Filing accounts with Companies House - what are the notes?

Filing accounts with Companies House - what are the notes?

Author
Discussion

Sparkling

Original Poster:

17 posts

209 months

Friday 31st August 2007
quotequote all
Hi

I have a small limited company and can claim the exemptions for auditing and I'm trying to work out what I actually need to submit to Companies House.

As far as I can see, I simply need to give a summary balance sheet (got that) plus the statements confirming exemption and acknowledging the director's responsibilities.

Companies House Website said:
If the company qualifies (see question 2 and 3), unaudited accounts may be delivered to the Registrar in the form of an abbreviated balance sheet and notes.
What exactly needs to be put in the notes? I'd like to make them as brief as possible - are they simply an outline/explanation of the balance sheet figures? If so, is there a legal minimum information that CH are looking for?

Thanks!

thewave

14,739 posts

215 months

Friday 31st August 2007
quotequote all
YHM

Eric Mc

122,789 posts

271 months

Friday 31st August 2007
quotequote all
YHM from me too smile

thewave

14,739 posts

215 months

Friday 31st August 2007
quotequote all
Who provided the best e-mail then?

Come on, you can tell us....was it me or Eric?

I bet Eric went into masses of detail, and has once again made me look silly wink

Eric Mc

122,789 posts

271 months

Friday 31st August 2007
quotequote all
That certainly wasn't the intention smile.

However I have a set of "pro-forma" small company accounts which I keep on standby for just such an occasion. They were put together for another PHer's query a year or so ago and they have come in very useful for similar quesries ever since.

thewave

14,739 posts

215 months

Friday 31st August 2007
quotequote all
Eric Mc said:
That certainly wasn't the intention smile.

However I have a set of "pro-forma" small company accounts which I keep on standby for just such an occasion. They were put together for another PHer's query a year or so ago and they have come in very useful for similar quesries ever since.
Don't worry, I was only jesting, funnily enough that's exactly what I had done! Oh well, he can choose which one 'looks prettiest' or something hehe

It's all good, i've learnt a couple of things from you since I've been posting on PH....carry on...

Learning all the time, I'm confident your experience vastly outweighs mine on 'most' subjects wink

Eric Mc

122,789 posts

271 months

Friday 31st August 2007
quotequote all
I rely heavily on my "Iris" statutory accounts software to keep me on the straight anfd narrow regarding full and proper disclosure. In addition to that, however, I make use of a 15 page Companies Act and Accounts Disclosure checklist to ensure I don't miss out the areas that Iris might not be geared up to pick up on.

Anyone who does not have access to such tools, in my opinion, is on a hiding to nothing regarding submitting full and correct accounts - unless they have an encyclopaedic knowledge of all the SASs, SSAPs, FRSs and Company Law.

thewave

14,739 posts

215 months

Friday 31st August 2007
quotequote all
Eric Mc said:
I rely heavily on my "Iris" statutory accounts software to keep me on the straight anfd narrow regarding full and proper disclosure. In addition to that, however, I make use of a 15 page Companies Act and Accounts Disclosure checklist to ensure I don't miss out the areas that Iris might not be geared up to pick up on.

Anyone who does not have access to such tools, in my opinion, is on a hiding to nothing regarding submitting full and correct accounts - unless they have an encyclopaedic knowledge of all the SASs, SSAPs, FRSs and Company Law.
I use IRIS too, makes things very easy, and allows you to concentrate on more important things.

Do you use all the other 'tools' Iris provides? Also are you on your own (wish I was), or do you have a practice that employs staff? Just curious...

Eric Mc

122,789 posts

271 months

Friday 31st August 2007
quotequote all
On my own.

No staff - no partners - only a "Girl Friday" (i.e. the missus).

I use Iris Payroll, Iris Business Tax and Iris Personal Tax - and that's it.

broadhat

718 posts

219 months

Friday 31st August 2007
quotequote all
thewave said:
Who provided the best e-mail then?

Come on, you can tell us....was it me or Eric?

I bet Eric went into masses of detail, and has once again made me look silly wink
Thank you both - you gave me exactly what I needed and it is all safely on its way to Companies House (No I didn't leave it to the last minute. Well maybe just a bit!)

From the CH website I knew I had to include notes but I had been lulled into a false sense of security from a Business Link website which, to me anyway, seemed to suggest that the statements that need to be included for audit exemption were in fact the notes. Your emails cleared that mistake up! My accounts were all up to date so it was just a question of working through the balance sheet.

Having both sets of info was useful though - especially reassuring to see that they were virtually identical.

Thanks again!


khushy

3,966 posts

225 months

Saturday 1st September 2007
quotequote all
btw - what are the criteria for a small ltd co being exempt from auditing?

khushy

Eric Mc

122,789 posts

271 months

Saturday 1st September 2007
quotequote all
Turnover less than £5.6 million
Staff less than 50
Balance Sheet total less than £2.8 million
2 out of 3 of the above only need to be satisfied to avail of the audit exemption
10% or more of the shareholders have not voted for an audit to be held
The company is not required through some other legislation to have an audit carried out
The company is NOT a PLC

If the company is a member of a group, it may need to be audited even if the above criteria are met.



