Startup Accountants Guide to Small Companies Audit Requirements

Startup Accountants' Guide for Small Business

Startup Accountants Guide to Small Companies Audit Requirements

Startup accountants come to your rescue in case you’re still trying to figure out your accounts. At times, you don’t need an audit for your private company. 

You need an audit if the startup accountants tell your company’s article of the association says you need it.  The other scenario is when your shareholders ask for one. 

 

Financial years that begin on or after 1 January 2016- Startup Accountants Guide

 

Your company may qualify for an audit exemption if it has at least 2 of the following:

  • Annual turnover of no more than £10.2 million
  • assets worth no more than £5.1 million
  • 50 or fewer employees on average

 

For financial years beginning between 1 October 2012 and 31 December 2015

 

Your company may qualify for an audit exemption if it has at least 2 of the following:

  • An annual turnover of no more than £6.5 million
  • Assets worth no more than £3.26 million
  • 50 or fewer employees on average

 

Audit exemption statement

 

You must include the following statement on the balance sheet of your accounts if you’re using an audit exemption.

Expect an exemption under section 477 due to the company’s act 2006.

Most of the time, companies are not required to obtain an audit under section 476.

As a director, all you need to do is comply with the requirements of the Act. A startup accountant sorts out your accounts in such a way that your accounting records come into play with the preparation of accounts.

 

Shareholder Audit and Startup Accountants 

 

  • Get your accounts audited. Even if exempted from it. If the shareholder’s audits 10% of the shares, the best part is to get your accounts audited. 
  • Individual or collective, the startup accountants recommend for both types.
  • Write a request in writing and send it out to the company’s registered office. 
  • You can expect the request to be there at least one month before the end of the financial year. That’s the time when you’ve requested the audit.

 

Companies that must have an audit: Usually FCA registered Companies

 

Your company must have an audit if at any time in the financial year it’s been:

  • A public company (unless it’s dormant)
  • Subsidiary company (unless it qualifies for an exception)
  •  An authorized insurance company or carrying out insurance market activity
  • Involved in banking or issuing e-money
  • Markets in Financial Instruments Directive (MiFID) investment firm or an Undertakings for Collective Investment in Transferable Securities (UCITS) management company
  • Corporate body and its shares have been traded on a regulated market in a European state

Please let us know if you need to get an Audit done, we will get this done through our partner firm.

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