Using Quickbooks but how replace accountant?

skydyed

My business has gone from employing nine people to just myself doing odd-jobs with no social welfare entitlement (sold home to raise money to keep my men in work but it didn't last long so had to let them go - okay, bad business decision but they had families and mortgages).

As I'm only doing very small business now, I can't afford to pay an accountant 2k for doing accounts on a years earnings of 12k - so need to do my own final accounts (I'm exempted from an official audit as earning under 1.5 million). I'm using Quickbooks for general accounts.

Is there an Excel or other template that can lay out my accounts in audit form that is acceptible to the companies office? I know some will think I'm being stingy but I don't earn enough to support my family let alone pay an accountant a quarter of my earnings (after costs).

J.Ryan

Hi,


I sent you a PM, but I forgot to mention that audit exemption is based on size and timing criteria.

The following is from the Companies Office website


In respect of the financial year concerned:

• The company must be a company to which the Companies (Amendment) Act 1986 applies i.e. a Private Limited Company;
• The amount of turnover of the company must not exceed €7.3 million;
• The assets of the company are less than €3.65 million at the end of its financial year;
• The average number of employees must not exceed 50;
• The company must not be a parent company or a subsidiary company;
• The company must not come within one of 19 classes of companies listed in the Second Schedule to the 1999 Act; Please see Attorney Generals website for Second Schedule;
• The company's annual return, to which the accounts for the financial year in question are attached, must be furnished to the CRO in compliance with section 127 Companies Act 1963. This means that the return must be delivered to the CRO not later than 28 days after the company's Annual Return Date, or where the return has been made up to an earlier date, within 28 days of that earlier date. i.e.it must not be late in the current year;
• Furthermore, where an annual return to which accounts for the immediately preceding financial year was delivered to the CRO, that return must also have been filed on time. i.e. it must not be late in the previous year;
• the year in question must be the current year - section 32 provides that the directors must be of the opinion that the company "will satisfy" the conditions - use of the future tense precludes the decision being taken in respect of a year that has already ended.
• A company which satisfies the revised exemption threshold levels in a current financial year, the year in respect of which the audit exemption is being claimed, must also have satisfied those revised threshold levels in the preceding financial year.

Unless the financial year in respect of which the audit exemption is being claimed is the first financial year of the company, the company must also have satisfied all the conditions set out in section 32(3) in respect of the preceding financial year. For instance, if the most recent company's annual return with accounts was delivered late to the CRO or if the current years return is being delivered late, the company is not entitled to the audit exemption, notwithstanding that it may satisfy all the remaining conditions.





Regarding this point


the year in question must be the current year - section 32 provides that the directors must be of the opinion that the company "will satisfy" the conditions - use of the future tense precludes the decision being taken in respect of a year that has already ended.


To me that means that the financial year must be the current one, ie you cannot now claim exemption for the year ended (for example) 30th April 2010, as that year has already ended.

skydyed

Very good point. My last year was Jan to Dec 2009 so I'm not exempt for 2009 and would have to find the money for that from somewhere but, as the current year is Jan to Dec 2010, I can avail of audit exemption for 2010. I'm also okay on all the other points listed.

The site says "the audit exemption does not grant a company any exemption from the requirement to prepare a full statutory set of accounts which give a "true and fair" view of the state of affairs of the company, and to lay those accounts before the AGM of the company, or from the requirement to annex accounts in the format laid down by the Companies Acts 1963-2006 to its annual return which is filed in the CRO."

So, I would still have to make returns for 2010 - and would presumably have to do so in the standard accounting format the accountants use? If so, is there an excel or other template to do this with?

J.Ryan

Most firms, my own included use accounts software that issues a proforma and then we format as required on each assignment.

If you still wish to prepare you own audit exempt financial statements for the 2010 year is to use the 2009 Financial Statements your auditor gives you and transcribe into word (a long and tedious proposition I know), just, take care to remove any references to audit or auditor (in the directors report, company information, index & auditors report etc.,) . Most of the disclosure requirements will remain the same, just ensure that you update them.

If you have a long term relationship with your existing auditor, ask them to reduce the fee.