A potential client has contacted me.
I looked up the dormant company accounts on Companies House. Net Current Assets look OK. He has an amount for Provisions for Liabilities. He then has Net Assets.
I ask what the provisions for liabilities are made up of. He says it's the Net Current Assets less Net Assets! I ask him what kind of expenses have been included in there. He says it's just a computation!
I try another tack. "What are the Net Assets made up of? He said "Net Current Assets" less "Provisions for Liabilities"!
I said that I dont have any confidence in the accounts. He said: "Companies House accepted them!" I say they accept accounts whether they are right or wrong.
I looked at the Net Assets of £1,128 and then I looked at the Total Equity of £1,215. He couldn't even get the Balance Sheet to balance!
He says he's completed the submissions himself but an "accountant" prepared the "accounting computation" (whatever that is!).
When I looked through the accounts submitted to Companies House I see that another company's bank transactions have beene added on to the accounts!
He was only wanting me to close down the company and do his self assessment tax return going forward (he's also supposed to be a sole trader) but I think he's too big a risk and I dont like having anything to do with a company that there is a large chance that the tax has been calculated wrongly.