Accountant question

[oyster]

I am the secretary for my residents freehold association - whatever it's called, and it's time to do the annual accounts.
Do I need an accountant to do this or can I do it myself? They are so simple it'll only take a couple of hours.

[ewenm]

I think you need an accountant to sign them off (we did in our residents' association).

[sadoksevoli]

You need an accountant, an auditor, a couple of lawyers, probably a barrister and a good shredder.

[nownek]

You can draft the accounts yourself. There is then a question as to whether you need any sort of audit which will depend on the terms of the association's charter/articles/etc

What is the status of the association- is it just an unincoroporated association or something more formal (eg company limited by guarantee)?

[littlegreenfairy]

I think you might be too involved to be able to do the accounts and sign them off - vested interest if you like.

You could do them, then get the approved by an accountant I suppose...

[LadyHayles]

You only have to have audited accounts if your turnover is £5million or over.

Anything under this then your annual accounts can be abbreviated or "Financial Statements". But I really would advise that you get an accountant to complete them for you. This is a good idea for two reasons (a) you know they are done correctly and (b) if gives you the peace of mind that someone independant has looked at your accounts and is happy that everything is ticking along nicely.

Edited by LadyHayles on Wednesday 22 October 14:41

Edited by LadyHayles on Wednesday 22 October 14:41

[chris_w666]

The way you produce your accounts depends on the kind of organisation, i.e. your legal status.

[nownek]

LadyHayles said:

You only have to have audited accounts if your turnover is £5million or over.

Anything under this then your annual accounts can be abbreviated or "Financial Statements". But I really would advise that you get an accountant to complete them for you. This is a good idea for two reasons (a) you know they are done correctly and (b) if gives you the peace of mind that someone independant has looked at your accounts and is happy that everything is ticking along nicely.

Edited by LadyHayles on Wednesday 22 October 14:41

Edited by LadyHayles on Wednesday 22 October 14:41

Not so quick- you might also need an audit if there is a particular legal or contractual need for it apart from being a company that exceeds the net asset/turnover limits. For example, if the members of the association have agreed that any accounts will be subject to audit.

You also seem to be assuming (excuse me if not) that these are corporate accounts- if not, and the person preparing them is competent, I wouldn't be so sure that an independent accountant's opinion is going to represent good value for money. I'm speaking as an accountant.

Ultimately it's up to the members of the association but from the limited facts outlined there is no requirement for the accounts to be prepared by an accountant.

[JagLover]

The accounts for a residents association would be a little more involved than that for a sole trader etc because they have to produced in a format compatable with the companies act otherwise they will be rejected by Companies House (assuming you are incorporated that is). Hence I believe most residents associations have the accounts prepared by a local accountant. As long as decent records are maintained and the number of flats/houses is fairly low the charge will be relatively low.

They only require to be audited if required by your memorandum and articles of association.

Edited by JagLover on Wednesday 22 October 14:55

[oyster]

In that case anybody know of an accountant in the Egham/Staines area who might be able to do these at very short notice?!!

[Eric Mc]

Is your association a limited company?

[oyster]

Eric Mc said:

Is your association a limited company?

Yes it is.

[Eric Mc]

There is no legal requirement for small company accounts to be audited, reported on or even prepared by a qualified accountant. However, all limited company accounts have to be prepared in accordance with Companies Act layout and disclosure requirements and there are very few non-accountants out there who would be able to prepare the accounts to these types of standards.
If non-compliant accounts are submitted to Companies House, there is a good chance that they will be rejected.