Salon Owners

[BannerPenguin]

I see your point here Banner, and I agree with you, but for some people just the mere thought of trying to work out the fundamentals of accounts and the tasks associated with it is a minefield. :biggrin:

I agree. It's very daunting. Luckily my accountant taught me how to do most things and the stuff I don't want to/can't be bother to do I say you deal with it lol. He tells me how much it will be and I say yay or nay.

I hate accounting. Massively. But it was a necessary evil for me to get on with as gives me better business analysis. It always helps in the way you don't end up forking out lots of money on accountants. However I did struggle with it for about a year before I started using Kashflow accounting online system. Well worth the £25 a month. You can auto file all returns with HMRC at the click of a button when sync it with the HMRC gateway. It's great. VAT returns are less of a chore now.

 

[virtues2011]

I agree. It's very daunting. Luckily my accountant taught me how to do most things and the stuff I don't want to/can't be bother to do I say you deal with it lol. He tells me how much it will be and I say yay or nay.

I hate accounting. Massively. But it was a necessary evil for me to get on with as gives me better business analysis. It always helps in the way you don't end up forking out lots of money on accountants. However I did struggle with it for about a year before I started using Kashflow accounting online system. Well worth the £25 a month. You can auto file all returns with HMRC at the click of a button when sync it with the HMRC gateway. It's great. VAT returns are less of a chore now.

Ha ha I'm the same, I'm not even sure how I got involved with accounts to be honest...but have done management accounts for over 10 years now, and I still don't like/enjoy it ... to be honest I feel I'm finding it hard these days to find anything I really like/enjoy with accounts :biggrin:! but you are correct it is a necessary evil - I am a great believer in that you need to understand how to read accounts, even if you don't input, especially when you have a business. I am only familiar with SAGE but there are lots of systems that result in the same information.

 

[BannerPenguin]

Ha ha I'm the same, I'm not even sure how I got involved with accounts to be honest...but have done management accounts for over 10 years now, and I still don't like/enjoy it ... to be honest I feel I'm finding it hard these days to find anything I really like/enjoy with accounts :biggrin:! but you are correct it is a necessary evil - I am a great believer in that you need to understand how to read accounts, even if you don't input, especially when you have a business. I am only familiar with SAGE but there are lots of systems that result in the same information.

I think it's one of them things that no one likes doing. I started with Sage and it was the bane of my life! I like Kashflow for couple of reasons. It has an app for my phone, it's web based so can access it anywhere, it syncs with with HMRC & CardSave so clients can pay direct on the invoice and it marks as paid in the software keeping accounts nice and accurate cutting down on manual input.

The big thing for me was it's fairly simple. I like simple ha. After sage I wanted simple and you can edit or delete stuff with a click of a button (rightly or wrongly).

 

[Layrex9]

I used Sage for a bit then designed my own accounts layout on excel which I've tailored to my needs. I started off as a sole trader and went Ltd after about 3 years but I do my own accounts which means no accountant fees. I also use HMRC's own software to pay myself, therapists and receptionist as it is pretty straightforward so no payroll costs either. I think the SmillieShellac's accountant quote of £500 to go Ltd is very steep. I did the same as BannerPenguin and used an online company called Simple Formations. Cost about £30 to Incorporate my Limited Company.

Anyone looking at a Ltd Company v Sole Trader needs to do a cost/benefit analysis. Firstly estimate how much is left every year, after all expenses; this is ultimately your 'Profit' or 'Gross Income'. Here are some examples based on £20k and £60k but you can easily follow this format with your own figure: http://www.mah.uk.com/MAH_Chartered_Accountants_comparison_sole trader_vs_limited company.pdf

You can then weigh the tax saving of this against the additional costs of going down the Limited Company route. i.e. the extra your accountant will charge if you go Limited. Personally, as I do my own accounts it costs me £13 more to be Limited as this is the Companies House admin charge of submitting the Annual Return each year.