Audit, Accounts & Tax Compliance
The audit process is sometimes misunderstood and perceived as a more complicated set of accounts, or accounts with just a different Report.
However, in reality it is a highly sophisticated and heavily regulated in-depth review of a business and its accounting records and is governed by the Companies Act 2006, Auditing and Accounting Standards and Institute ethical guidelines. Auditors are highly regulated and monitored to ensure they perform their audits and run their practices to an exacting standard.
An audit is compulsory under the Companies Act 2006 for some companies, LLPs and other organisations because they:
- exceed statutory limits on turnover or assets or
- are public companies or
- are required to have an audit as a condition of their Articles
However, even those companies that fall outside the compulsory audit regime can elect for an audit, because they want the satisfaction and comfort of having a thorough analysis of their accounting records and systems, rather than a more cursory and light touch review.
The new audit limits, above which an audit is compulsory are:
- Turnover above £6.5M or
- Total Assets (excl liabilities) of £3.26M
- 50 employees
Exceeding any two of these limits requires a company to have an audit by a Registered Auditor. Cameron Baum are registered and have considerable audit experience, across a wide range of sectors.
Most small businesses have either an in-house or outsourced bookkeeper who run the management accounts on a branded accounting software (eg. SAGE, Quickbooks, Xero etc).
We are usually presented with the data in the form of a USB Backup and asked to produce the annual accounts and tax computations.
We have extensive experience in both this type of accounts preparation, which often requires our intervention to correct bookkeeping errors and omissions and also the higher level accounts, where the business presents us with draft accounts, but requires help in completing the more detailed notes and tax computations.
During this process, although not an audit, our staff are trained to be aware of the general business, possible inconsistencies or business trends (eg. Falling margins, lengthening debtor days, cash flow issues) so that the partners can then help the business act on these before they become damaging.
All trading businesses and individuals in the UK are subject to UK tax legislation and the management of this complex and often bewildering area is an area in which we have wide ranging and in depth experience.
The partners have a sound knowledge of all the major taxes (Income Tax, Capital Gains Tax, Corporation Tax, VAT, PAYE/NI etc) and their interplay, as well as a wealth of experience in helping clients arrange their affairs so as to minimise their exposure to tax.
Where detailed knowledge of the more obscure areas of tax are required, we have a variety of sources and tax consultants, on which we can draw for more information.
The important point is that our wide ranging knowledge of both tax and business and the interplay between business and personal tax allows us to look at the whole picture and not just a small area.
We prepare company, partnership and individual Tax Returns as well assisting companies with their PllD and P35 Payroll Returns commitments. Our ability to plan ahead helps to minimise the tax liability and ensure full compliance, leading to a quiet life from HM Revenue & Customs.