Acorah Software Products - Accounts Production 15.0.600 false true true 31 January 2023 1 February 2022 true 1 February 2023 31 January 2024 31 January 2024 10581248 Patrick Morrello Kate Adderley iso4217:GBP iso4217:EUR iso4217:USD xbrli:shares xbrli:pure xbrli:pure 10581248 2023-01-31 10581248 2024-01-31 10581248 2023-02-01 2024-01-31 10581248 frs-core:CurrentFinancialInstruments 2024-01-31 10581248 frs-core:Non-currentFinancialInstruments 2024-01-31 10581248 frs-core:ComputerEquipment 2024-01-31 10581248 frs-core:ComputerEquipment 2023-02-01 2024-01-31 10581248 frs-core:ComputerEquipment 2023-01-31 10581248 frs-core:RetainedEarningsAccumulatedLosses 2024-01-31 10581248 frs-bus:CompanyLimitedByGuarantee 2023-02-01 2024-01-31 10581248 frs-bus:FullAccounts 2023-02-01 2024-01-31 10581248 frs-bus:SmallEntities 2023-02-01 2024-01-31 10581248 frs-bus:AuditExempt-NoAccountantsReport 2023-02-01 2024-01-31 10581248 frs-bus:SmallCompaniesRegimeForAccounts 2023-02-01 2024-01-31 10581248 frs-bus:SmallCompaniesRegimeForDirectorsReport 2023-02-01 2024-01-31 10581248 frs-bus:Director1 2023-02-01 2024-01-31 10581248 frs-bus:Director1 2024-01-31 10581248 frs-bus:Director2 2023-02-01 2024-01-31 10581248 frs-bus:Director3 2023-02-01 2024-01-31 10581248 frs-bus:Director3 2024-01-31 10581248 frs-core:CurrentFinancialInstruments 1 2024-01-31 10581248 frs-core:CurrentFinancialInstruments 2 2024-01-31 10581248 frs-countries:EnglandWales 2023-02-01 2024-01-31 10581248 2022-01-31 10581248 2023-01-31 10581248 2022-02-01 2023-01-31 10581248 frs-core:CurrentFinancialInstruments 2023-01-31 10581248 frs-core:Non-currentFinancialInstruments 2023-01-31 10581248 frs-core:RetainedEarningsAccumulatedLosses 2023-01-31 10581248 frs-core:CurrentFinancialInstruments 1 2023-01-31 10581248 frs-core:CurrentFinancialInstruments 2 2023-01-31
Registered number: 10581248
Third Sector Accountancy Limited
Directors' Report and
Financial Statements
For The Year Ended 31 January 2024
Contents
Page
Company Information 1
Directors' Report 2—5
Income and Expenditure Account 6
Balance Sheet 7—8
Notes to the Financial Statements 9—12
Page 1
Company Information
Directors Patrick Morrello
Kate Adderley
Company Number 10581248
Registered Office Holyoake House
Hanover Street
Manchester
M60 0AS
Accountants Third Sector Accountancy Limited
Chartered Accountants and Registered Auditors
Holyoake House
Hanover Street
Manchester
M60 0AS
Page 1
Page 2
Directors' Report
The directors present their report and the financial statements for the year ended 31 January 2024.
Principal Activity
We are a firm of Chartered Accountants and Registered Auditors offering accountancy services primarily to those within the not-for-profit and co-operative sector. We work with co-operatives, community interest companies, community benefit societies, and charities throughout the UK. 
Vision
We are a value-driven organisation, and our primary purpose is to support and encourage positive social change by providing quality financial services. We started in 2017 as a group of friends determined to help make the world a better place by using our expertise to provide top quality financial services to social change organisations. 
You can read more about our vision and how we aim to achieve it here:
https://www.thirdsectoraccountancy.coop/our-vision. 
Legal Structure
Third Sector Accountancy Limited is a private company, limited by guarantee, incorporated in England & Wales, registered number 10581248. The registered office is Holyoake House, Hanover Street, Manchester, M60 0AS.
Governance: Worker's Co-operative
The Company is organised as a workers co-operative and, in accordance with the co-operative principle of democratic member control, each member worker has one vote at general meetings. Only employees may be admitted to membership of the co-operative, subject to various qualifying conditions. The Company notes that, in substance, all employees attend monthly meetings and have an equal say in the running of the co-operative.
This means that all staff are highly motivated, interested in the sector and in their clients, and take ownership of their work. We believe that being a co-operative leads to a better outcome for us and for our clients. 
We use the system of sociocracy to best function as an effective and efficient co-operative.
Sociocracy offers a decision making and governance model in line with the ethos of the cooperative identity, which honours and centres the human individual within the organisation. As values-based and principle-driven socio-economic organisations, co-ops benefit from an operating system that has a coherence and a synergy with the Cooperative Identity. Sociocracy is an approach to decision making and organisational structuring that is quick and easy for a co-op or start-up group to start using. 
