Accounts...

[emmabeauty]

this is my first year of running a business so its all new to me. just wanted a bit of advice on how other people sort stuff out at the end of the tax year?? do people have accountants or sort it out on their own?

its all a bit confusing sorting out tax!!

 

[Ruth Mills]

I use an accountant and they are worth their weight in gold! I run a limited company, which they helped set up for me, and they handle things like my payroll and sending all the required returns in to HMRC, like the company VAT return every quarter and whatnot.

Of course I need to keep records myself, and they have an online service where I can enter details of invoices, expenses, etc, and then post them the relevant paperwork (receipts etc) every quarter.

 

[Blue Rose]

I used to hate, hate, hate sorting out my book keeping before it all went off to the accountant so these days, I sort out my receipts, bank statements etc in order, then hand it all over to my book keeper who just happens to be my accountants wife.

I find my time is better spent on other things than stressing about my accounts!

 

[emmabeauty]

Thanks for the advice. I think i will go to an accountant, its just the cost thats a bit scary when i've not long started out lol!

 

[Ruth Mills]

Thanks for the advice. I think i will go to an accountant, its just the cost thats a bit scary when i've not long started out lol!

It's well worth the money - and far less scary than a tax investigation or an unexpected tax bill!

 

[emmabeauty]

It's well worth the money - and far less scary than a tax investigation or an unexpected tax bill!

thats very true!

 

[kezza*]

The 1st thing I did was sort out an accountant,,,, I spoke to him and he was great and yes the money bit is a bit scarey but it's worth it and you can claim it as an expense.

 

[Ruth Mills]

The 1st thing I did was sort out an accountant,,,, I spoke to him and he was great and yes the money bit is a bit scarey but it's worth it and you can claim it as an expense.

Yes, accountancy fees are most definitely a business expense.

 

[Blue Rose]

Yes, accountancy fees are most definitely a business expense.

A very worthwhile expense IMO :green:

 

[jes]

If your a small business it's actually quite simple to do your own tax return. Have a look at last years self assessment part of the tax return http://www.hmrc.gov.uk/forms/sa103s.pdf and see how much you understand (there is another part to fill in, about your pensions and savings etc, which everyone gets).

Basically, it's your takings (cash cheques and tips etc) minus expenses (including capital allowances). Just make sure you can prove the expenses are for your business and that they are accountable

 

[lublu]

The most expensive thing u can have in business is a cheap or no accountant.
A good one will save u way more than they cost


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[shell28]

If your a small business it's actually quite simple to do your own tax return. Have a look at last years self assessment part of the tax return http://www.hmrc.gov.uk/forms/sa103s.pdf and see how much you understand (there is another part to fill in, about your pensions and savings etc, which everyone gets).

Basically, it's your takings (cash cheques and tips etc) minus expenses (including capital allowances). Just make sure you can prove the expenses are for your business and that they are accountable

I agree i dont see the point in paying an accountant when im a very small business and can do it myself. I did my first tax return last year and was surprised how simple it was i just made sure i kept all my reciepts, what i earnt each month, what i paid out and then i transfered it all onto a spreadsheet each month and the info is all there come April.

But if you feel the need for an accountant then you go for it

 

[persianista]

My accountant saves me far more than he costs me.
All very well doing your own bookeeping, but what about depreciation of assets? What about capital allowances?
I have a decent working knowledge of bookeeping but I would have no idea where to start with full on accountancy.

 

[kimi1101]

I too have an accountant and I look at it like this...my accountant doesn't cut her own hair, so I'm not doing my own books! Like persianista said, what they cost you, they save you. Yes it all should be common sense but there are ins and outs and things your accountant knows which will save you money, or getting into a fankle with a tax bill!!!!

 

[angelina221]

I'd be lost without my accountant! She comes once a month and collects all my receipts and invoices and then does whatever it is she does
I don't want to be bothered with the hassle and i don't have the time anyway. Much better to pay someone who knows what they are doing and are going to save you money!

 

[Glamour Puss7]

Yes I agree having an accountant is very important, they are worth every penny! I couldn't go without my accountant he claims for things I didn't even know you could claim for? An accountant is worth having he "saves me money" so thats great. Wouldn't even try to attempt to do what he does on my own!

 

[Susie H]

I think it depends on what sort of a business you have.
If you are a mobile therepist or work from home then yes, doing your own accounts is very straight forward.
If you have a salon, work with someone else or have staff then you should look at having an accountant.
Finding a good one can be the problem. A good one will say, did you know you can claim for xxxxx a bad one will just take your figures, put them in the boxes and submit your form. Only difference from you doing it yourself is that you've just given them £300.
I've had the bad one. Then my husband started doing my accounts for me and I haven't paid tax since, he claimed my salon clothing, my ongoing training fee's, my fuel costs, and loads of other things that I'd never thought of.
Which ever way you go, my golden rules are, get a receipt for everything and write on the back what it's for and the date. Even a week later can have you wondering what the heck that was for.
Also if it's not claimable, you'll soon be told so, but the tax office won't tell you what you could have claimed for.
If like me, you take one look at the self cert form and wonder what language it's written in, then get a book keeper, word of mouth is as good a way as any to find a good one. Just make sure you put your return in on time, there is a fine for putting it in late and you are unlikely to get that appealed.

 

[abicrunch]

this is my first year of running a business so its all new to me. just wanted a bit of advice on how other people sort stuff out at the end of the tax year?? do people have accountants or sort it out on their own?

its all a bit confusing sorting out tax!!

Hi

My husband used to have a limited company and we used an accountant, but was so expensive. He is now self empoyed and I have just completed my first tax return for him on line.

Its not that bad really, you have to add up all of your receipts for materials, business premises and add up earniings with the bank account, etc but not that hard and the online tax form is ok, if you get stuck there is a help line that you can call.

Im not an accountant but most people I know that are self employed do it there self and save money.

Abi

 

[jes]

I couldn't go without my accountant he claims for things I didn't even know you could claim for? An accountant is worth having he "saves me money" so thats great.

It's worth mentioning that if an accountant is charging, let's say, £500 they are going to have to find another £2500 in expenses, than you can (at 20% tax), before you've recovered their costs