Edited by Eric Mc on Saturday 1st September 10:36

khushy

3,966 posts

225 months

Sunday 2nd September 2007
quotequote all
so when the audited is mentioned - does that mean that you can file your own accounts and not have to use an accountant - as long as the required information is submitted?

khushy

Eric Mc

122,789 posts

271 months

Sunday 2nd September 2007
quotequote all
Exactly - although the chances of making sure that the accounts are fully compliant with Accounting Standards and Company Law are rather slim.

khushy

3,966 posts

225 months

Monday 3rd September 2007
quotequote all
OK - I understand now and having also been on the hmrc website I am a little clearer - thanks EMc - what accounts software for everyday book keeping, VAT and payroll would you rec - we have two businesses . .

Hair salon - LOTS of transactions t/o 120k
Recruitment - few transactions - t/0 80k

Khushy

Edited by khushy on Monday 3rd September 07:44

Eric Mc

122,789 posts

271 months

Monday 3rd September 2007
quotequote all
I don't tend to recommend software - I just know the software I am used to using. The two softwares I come across mostly are Sage and Quickbooks. Both have their merits and both have their pitfalls. Both work better if the user has some understanding of basic book-keeping and using "double-entry" accounting techniques. Quickbooks is more user friendly for those who are less well up on these matters.
Please note that NEITHER of these products will produce accounts to the standards required for compliance with company law i.e. you cannot use Sage or Quickbooks compiled accounts for submission to Companies House - they are just too basic.

I use Iris, which is software designed specifically for accountancy practises and will do most of the necessary work required to comply with accounting, tax and Companies House regulations. However, it is a very specialist product, expensive and not really aimed at people running their own businesses.

I trust you have an accountant in tow already as trying to negotiate the minefield of compliance and disclosure is really too difficult for the non-professional.


khushy

3,966 posts

225 months

Monday 3rd September 2007
quotequote all
we have an accountant - have to say that they are fcuking useless - sending me bills for stuff we havent agreed on - their latest ploy is charging for ttime rather than for jobs done!!!!

Needless to say they were told where to stick their last bill - they are ALL perspiration and no inspiration - would love to find an accountant we could work "with" rather than who only does the bear minimum.

We have two simple/successful businesses and I feel that they are now starting to take the pis& because they know we are fairly successful!

I would like the accountants software so that we can do the basic record keeping etc more effectively.

Khushy

Eric Mc

122,789 posts

271 months

Monday 3rd September 2007
quotequote all
Accountants traditionally have charged their fees on a "time" basis rather than a "work done basis. OPf course, in a perfect wotld, both should equate to the same thing - "time" spent on your affairs should result in "work done".

The trick is reassuring the client that genuine work has in fact been carried out. There is nothing more galling for a client than receiving an invoice with a vague explanation of what had been carried out on their behalf e'g. "Work Done for the Month Ended DD/MM/YY" or "Work done to date".

I don't bill like that anyway - I know it drives clients nuts. The best thing is to bill when a job is completed. Then the client knows (and expects) a bill for the actual services provided and completed. And the bill should contain a clear and concise explanation of the work done.

If you feel you are being billed for work not originally agreed for, go back and check your "Letter of Engagement" as that should set out in black and white what the accountants originally undertook to do for you.

khushy

3,966 posts

225 months

Monday 3rd September 2007
quotequote all
at the outset we outlined our requirements VERY clearly AND agreed a fixed fee for ALL the work - I asked a simple question "would it be better to put our car through the company or take it as a private car?" - bearing in mind that we have a very simple set of accounts and our tax positions couldnt be any simpler - the answer came 2 weeks later - was based on my wifes position and not mine - was in fact WRONG and then they had the cheek to bill me £370!

I sent the bill back - got a phone call another 3 weeks later offering to halve it - I said ***** *** and now I have heard nothing - I assume that they have cancelled it now!

A fixed fee for ALL accounting issues should mean a fixed fee - if there are "extras" they should be clearly outlined to a client before incurrring such costs - in the end I called HMRC who gave me all the info I needed based on my circumstances - I made the decision based on this info and not that of our accountants.

Now looking to ditch them!

Khushy

Eric Mc

122,789 posts

271 months

Monday 3rd September 2007
quotequote all
Did they issue you with a Letter of Engagement?

A fixed fee is fine as long as both parties know EXACTLY what the fixed fee is supposed to cover. I tend to agree fixed fees in advance with my clients. If the fee turns out to have been too low - too bad for me. However, I will explain the situation to the client and tell them that future fees will need to be increased to reflect the true amount of work being carried out on their behalf. Most clients are fair and will pay the extra PROVIDED they are told about the situation in advance.

Nothing peeves clients off more than receiving an unexpectedly high fee.