Sociocracy combines consent decision-making, a decentralised system of authority and intentional processes to improve our decisions and processes over time into a governance system that supports effective and efficient process while increasing connection, listening and co-creation among members.
...CONTINUED
Page 2
Page 3
Principal Activity - continued
Reserves Policy
Profits of the Company can be applied in the following ways:
  • To create a general reserve for the continuation and development of the co-operative;
  • In accordance with the co-operative principle of member economic participation, to a bonus for all staff, either equally or in accordance with some other equitable formula. In practice, as long as reserves permit, 50% of profit is distributed as a bonus in proportion to hours worked; 
  • In accordance with the co-operative principle of concern for community, to make payment for social, co-operative and community purposes.
On winding up of the Company, any balance of assets remaining may not be distributed among the co-operative’s members but shall be transferred to some other common ownership co-operative(s) to Co-operatives UK (or any body that succeeds to its function). If such residual assets cannot be distributed in this manner they shall be transferred to some other organisation(s) whose purpose is to promote and support the co-operative movement and common ownership enterprises.
Tax Policy
The company meets the standards and requirements of the Fair Tax Foundation UK Small Business Standard for the Fair Tax Mark certification.
The Company is committed to paying all the taxes that we owe in accordance with the spirit of all tax laws that apply to our operations. We believe that paying our taxes in this way is the clearest indication we can give of being responsible participants in society. We will fulfil our commitment to paying the appropriate taxes that we owe by seeking to pay the right amount of tax, in the right place, and at the right time. We aim to do this by ensuring that we report our tax affairs in ways that reflect the economic reality of the transactions that we undertake during the course of our trade. 
We will not seek to use those options made available in tax law, or the allowances and reliefs that it provides, in ways that are contrary to the spirit of the law. Nor will we undertake specific transactions with the sole or main aim of securing tax advantages that would otherwise not be available to us based on the reality of the trade that we undertake. The Company will never undertake transactions that would require notification to HM Revenue & Customs under the Disclosure of Tax Avoidance Schemes Regulations or participate in any arrangement to which it might be reasonably anticipated that theUK’s General Anti-Abuse Rule might apply. 
We believe tax havens undermine the UK’s tax system. As a result, whilst we may trade with customers and suppliers genuinely located in places considered to be tax havens, we will not make use of those places to secure a tax advantage, and nor will we take advantage of the secrecy that many such jurisdictions provide for transactions recorded within them. Our accounts will be prepared in compliance with this policy and will seek to provide all the information that users, including HM Revenue & Customs, might need to properly appraise our tax position.
We provide tax advice to our clients in order to help them to make use of reliefs and exemptions as set out in law, and to make the best possible decisions so as to minimise tax liabilities. We will not advise clients to do anything that gains a tax advantage that is not within the spirit of the law, or to disguise the economic reality of a transaction, or to use a tax haven. Furthermore we will not act for clients that seek unfair tax advantages in this way.
Page 3
Page 4
Directors
The directors who held office during the year and up to the date of the approval and signing of the accounts were as follows:
Patrick Morrello
Scott Lockwood Resigned 11/12/2023
Kate Adderley Appointed 18/09/2023
 
Statement of Directors' Responsibilities
The directors are responsible for preparing the Directors' Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the surplus or deficit of the company for that period. In preparing the financial statements the directors are required to: 
  • select suitable accounting policies and then apply them consistently;
  • make judgments and accounting estimates that are reasonable and prudent;
  • prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Page 4
Page 5
The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Small Company Rules
This report has been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
On behalf of the board
Kate Adderley
Director
05/08/2024
Page 5
Page 6
Income and Expenditure Account
2024 2023
Notes £ £
TURNOVER 818,339 646,992
Cost of sales (685,921 ) (574,391 )
GROSS SURPLUS 132,418 72,601
Administrative expenses (104,620 ) (89,829 )
Other operating income 5,000 7,667
OPERATING SURPLUS/(DEFICIT) 3 32,798 (9,561 )
Interest payable and similar charges (3,143 ) (302 )
SURPLUS/(DEFICIT) BEFORE TAXATION 29,655 (9,863 )
Tax on Surplus/(deficit) 6 (4,372 ) -
SURPLUS/(DEFICIT) AFTER TAXATION BEING SURPLUS/(DEFICIT) FOR THE FINANCIAL YEAR 25,283 (9,863 )
The notes on pages 9 to 12 form part of these financial statements.
Page 6
Page 7
Balance Sheet
2024 2023
Notes £ £ £ £
FIXED ASSETS
Tangible Assets 7 5,232 6,380
5,232 6,380
CURRENT ASSETS
Debtors 8 145,743 109,100
Cash at bank and in hand 40,774 39,123
186,517 148,223
Creditors: Amounts Falling Due Within One Year 9 (111,647 ) (128,148 )
NET CURRENT ASSETS (LIABILITIES) 74,870 20,075
TOTAL ASSETS LESS CURRENT LIABILITIES 80,102 26,455
Creditors: Amounts Falling Due After More Than One Year 10 (28,364 ) -
NET ASSETS 51,738 26,455
Income and Expenditure Account 51,738 26,455
MEMBERS' FUNDS 51,738 26,455
Page 7
Page 8
For the year ending 31 January 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.
