An interesting article in Accountancy Age reveals how a culture of DIY accounting could be contributing to a rise in businesses failing to properly file their accounts.
However, the rise in Companies House rejections may also be down to businesses making do with unqualified accountants.
Accountancy Age reveals that one in ten accounts filed to Companies House have been greeted with disdain and given the hefty boot of rejection. And it’s all down to ‘formatting errors.’
The revelations illustrate the importance of employing the services of a properly qualified accountant. It may also reflect an attempt by some small businesses to cut their business costs as they feel the effects of the current economic squeeze.
As Kathryn Cearns, a member of the ICAEW’s Financial Reporting Committee, explained:
“As we all know, it only takes one technical breach along these lines for a company to incur a fine and put the directors in breach of their duties for filing accounts.”
Read the full article here.