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10 Sep 2010
A high rate of failed accounts filings at Companies House could be due to a move away from using qualified professionals to undertake the task, advisers have warned.
Accountancy Age revealed last week that one in ten filings to Companies House had been rejected due to formatting errors.
Advisers believe that there a number of potential reasons for the high rate: that companies might be using un-qualified accountants to file on their behalf; changes to filing format rules have caught out filers; and Companies House has increased its vigilance.
“The compliance and regulatory side of the business is becoming increasing price-competitive and we continue to compete with unregulated and unqualified practitioners," said Will Abbott, a partner at Randall Payne.
"I am sure there are more and more unrepresented directors of the smallest companies trying to submit their own accounts, thinking that is a good strategy in the tough economic climate, and undoubtedly that is inflating the rejection statistics," said James Abbott, a tax partner at Baker Watkin.
"It suggests that Companies House are getting a bit ‘picky’ with regard to some sets of accounts which are not up to standard," said Anthony Harris, director at Critchleys. "But this is good as in the past I have seen some disgraceful wholly non-compliant sets of accounts just accepted by Companies House, which has failed to highlight to directors where they are failing."
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Briefings
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Visitor comments Add your comment
Unqualified what?
What are "unqualified professionals"? I thought "qualified accountant" and "professional accountant" meant the same thing.
Posted by: Neville Reid, 10 Sep 2010 | 00:00
ACCOUNTS FILING
Companies House Accounts do not appear to be signed
Posted by: W L L Lambeth, 10 Sep 2010 | 00:00
What about the accounts they let through?
Never mind the rejections. What about the accounts they put onto the register? I have recently seen one company's accounts filed for several years without any comparatives. Another company failed to show any reserves brought forward or share capital.
Our trainers advise us CH staff will pick up accounts not being signed in black pen! Talk about gnats and camels!
Posted by: Charles Stringer, 10 Sep 2010 | 00:00
Company Filing
I think this is just the highly priced accountancy profession have a moan. Small accountants charge ridiculous amounts for very simple sets of accounts
Posted by: I Bate, 10 Sep 2010 | 00:00
What's the actual problem?
I suspect that many SME owners with a modicum of accounting understanding would prefer to do themselves. Why waste money?
Knowing companies house one suspects that containing the right 'legal clause' or signed off in multiple places (!)etc is the most prominent.
May I suggest that perhaps we should simplify the legal guff and protocol that nobody other than Companies House reads which is a simpler solution.
Accounts are accounts aren't they or am I missing something about the turgid bureaucracy this country continues with?
Posted by: N Higgins, 10 Sep 2010 | 00:00
DIY filing is dangerous false economy
Costs saved by not employing an accountant could ultimately result in fines and, even worse, criminal charges against the directors themselves. Business owners are increasingly understanding the potentially significant benefits of partnering with accounting experts not only for production of year end accounts, but also for monthly management reporting and cashflow control which is critical to the success of the company, particularly in this economic climate. Accountants need to offer a cost-effective, multi-tiered service in order to successfully meet their client's requirements.
Posted by: Catherine Davis, Urban Ledgers, 15 Sep 2010 | 00:00
Poor quality accounts still being accepted
I have seen plenty of poor quality accounts that don't balance, have notes that make no sense and with comparatives which do not even come close to matching the previous years figures published on the Companies House website, yet I had some accounts rejected for being under the wrong Companies Act (when in fact they were under the correct Act and Companies House had rejected them in error). I am all for improving the quality of accounts filed with Companies House, but maybe we should start with some very basic quality checks like a balance sheet that balances rather than the colour of the pen used to sign!
Posted by: Em, 15 Sep 2010 | 00:00
Filing rejections
"Small accountants charge ridiculous amounts for very simple sets of accounts"
But nowhere near as much as large firms !
I think much of the rise in the rejections is due to the goalposts being moved as regards the director's signatures, which now need to be printed as well; this caught out many initially, including myself.
Posted by: Anthony, 15 Sep 2010 | 00:00
Accounts
Preparing & filing accurate, timely & robust accounts is a discipline. Inaccurate, sloppy accounts speak volumes for the Company. Presumably, a Company should not present poor quality accounts to its Bank in application for a Loan.
Posted by: Stewart, 15 Sep 2010 | 00:00
simple accounts ? yeah right
These accounts are not as simple as some respondents think as the error rate shows.
If the accounts are not compliant for companies act purposes then they are not compliant for Corporation tax purposes either. Some quite clearly show tax errors. And it is an offence for a director agree and file such a set of erroneous accounts - £5K fine. Unfortunately companies house have become the ministry for disinformation.
Posted by: Spike, 05 Oct 2010 | 00:00