The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.
These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime.
On behalf of the board
Kate Adderley
Director
05/08/2024
The notes on pages 9 to 12 form part of these financial statements.
Page 8
Page 9
Notes to the Financial Statements
1. General Information
Third Sector Accountancy Limited is a private company, limited by guarantee, incorporated in England & Wales, registered number 10581248 . The registered office is Holyoake House, Hanover Street, Manchester, M60 0AS.
2. Accounting Policies
2.1. Basis of Preparation of Financial Statements
The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 section 1A Small Entities "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.
2.2. Going Concern Disclosure
The directors have not identified any material uncertainties related to events or conditions that may cast significant doubt about the company's ability to continue as a going concern.
2.3. Turnover
Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of software and from the rendering of accountancy, bookkeeping and tax services.
Rendering of services
Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. 
2.4. Tangible Fixed Assets and Depreciation
Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:
Computer Equipment 33% straight line
2.5. Taxation
Income tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable surplus for the year. Taxable surplus differs from surplus as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other year and items that are never taxable or deductible. The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.
As at 31 January 2024, the Company had no deferred tax assets or liabilities on its balance sheet (2023: £Nil); and no movements in deferred tax have been expensed or credited to the income statement during the five years 2019 to 2024.
Page 9
Page 10
3. Operating Surplus/(deficit)
The operating surplus/(deficit) is stated after charging:
2024 2023
£ £
Bad debts 45 -
Depreciation of tangible fixed assets 4,038 3,902
4. Staff Costs
Staff costs, including directors' remuneration, were as follows:
2024 2023
£ £
Wages and salaries 553,462 467,592
Social security costs 43,536 38,019
Other pension costs 60,343 44,710
657,341 550,321
5. Average Number of Employees
Average number of employees, including directors, during the year was: 20 (2023: 19)
20 19
6. Tax on Surplus
Tax Rate 2024 2023
2024 2023 £ £
Current tax
UK Corporation Tax 19.0% 19.0% 4,372 -
Total tax charge for the period 4,372 -
2024 2023
£ £
Profit before tax 29,655 (9,863)
Breakdown of tax charge is:
Tax on profit at 19% (UK standard rate) 5,634 (2,383 )
Goodwill/depreciation not allowed for tax 767 741
Expenses not deductible for tax purposes 380 380
...CONTINUED
Page 10
Page 11
Tax losses utilised (1,725 ) -
Capital allowances (684 ) (973 )
Tax losses unutilised carried forward - 2,235
Total tax charge for the period 4,372 -
Expenses not deductible for tax purposes:
Some business expenses, although entirely appropriate for inclusion in the reporting entity’s accounts, are not allowed as a deduction against taxable income when calculating the tax liability. Examples of such expenses are: client entertaining; non qualifying charitable donations; and fines and penalties.
Capital allowances:
The accounting treatment of capital assets is usually different than the tax treatment allowable. This is because, in the accounts, an asset is depreciated over its useful economic life. Whereas capital allowances are set rules in tax law applied to the type of asset. The differences, however, between the depreciation rate in the accounts and capital allowances claimed in the corporation tax return – are only timing differences – as eventually, the accumulated depreciation and the capital allowances claimed will equal one another.
7. Tangible Assets
Computer Equipment
£
Cost
As at 1 February 2023 17,156
Additions 2,890
As at 31 January 2024 20,046
Depreciation
As at 1 February 2023 10,776
Provided during the period 4,038
As at 31 January 2024 14,814
Net Book Value
As at 31 January 2024 5,232
As at 1 February 2023 6,380
Page 11
Page 12
8. Debtors
2024 2023
£ £
Due within one year
Trade debtors 89,794 72,683
Prepayments and accrued income 55,749 36,217
145,543 108,900
Due after more than one year
Other debtors 200 200
145,743 109,100
Included within prepayments and accrued income is work in progress of £50,684 (2023: £29,624). The work in progress balance represents services in progress as at year end which have not yet been billed. The balance is calculated as 60% (2023: 70%) of the value of unbilled time as at the year end, based on staff charge out rates. 
9. Creditors: Amounts Falling Due Within One Year
2024 2023
£ £
Trade creditors 4,365 6,611
Bank loans and overdrafts 7,151 -
Corporation tax 4,372 -
Other taxes and social security 12,254 10,185
VAT 47,610 43,166
Net wages - 1,053
Short term directors loans 3,385 25,448
Other loans 3,277 5,800
Pension contributions 4,826 4,031
Accruals, deferred income and other creditors 24,407 31,854
111,647 128,148
10. Creditors: Amounts Falling Due After More Than One Year
2024 2023
£ £
Bank loans 28,364 -
11. Company limited by guarantee
The company is limited by guarantee and has no share capital.
Every member of the company undertakes to contribute to the assets of the company, in the event of a winding up, such an amount as may be required not exceeding £1.
Page 12