Can new companies use cheap students for their accounts?

theTinker

Hope this is the most apt forum to post this in.

My little brother is an accounting student in 2nd year now. He seems to think things like profit and loss accounts are ridculously easy and i got the impression that most of his good class mates do too.
I thought it might be a good idea for all these little new companies posting here that are setting up, to get an accountancy student to do most of thier accounts. They would cost practically nothing comparing to a proper accountant, are formally educated, and im sure they would love the addition to thier resume. 2nd or 3rd years i would assume would be adequate for most of the work.
Alot of the companies seem to want to avoid solicitors/accountants etc for cost so it was just an idea.

Is this legal and such? a bad idea?

PS: My brother is the only person I know in this area so im not well versed in it. He could be just a rare case like.

boomer_ie

Its not something Ive thought about but so long as the standards of accounting are followed correctly then why shouldnt you use a student, just be very careful to double check their work. The only time you could run into a problem is if you require audited accounts which would be required to be done by a qualified auditor.

NB: This is my own personal opinion and should not be construed as legal advise etc etc etc

Baby4

This post has been deleted.

EKRIUQ

Any place where it possible to send a sage disk to and reconcile the bank account and do the end of year accounts??

ircoha

AFAIK, all accountancy students need to be "mentored" or supervised by a qualified accountant.

The reason is that their practical experience is as important as the exams.

For example, I dont think you can become an accountant by working say as a mechanic or landscape gardener all day and just pass the exams.

You can have a book-keeper by all means but I dont think you can have a trainee accountant unless u have an accountant as well.

MartMax

imho, it makes not much diff if your bookkeeper is well qualified accountant or young college students as long as day-to-day accounting records are in proper keep and order. except qualified and well experienced persons are more expensive to hire at your premise. you can then have a practising accountant to compile those bookkeping records into financial statements every year. after all they should know better abt all those accounting treatments and companies act compliance.

i don't see any reason that reporting accountants would charge a lot to sign your financial statements if your books and records are retained in good order. You could also bargain with the reporting accountant to include income tax, personal, etc in their service. and maybe ask them to mentor your student accountant, few bits and pieces of advice there and here. especially when it comes to Revenue returns.

mart

ircoha

mart_max wrote:

i don't see any reason that reporting accountants would charge a lot to sign your financial statements if your books and records are retained in good order.
mart

Have u any idea what Professional Indemnity insurance for accountants costs these days?

Rudolph Claus

ircoha wrote:

Have u any idea what Professional Indemnity insurance for accountants costs these days?

Can you give us an idea?

ircoha

Nuttzy wrote:

Can you give us an idea?

€350,000 pa is a number I have written a cheque for re PI

Sonnenblumen

ircoha wrote:

€350,000 pa is a number I have written a cheque for re PI

Thats an extraordinary high premium , suggests the level of risk is high and/or the consequences are severe. AFAIK Surgeons pay a similar level of PI but they're dealing with Life & Death issues, whereas Accountants are well it's more number crunching/sanitisation.