything like 30 minutes, the figures are all there, book keeping is done......£350 for 30 minutes is why most accountants are very rich....doesn't make them good value though.

 

[john1989]

Most accountants are very rich? Afraid not.

 

[Bob]

They can justify the fee because they have invested years of their life in learning accountancy and tax and they do know how to file accounts successfully without errors. They also have professional indemnity insurance to pay for and for their software that assists them in the filing

 

[Pish_Pash]

They can justify the fee because they have invested years of their life in learning accountancy and tax and they do know how to file accounts successfully without errors.

Likewise the person who cuts my hair, he's invested years of his life to be able to cut hair without errors...for 30 minutes work cutting hair he charges about £15 (& he has to pay insurance too) ...which is a bit less than the rate that you can get an accountant for on PPH (but that's fair enough - cos he doesn't really know how submit micro entity accounts ;-) )

 

[Bob]

Likewise the person who cuts my hair, he's invested years of his life to be able to cut hair without errors...for 30 minutes work cutting hair he charges about £15 (& he has to pay insurance too) ...which is a bit less than the rate that you can get an accountant for on PPH (but that's fair enough - cos he doesn't really know how submit micro entity accounts ;-) )

I love your assessment of accountants One can, and indeed you have, arrange for the accounts to be prepared on PPH. It's an open market place these days. Unfortunately professionally qualified accountants have to comply with the Ethical and Conduct rules of their professional bodies and compliance does not come cheap if they are running a proper business.Accountants are still cheaper than lawyers

 

[UK Contractor Accountant]

Exactly the same us Accountants can go on ebay/amazon and buy your product a lot cheaper via chinese sellers.

You get what you pay for. Buy cheap you get cheap.

 

[MyAccountantOnline]

If its really that easy and you know it will take less than 30 minutes why not do it yourself???

 

[john1989]

Likewise the person who cuts my hair, he's invested years of his life to be able to cut hair without errors...for 30 minutes work cutting hair he charges about £15 (& he has to pay insurance too) ...which is a bit less than the rate that you can get an accountant for on PPH (but that's fair enough - cos he doesn't really know how submit micro entity accounts ;-) )

I know you don't think highly of accountants (and I'm sure the feeling is mutual), but there's a big difference between a hairdresser and an accountant.

The actual work could take 30 mins, but it's the time you don't see that starts to rack up time such as chasing for more information because that carrier bag of crap just wasn't enough, issuing engagement letters, initial meeting or call to discuss fees, meeting or call to discuss drafts and finals etc.

It boils down to if you don't have the knowledge to complete it yourself, then you don't really have a choice but to pay someone that can. The price is dictated by the market ... and the current market says that accountants earn more than hairdressers.