File full or filleted accounts?

What do you do?

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We pretty much always file filleted accounts at Companies House for clients.

We have recently taken over a client from a large firm of accountants, who have always filed full accounts.  Client is nervous that if we don't file full accounts this year, it will look odd.

Obviously we will file whatever the client wants, but is there any good reason not to file filleted accounts?  Why provide more info than you need to?  If anyone needs full accounts they can be provided, but why put info in the public domain that is not required?

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By Truthsayer
26th May 2020 09:31

The client is worrying about nothing, though you may as well humour them. Almost nobody looks at any small company's accounts, filleted or not, so it really doesn't matter which you file.

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By johngroganjga
26th May 2020 09:35

Are you are the client is small enough to have the option?

Just wondering if that is the reason why full accounts have been filed hitherto?

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Replying to johngroganjga:
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By snickersinatwix
26th May 2020 10:16

not aware of any reason why they have filed more than they need to in the past.

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By ireallyshouldknowthisbut
26th May 2020 10:07

I have never understood why it would be to the clients advantage to over disclose.

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Replying to ireallyshouldknowthisbut:
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By snickersinatwix
26th May 2020 10:15

me neither, but was waiting for someone to educate me otherwise!

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Replying to ireallyshouldknowthisbut:
paddle steamer
By DJKL
26th May 2020 10:54

If we are at early stage diligence of prospective tenants for a unit, and there are multiple possible candidate companies competing, we may do a very brief review on Companies House, what is available there may initially flavour our inclination for one over the other.

Whilst full diligence later may well get the likely tenants to furnish us with three years full accounts, if a lot of possible tenants (can happen with cafes/bars/etc , have done lease closing dates in past-how ironic given where we are now likely to head), the business can be out of the running before we really get started just on the basis of what is readily available for me to review- I would not, say ,do detailed checks re more than 3 or 4 candidates so the others may get discarded at stage one based on what they have published.

Whilst the numbers within the accounts not their layout is key, the more information available to me initially the more chance that say a poor balance sheet gets excused by stronger trading etc.

I would also in passing mention that a fair few accountants do not appear to even give their clients full accounts, often when we ask for full accounts tenants send us abbreviated sets and when we query claim it is all their accountants gave them.

Given I expect to have to support quite a few tenants over the next year or so, ensuring timeous information available, without the landlord having to chase around for it, may make life a lot easier for tenants, with well over 100 commercial tenants we will not be wasting a lot of time chasing/requesting accounts so over disclosure could turn out beneficial.

Maybe not a strong reason, but a reason, why over disclosure can assist your clients.

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Replying to DJKL:
RLI
By lionofludesch
26th May 2020 13:10

DJKL wrote:

I would also in passing mention that a fair few accountants do not appear to even give their clients full accounts, often when we ask for full accounts tenants send us abbreviated sets and when we query claim it is all their accountants gave them.

Abbreviated accounts - I remember those.

They should've disappeared about five years ago - what do you get now ?

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Replying to lionofludesch:
paddle steamer
By DJKL
26th May 2020 13:47

Are you sure it is that long? Maybe it is? Afraid software I used just had a button for "accounts for Registrar" so I expect my terminology is suspect.

Perhaps I ought to rephrase, accounts with no I & E or P & L.

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Replying to DJKL:
RLI
By lionofludesch
26th May 2020 15:40

Abbreviated - something we used to do.

Abridged - something nobody does.

Filleted - just for Companies House.

All mine get full accounts - they don't get asked - with a detailed trading account.

FRS105ers also get a more detailed Balance Sheet.

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By paulwakefield1
26th May 2020 10:21

Once upon a time it could be useful to get improved credit ratings. I doubt it would have any such effect these days as the credit agencies have become more sophisticated.

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Flag of the Soviet Union
By thevaliant
26th May 2020 10:30

I'd agree that filing the filletted accounts is usually the best option, but sometimes (very rarely) clients want to file full accounts for some reason or another. I have had two in recent memory.

