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Limited Company Accounts

  • Student
  • 58 posts
  • # 97191

Hi all,

Can anyone please tell me what level of membership I need to prepare final accounts for limited companies?

Cheers

Eb.

  • 356 posts
  • # 97202

Level 4 will allow you to prepare company accounts

  • 29 posts
  • # 97203

Can they not be drafted once you have passed the level 3 exams?

  • Student
  • 58 posts
  • # 97204

As far as I understand it anyone (even with no qualifications) can produce final accounts but only a member of one of the recognised accounting bodies can audit them. The bit I'm struggling with is finding the information on the ICB website that tells me what the ICB Practice Licence (and therefore professional indemnity insurance) covers me for at the various levels.

Eb

  • 29 posts
  • # 97218

Here is a link to the page http://www.bookkeepers.org.uk/Membership it tells you what you can and can't do at each level.

If you are a member of the ICB you need to be qualified and have a practice licence to do the final accounts. Once you have a practice licence and passed level 2 exams you can do final accounts for sole traders only, then once you have passed level 3 exams then you can draft for limited companies and partnerships.

Here is the link to the info about the practice licence, http://www.bookkeepers.org.uk/Resources/Running-a-Practice the licence and insurance will only cover you for what you are qualified to do.



Edited at 21 Jan 2014 03:34 PM GMT

Edited at 21 Jan 2014 03:37 PM GMT

  • 153 posts
  • # 97219

As has already been said, you need level 4 to be able to prepare final accounts for limited companies and also it's level 4 that covers the corporation tax return which goes hand in hand with the accounts.

At level 3 you can prepare draft accounts, but the syllabus doesn't cover enough for you to be able to finalise them, nor does it cover corporation tax at all. Legally, anyone can prepare the accounts, but ICB regulations - in line with the other institutions -are that members can only practice at the level to which they are qualified.

  • 29 posts
  • # 97225

Sorry, I misinterpreted the question.

I couldn't see anything on the website about being able to finalise them so i presumed by prepare it was meant to draft them for the accountants.

  • Student
  • 58 posts
  • # 97230

Thanks for your replies and my apologies for the ambiguous English!

What I meant to say was produce final accounts and calculate corporation tax which a director will then sign, then I submit to HMRC and Companies House. The companies I have in mind are those 'One man/woman bands' who provide contracting and consultancy services through a Limited Company. Most companies are far too small to require a professional auditor to check the accounts.

I agree with you Kelsmic, the ICB website seems a bit vague and at level 4 mentions "Drafting financial statements" which doesn't quite seem to fit the bill.

Eb



Edited at 21 Jan 2014 05:38 PM GMT

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