Accountancy

[ukminch]

Something that I've been thinking about for a while. I don't use my accountant properly. I fill in my own VAT returns and tax forms. I use my accountant for advice but I know I miss a lot of tricks of the trade.

 

I ought to just keep records of mileage (I run vehicles as personal vehicles) and what I've done where along with receipts and let him take it from there. Next time I see him I'm going to ask him about whether he'd do this and how much he'd charge for such a service.

 

How do other people do stuff and how much (if you don't mind me asking) do you pay?

 

I reckon with the hourly rate he charges me it cost me about £400 quid for stuff last year. I reckon if he got everything every month/3 months/whatever along with a spreadsheet it may not work out much more than this and would be a lot more efficient??

 

R

[Gareth Dalzell]

Get on to Sage Instant Accounts or something similar - don't worry about a spread sheet. Your accountants will be able to work on your accounts easier in this format - all they need is a disc copy. They can do so much more with it in this format if you learn how to input the info properly - infact you'll get so much more from the info in this type of format. It does take a bit of patience to set up though. I've been running Sage now for around 15 years and it allows you to analysis you business in much more detail than I was able to with a paper entry system.

[ukminch]

I don't think that would be right for me. All my accounts get done last minute and in a rush this is why I want to put a system in place to make this more efficient. I simply wouldn't use the package effectively. What I do is to make a note in the diary of money received, money paid out (wages, fuel) and mileage that could easily be put into a spreadsheet once every so often by me.

 

The purpose of this is that it could then be easily analysed to see if I'm better off running personal vehicles, means I can't claim VAT on fuel, cost of repairs but get 40p/mile for them. Especially going to be relevant if I get a newer vehicle rather than an older one that doesn't cost a lot. Same with hiring equipment vs buying etc etc.

 

Then all the other stuff would be done by the accountant - does that make sense??

 

R

[samarb]

Dont be tight and use your accountant for what he's worth! I wouldn't expect him to care for his own trees like i would and if he's good he'll pay for himself.

[arbclimber]

If you are using an accountant but do all your tax and VAT returns yourself, what exactly does he do?

[ukminch]

If you are using an accountant but do all your tax and VAT returns yourself, what exactly does he do?

 

Tells me what to put on them:001_tt2:

 

Thats the point that I was making I don't use him effectively at all, mainly because I'm always to late to get stuff to him before I'd get fined. I'm quite happy paying someone to do a job their good at. Just wondering what I should be paying as it's not the kind of thing you get 3 quotes for.......

 

R

[Andy Collins]

Uk minch, I used to be just the same as you, Mr Disorganised, and it was only when our friends in HMRC called me in for a little chat that I woke up and smelled the coffee. Nw I have an accountant, everything is filed religiously to make her life easier, and that means if I need to reference something, I can find it quickly, so in the long run its actually quicker and easier for me not to leave it until the last minute. And I dont end up paying those nasty little fines any more:001_rolleyes:

[ukminch]

Uk minch, I used to be just the same as you, Mr Disorganised, and it was only when our friends in HMRC called me in for a little chat that I woke up and smelled the coffee. Nw I have an accountant, everything is filed religiously to make her life easier, and that means if I need to reference something, I can find it quickly, so in the long run its actually quicker and easier for me not to leave it until the last minute. And I dont end up paying those nasty little fines any more:001_rolleyes:

 

I had that little chat a year or so ago it was a nightmare, receipts missing left right and centre. Was quite uncomfortable. I can honestly say now all receipts are kept in a file, not organised but they are there. Biggest problem was all the fuel receipts for £5-10 quid, all paid for by card so I could prove I'd had it but not got a VAT receipt. The fuel card comes into it's own for that. An invoice once a month thats itemised. Brilliant!!

 

Still thanks to my accountant I did come out of it better off:thumbup: I have been better since then but I've been looking at different ways of doing things and I've flagged this as a major thing.

 

I'm going to have a chat with him about doing everything later on in the week. Ideal scenario would be I'd give him an envelope with receipts, one with invoices then a list of mileages and wages and away I go.

 

R

[Stephen Blair]

this problem is very simple to fix because it is YOU that is the problem, not staff, not customers but you. I use my business switch card for nearly everything, i carry a laptop case with me to work, which has my diary, pricing guide sheets, calculator, envelopes and stamps, i put all my recipts and cheques and everything else work related thats a piece of paper in it, i then on friday sort it all out, cheques for the bank, receipts for my bookkeeper etc. If i get cash this gets written into my cash book, and if i use the cash for anything then i write it down before i leave the fuel station. Might take a few minutes but saves a lot of hassle. then when my bank statements come in they are basically my books, if there is anything slightly diferent that month then i write beside it what it is or i just get the teller to reference it in the bank.

 

My accountant charges me £600 plus vat a year which is an expense so that gets written off, i can call him anytime and if we need a meeting its done by email. simples.

I know it advance what my tax is going to be aswell, so no surprises.

[ukminch]

this problem is very simple to fix because it is YOU that is the problem, not staff, not customers but you. I use my business switch card for nearly everything, i carry a laptop case with me to work, which has my diary, pricing guide sheets, calculator, envelopes and stamps, i put all my recipts and cheques and everything else work related thats a piece of paper in it, i then on friday sort it all out, cheques for the bank, receipts for my bookkeeper etc. If i get cash this gets written into my cash book, and if i use the cash for anything then i write it down before i leave the fuel station. Might take a few minutes but saves a lot of hassle. then when my bank statements come in they are basically my books, if there is anything slightly diferent that month then i write beside it what it is or i just get the teller to reference it in the bank.

 

My accountant charges me £600 plus vat a year which is an expense so that gets written off, i can call him anytime and if we need a meeting its done by email. simples.

I know it advance what my tax is going to be aswell, so no surprises.

 

Bang on, and I'm going to fix it. £600 or £50 a month sounds reasonable for the invaluable advice you can get. I just need to make sure that a system is put in place and stick to it.

 

I also use my debit/credit card or cheque book for everything. This was part of the problem when the tax man turned up. I could prove what I'd brought from the statements - this is how i'd done the returns been through the internet banking and added it all up. What I did struggle with was the physical receipts. I've sorted this now, but I need to take it further which is what I'm doing.

 

R