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Companies house, filing errors, and online accountants

Companies house, filing errors, and online accountants

Companies House recently revealed that 10 per cent of all accounts filed have been rejected due to basic errors in regards to formatting.

The administrative body, which is responsible for holding all business records throughout the UK, has issued a request for all businesses to get their accounts properly in order or face the consequences, which could include being penalised.

Nearly 91,000 separate accounts faced rejection during the first half of 2010, with almost one third being rejected due to their statutory statements being filed incorrectly; Companies House refused to accept 33,349 accounts due to this error, while other common errors were balance sheets with signatures missing or duplicate accounts with conflicting figures.

Private companies can be hit with a late filing penalty of up to £1500 if their submitted accounts face rejection too close to the deadline for filing.

ICAEW’s Financial Reporting Committee member Kathryn Cearns stated that a percentage of the errors could have been caused by newly-enacted legislation; she said that while the Companies Act going into effect undoubtedly caused some of these technical errors, the fact that Companies House instituted some rules changes of its own could be a contributing factor as well.

In related news, the high rejection rate of accounts filings may be due to limited companies moving away from employing qualified professionals, such as online accountants, to engage in the task, some business advisers have cautioned.

Business experts have declared that a combination of a more vigilant Companies House, in conjunction with companies utilising under-qualified accountants to do any filing work for them, have contributed to the high rate of rejection.

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Image: Message error 404 by CyboRoZ

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