One was a new startup, who wanted to portray that he wasn't just the usual 'here today, gone tomorrow' type. Despite being MICRO, he filed FRS102 FULL accounts and included a strategic report(!). He did this for three years until his credit score had improved and then went to just filing micro accounts once established.

We have one other who we don't file for (don't ask). We provided them full with back pages, full accounts and filing copy. They filed the full with back pages despite us telling them not to. After a few years they then started filing just full, though they could file the filing copy only. There is a reason... they are.... uhhhh.... a local interest company and if they filed the minimum information all of a sudden they'd have the local rag after them, "Why have you done this now? Are you going bust?"

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By Cheshire
26th May 2020 10:31

Is it not possibly just about the original accountant not having a clue?

I've just the submitted accounts for someone who claimed to have been an Accountant (10 years), right old mess, full accounts one year, this years over disclosed micro showing 2017 figures as 2018 and 2018 as 2019!

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Replying to Cheshire:
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By snickersinatwix
26th May 2020 10:46

I would hope not - their previous accountant was a top 50 firm, charging them a small fortune. But does not always follow.....

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Replying to snickersinatwix:
John Toon
By John Toon
26th May 2020 11:03

Not often that top 50 firms get this type of thing wrong, although that's not to say they haven't in this instance. So, I'd double check your thinking, clarify with the client and then file filleted accounts if you're happy with the reasoning

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Replying to johnt27:
Flag of the Soviet Union
By thevaliant
26th May 2020 11:45

In my personal experience, being large usually doesn't mean getting it right.
Especially with small clients, they are probably farmed out to first or second year juniors. Manager involvement will be a glance at the balance sheet to make sure it balances. Partner involvement will be non-existant.

We've just taken over a client from a big four. The previous accounts were shocking. No management P&L prepared. Full accounts seemed pre-FRS102 (disclosure of leases under Land and buildings and Other - not required since 2015). Disclosure of share capital in a note (not required) and reserves in a note (not required - should be under the SoCE). Rounded to £'000 (inappropriate given the size of the client). Disclosure of wages clearly don't work (Ers NIC is about 15% of salary bill, clearly impossible). Put simply, a load of old rubbish. They balance. That's about all I can say for them.....

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By Crouchy
26th May 2020 12:02

we always file fillted accounts and never really give clients the option, but most prefer to file as little info as possible

we have only one client who insists on filing full accounts - no idea why

either way its not much of a hardship as your software should just chuck out the different formats

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By Neil Douglas
27th May 2020 10:14

No reason why they shouldn't just file the filleted accounts, as you say why provide more than is required and also less chance of any issues or rejections!

Neil Douglas
Eureka Software.

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Red Leader
By Red Leader
27th May 2020 11:00

I don't think I've ever filed full accounts, other than perhaps by clicking the wrong button!

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By sammerchant
27th May 2020 17:25

Discuss the full filed accounts of the previous year with the client showing what information his competitors might glean from it. Then show him the filleted version for the current period. He'll soon agree to file the filleted.

I got a client by showing him what the previous accountants had filed and what information ANYONE could gather. He was only too happy to switch to a more discreet accountant.

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ALISK
By atleastisoundknowledgable...
27th May 2020 18:11

For FRS102, we quite often file abridged registrar accounts as there’s no debtor/creditor B/S analysis.

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Replying to atleastisoundknowledgable...:
ALISK
By atleastisoundknowledgable...
27th May 2020 18:11

atleastisoundknowledgable... wrote:

For FRS102, we quite often file abridged registrar accounts as there’s no debtor/creditor B/S analysis.

Obviously I meant FRS102s1a!

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Replying to atleastisoundknowledgable...:
RLI
By lionofludesch
27th May 2020 18:25

atleastisoundknowledgable... wrote:

For FRS102, we quite often file abridged registrar accounts as there’s no debtor/creditor B/S analysis.

Is that what the shareholders and HMRC get ?

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