mortgage broker wants Limited 'audited accounts' 2 years worth- what are they

[Stag Cozier]

Audited means your accountant or should I say auditor has to scrutinise your transactions, do substantial tests on your figures and give an opinion as to whether the accounts are true and fair. Oh, and they charge you £1000's for the pleasure because they have to cover themselves for insurance since their name goes on the auditors report.

Speak to your broker and tell them it's a small company and unaudited accounts are done every year since your turnover is less than £5.6m (I assume anyway )

[northernladuk]

Thanks - Can you exlain why not?

I thought small companies had to have audited end of year accounts - I could well be wrong here.

Naturally...

[pcitshop]

audited and non audited accounts

Audited accounts contain auditors report under auditing standards and non audited accounts simply contain accountants report, these days its optional to include accountants report in year end accounts

[Nixon Williams]

Thanks - Can you exlain why not?

I thought small companies had to have audited end of year accounts - I could well be wrong here.

The Companies Act only requires a company to have an audit if the turnover exceeds £6.5 million and/or the gross balance sheet amount exceeds £3.26 million.

So, most companies fall below these amounts and are exempt from having to have an audit.

Most companies still use an accountant to prepare the annual accounts and in most cases there is little difference between the unaudited and audited accounts, apart froma higher bill!

Alan

[northernladuk]

Last time I started this process the lender just wanted proof of income and they had a process to allow me to give them my accountants details and they would contact him for proof. Didn't mention audited accounts and were quite happy that I didn't have 2 years at the time as I had only been contracting 18 months or so. They would just take this and add it to the permie bit I did before that. Seemed very straight forward and part of standard process rather than having to jump through hoops like I thought I would have to. Didn't finish the process in the end but seemed ok up to the point it fell through.

[DeludedAussie]

Most small companies no longer need to have audited accounts, however many banks and brokers do not realise this.

Accounts prepared by your accountant should not be a problem, usually your accountant can prepare a forecast for the second year, this is certainly this is what we would do for our clients.

Alan

Thanks - Can you exlain why not?

I thought small companies had to have audited end of year accounts - I could well be wrong here.

[Nixon Williams]

Most small companies no longer need to have audited accounts, however many banks and brokers do not realise this.

Accounts prepared by your accountant should not be a problem, usually your accountant can prepare a forecast for the second year, this is certainly this is what we would do for our clients.

Alan

[LisaContractorUmbrella]

A mortgage broker wants Limited Company 'audited accounts' 2 years worth- what are these " audited accounts reports exactly" ?


My Limited company was instated 2008 Nov and I only remember 1 financial report being prepared if thats what he mean

I keep my tax payments and books (accounting spreadsheets) in order btw via my accountant and have paid 1 lot of Corporation tax, next one due around Summer.

They are the financial statements that your accountant should prepare for you at the end of each financial year; they are sent to both HMR&C and Companies House. Unfortunately you will not be able to provide this information until the accounts have been prepared for November 2010 as you will only have been trading for 2 years at that time.

[sbakoola]

A mortgage broker wants Limited Company 'audited accounts' 2 years worth- what are these " audited accounts reports exactly" ?


My Limited company was instated 2008 Nov and I only remember 1 financial report being prepared if thats what he mean

I keep my tax payments and books (accounting spreadsheets) in order btw via my accountant and have paid 1 lot of Corporation tax, next one due around Summer.