3 non-compliance company pitfalls to avoid
While this may sound obvious, it’s crucial that your clients comply with all regulatory requirements. Any mistake, no matter how small, could result in penalties that potentially damage both of your reputations. But there’s a fine line – how much compliance work should your clients handle on their own? And let's be real, compliance work involves a tonne of admin, so when is enough, enough? Well, here are three common non-compliance pitfalls accountants can find themselves tangled in, and some guidance on how to avoid them.
1. Letting clients change their own details without you knowing
Smaller clients and start-ups may be given online access to their accounts, and can tweak things from time to time, like billing and contact details. However, it’s not uncommon for clients to make changes to their company’s registered address, and not tell you until year’s end. This not only causes confusion, but could lead to compliance bumps down the road if isn’t spotted in time.
2. Companies House submission errors
Companies House’s website can be confusing at the best of times, but letting clients submit compliance documents themselves? No thanks. Submitting files like CS01s can often lead to submission errors, missed deadlines, and panic. You, on the other hand, know what hoops they need to jump through, the right file types, and all the other ducks you need to get in a row before documents are submitted to prevent corrections and penalties. And while we get that this can be more of an effort than it’s worth, we recommend investing in some type of company secretarial software that offers a confirmation statement submission feature.
3. Letting clients form their own companies
Many business owners form their companies online on their own, which can unfortunately result in incorrect and incomplete formation procedures. This ends up in them running to you for help, whichcan ultimately be a hassle for you, and an added expense for them. That’s why best practice is to set up your clients’ companies for them on their behalf. Like the other points mentioned above, it just makes life easier for both parties, and ensures a much smoother process that doesn’t end up in unnecessary stress and tears.
You could also include this in your onboarding package by stating that that any other companies that are formed in the future must go through the firm first. If you’d rather not take on this task at all, then it would be a good idea to have instructions on company formation somewhere on your website, or a guide outlining the procedure so they’re aware of all the steps involved. At the end of the day, you’re the one who’s responsible for ensuring your clients’ compliance, and that they understand the regulatory requirements that must be followed.
How company secretarial software can help
We get it. While these non-compliance pitfalls could be avoided, why should you bother with company secretarial software? Let’s break it down for you into three short reasons why you should use company secretarial software – more specifically, the latest addition to the family here at Bright, BrightCoSec.
Keeps client data synced with Companies House: We've got direct integration and sync with Companies House. No more juggling multiple systems or copy and pasting data. Submitting clients’ CS01s is as easy as a walk in the park.
Less confusion: Setting up a new company for your client? Navigating the labyrinth of the CH website can be a nightmare. Easily form companies and register PSCs through BrightCoSec’s user-friendly system, and help ensure accurate management reports for filing schedules.
Legal pack service: We offer a "peace of mind" legal pack service – so if you or your client ever has a question or needs legal advice, you can rest assured that we've got you covered.
Here at Bright, we create software for tax, compliance, practice management, payroll, and now company secretarial software. We’re on a mission to make a happy and efficient working life a reality for accountants through reliable software and amazing support. Let our company secretarial software be the secret weapon in your arsenal by booking a quick free demo below.
Written by Eleanor Vaughey | Bright
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Bright was created in 2021 when Thesaurus Software Ltd. and Relate Software Ltd. decided to join forces. Bright is a leading provider of accounting, payroll, tax and HR solutions to businesses across the UK and Ireland. We help thousands of accountants, bookkeepers and small to mid-sized businesses become more productive and efficient with our...