Companies House accounts not balancing

Companies House accounts not balancing

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A potential client has received a letter from Companies House along the lines of:

It has been brought to our attention that the company's accounts don't appear to balance. The directors may wish to file revised accounts. If you decide not to file amended accounts, there would be no further action taken as this letter was sent to you as a courtesy.

Are they not supposed to reject accounts that are wrong?

 

Replies (15)

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By rmillaree
14th Sep 2023 15:54

I suspect once they are on the record they are less likely to ever be removed by them - ring em and ask em and they should advise the score as to how they operate.

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Caroline
By accountantccole
14th Sep 2023 16:37

Nope - I have had a few where I am amazed they have been accepted - sigh. It almost makes the publication of them a waste of time if there are no checks

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By Ruddles
14th Sep 2023 17:02

AS wrote:

Are they not supposed to reject accounts that are wrong?

Not unless they've been signed with blue ink. Otherwise, anything goes.
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By Wanderer
14th Sep 2023 18:25

When we used to submit on paper I once had a set of abbreviated accounts rejected by CH on the basis that the company name was wrong.

Much head scratching as to why, then worked out that somebody at CH had written on them the company number for a company called 'Abbreviations Ltd'.

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RLI
By lionofludesch
14th Sep 2023 18:57

Significant that CH didn't notice.

Somebody complained.

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By Matrix
14th Sep 2023 19:12

I noticed multiple years of accounts with different brought forward balances on the reserves to those previously filed. So the comparatives change each year.

The accounts were for an accountancy practice…..

How difficult would it be to put simple checks in place and, as you say, reject them?

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By Tax Dragon
14th Sep 2023 20:59

Once you start down this road where do you stop?

How much do you want the filing fee to be?

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By GHarr497688
14th Sep 2023 23:51

I no longer know what its all about . It's just inputting anything and sending in it - no one cares of it's right or wrong and no one checks it. What's the point in taking pride in your work.

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Replying to GHarr497688:
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By Tax Dragon
15th Sep 2023 05:24

You work for Companies House, not your clients?

But Companies House is like an art gallery. Open 24/7 and big enough for the whole world (including suppliers and buyers) to fit through the door. (And see Lion's comment.)

Anyone can exhibit. Up to you if you present an unmade bed, a redhead in a seashell or a painted ceiling.

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John Toon
By John Toon
15th Sep 2023 11:41

There are no checks at Companies House on accounts with few exceptions, for many reasons, but mainly down to government ineptitude. So someone has complained and now CoHo need to take action.

FYI the only checks they do are typically on the balance sheet statements regarding audit/small co exemptions, making sure accounts are signed in black ink (although I think they let that slide now their scanners are a bit better) and that company registered as xxx Ltd doesn't file accounts that say xxx Limited

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Replying to johnt27:
By Ruddles
15th Sep 2023 11:54

I remember having a discussion with a CH member of staff, in paper-filing days, regarding the black/blue ink issue. I lost them when I explained that there is no such thing as black ink and threatened to attach a chromatograph of "black" ink to the accounts.

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Replying to johnt27:
Flag of the Soviet Union
By thevaliant
20th Sep 2023 13:27

I believe Companies House check five things:

1. Is the company name correct
2. Is the registered number on the balance sheet
3. Is there a document headed 'balance sheet' filed
4. Is the balance sheet signed (or electronic signed)
5. Is there either an audit report, or else a statement taking exemption from the audit made on the balance sheet

That's it. Nothing else. If the balance sheet doesn't balance, they don't care. Just that there IS a document marked 'Balance sheet' (or Statement of Financial Position).

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By Moo
15th Sep 2023 12:08

I've seen a few where the in house accounts system didn't pick up bounce back loans, that left a lop sided balance sheet that still was successfully filed. If nobody further back down the line noticed why blame Companies House?

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By Duggimon
15th Sep 2023 12:14

In terms of electronic filing of accounts at least, Companies House are supposed to take statutory filings from a source authorised via use of the authentication code and file them under the correct company's record. To do so they check the company name and company number and ensure these both match the record it is being attached to.

They do not assess the contents of accounts, that is not and has never been within their remit. The responsibility of policing the content of accounts is solely that of the directors and always has been, their checks are purely those required to fulfil their administrative requirements.

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By GDavidson
20th Sep 2023 11:03

Best ones I have seen are for Gupta's plants. They have just bunged in their management accounts with no audit or directors signature. Funnily enough they give a lot more information than statutory accounts would have have. Accepted by Companies House and are still there.

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