I have a friend who is opening a drama school for young children. Does she need to follow the same accounting principles and standards as any other small business or do special rules apply based on the type of business?
Replies (5)
Please login or register to join the discussion.
Is it a sole trader? partnership? limited company? Community Interest Company? Charity? something else?
That will have a bearing on the accounting arrangements.
The business might be able to use the micro entity rules. I would strongly recommend getting an accountant involved if there is not one in place already.
http://www.mercia-group.co.uk/Downloads/Micro-entities%20Q%20and%20A%20a...
There's a lot more to running a ltd company than bookkeeping. Your friend will need to understand her responsibilities under the Company's act, not only for now but as situations may arise. The only way she is going to be able to do that will be to take Scalloway's advice and get her business a good accountant if she hasn't already got one.
Unless there is some liability to protect, I am unsure as to why your friend thought a limited company with two directors was the best way to set up this business.