Just gone Self Employed - Advice please

Sofa_Sogood

Bermuda_John wrote:

Ok i may have been a bit over the top, but those are what an accountant, or at least me, would like to see in an ideal world.

If you dont know your current debtors or creditors or cash position how on earth can you run a business????

I would suggest a very simple excel spreadsheet similar to those which your accountant will actually use.

Send them the info and they will bash it into their package and calculate all the tax etc.

No need for something like Sage or whatever, just a simple analysis which will allow for the bank to be reconciled and an analysis of expenses and income, debtors and creditors.

But it all depends on what type of business someone's involved in?

If it's more profitable to do what you do best (not you in particular - but accountants or book keepers etc) it can be easier to employ someone that understands numbers, or has the time to learn.

Good advice all the same

calmgirl

(calmgirls husband) Just a quick note on accountants Dont go for the big flashy firm's. Your accounts will be given to a junor who will basically make sure it looks good. The fee they charge you wont even make a blip on their radar if you change ( trust me ) Find the small husband and wife team who work form a one room office who will need your fee to pay their mortgage they will have your best intrests in mind and you will talk to the person who actually does your accounts not like the big firms who pull your file an hour before your metting and browse over it. I'm afriad that as far as some proffesions go you dont always get what you pay for ( im sure that you do every job to your upmost quality because its you name, reputation and livley hood on the line) if you emplyed someone would you always trust them to do it to your standard???

sophistica

Sorry no time to fully understand your situation but receipts are absolutely essential and they protect YOU! If you get an investigation they will charge you the full whack of tax or even overestimate your earnings unless you can prove your expenses...some people even have to go banckrupt because they have no receipts.

Sofa_Sogood

calmgirl wrote:

(calmgirls husband) Just a quick note on accountants Dont go for the big flashy firm's. Your accounts will be given to a junor who will basically make sure it looks good. The fee they charge you wont even make a blip on their radar if you change ( trust me ) Find the small husband and wife team who work form a one room office who will need your fee to pay their mortgage they will have your best intrests in mind and you will talk to the person who actually does your accounts not like the big firms who pull your file an hour before your metting and browse over it. I'm afriad that as far as some proffesions go you dont always get what you pay for ( im sure that you do every job to your upmost quality because its you name, reputation and livley hood on the line) if you emplyed someone would you always trust them to do it to your standard???

That's totally right imho.

Having been overpriced by an company of prestigious accountants, who were taken to a small claims court by ourselves, a mere couple of numb nuts but ones who won over them, we downsized the price and company accountants, to someone who does his job just as well.

If his costs include employing juniors at, for instance, £5 a phone call, it's still half the price of whatever the first accountant was charging. I know that as fact, because the former employed a junior who told us how poorly he was paid.

But sophistica's right too. Receipts are important - but most people get away with at least a tenner for sundry items like public phone box calls, lunches etc. Bigger companies books that I've seen include their own wines and spirits being passed on as 'entertaining' clients.

There's always some things that seem to be overlooked .... but if there ever is an inspection ... they'll always look for anything under 'cash' it seems.

pmshrink

also remember that you only need 80% of your receipts - so don t worry too much if you lose or miss a few! everything an employer would provide - every paperclip or pencil or phone call is claimable.