Qualified/Non qualified accountants

[Saffy]

A quick question I have opened a business and I thought I would be able to handle my own accounts obviously I was wrong I have a friend who was studying the ACCA but then she started a family so she didnt continue with it shes worked in industry as well as practise would she be allowed legally to do my accounts for me or not??
Would this be ok by HMRC rules??
If I didnt use her and went to a chartered accountant how would I know this??? Where could I get info from as to whether someone is qualified or not because at the end of the day anyone can state they're an accountant cant they??

[Indizine]

You are quite entitled to do your own accounts and submit them to HMRC however it takes some getting your head around if you are not familiar so all things considered, it might be wiser to pay at least a book keeper if you have a lot of paperwork, and accountant for the year end stuff, or do your own book keeping and then still use an accountant once a year. Are you a sole trader or Limited Company?

[Saffy]

thanks for this im self employed/sole trader..
im looking to recruit a couple of people purely because the business is expanding
cant an accountant do the book keeping?? id much rather stick with one person as it will make my life easier!!!
would hmrc allow my friend to do my accounts for me even though shes not qualified??
is this illegal??

[Nilesh Mandvia]

There are few issues if your friend were to do your accounts. If she is still a student member of ACCA, then ACCA's rules prohibits her from doing tax and preparing account. She would be able to do bookkeeping, vat and payroll.

If she is not a member of any supervisory body as per Money Laundering rules, she needs to register with HMRC to offer any kind of accounting services.

Thirdly, she may not have insurance cover to protect her and you if she makes a mistake.

Generally the professional bodies do have their members’ directory on their website. Also you can ring them and check with the relevant professional body whether a person is a member of the body and hold practicing certificate. I am a member of ACCA, so if you go to ACCA’s website where you can find details about me and the certificate I hold.

HTH

Nilesh

[Saffy]

thanks for that!!!
shes got all the relevant experience from working in practise and industry, I'm not too sure if she is still a member..
What kind of accounting services can she offer by going through the HMRC route???
If she is still a member of the ACCA what kind of accounting can she do??

where do I need to look on the ACCA website???

[Nilesh Mandvia]

thanks for that!!!
shes got all the relevant experience from working in practise and industry, I'm not too sure if she is still a member..
What kind of accounting services can she offer by going through the HMRC route???
If she is still a member of the ACCA what kind of accounting can she do??

where do I need to look on the ACCA website???

You can search Here . This directory is for full members. It does not include student member.

What she can offer is here and here .

[accounting solutions]

Hi Saffy,

Replying to your question 'cant accountants do bookkeeping'? The answer is yes, usually accountants employ or outsource their clients bookkeeping. You will pay alot more for your accountant to do it rather than find a bookkeeping that can do your bookkeeping, management accounts and payroll for you, do all the year end adjustments needed, then they should be able to either advise you to get an accountant to complete your tax return (dependant on how complicated your business is & other factors) or some bookkeepers are certified so they can complete your accounts for you. The difference in price, especially for bookkeeping & payroll costs, in my experience can range from 30 - 60% higher for the accountants practice to do it.

Hope this helps you

Regards,
Jodie

[James Smith]

I certainly wouldn't use an accountant to do my bookkeeping, and at the same time I wouldn't use a bookkeeper to do my tax, although some accountants do offer a bookkeeping service.

Back to the question, be sure your friend has the COMPETENCE as well as the willingness to help. From what you say they should make short work of the bookkeeping side, but probably would prefer somone who actually does this as a day job looks over the tax side of things. Its a full time job just keeping up to date - something you don't need to do in industry.