Accounts for small business set-up??

inmypocketnottheirs

jackdoor wrote:

Complete tosh!

On what basis do you make that remark? D you know what my tax bill is, and what saving my accountant makes me. Clearly you do not.

MalcolmCooper

Of course there is no legal requirement to have an accountant but it's a false economy to operate a business without one. They'll save you more than they ever cost you. As has been said, not a big fancy one, just a local certified accountant one man band. Ask around for recommendations.

NO, I am not an accountant and I am not talking cobblers. Try backing up your arguments with facts rather than expletives please.

oldfella

accountant issue - as you are self-employed its not essential. Depends how much you know about tax and accounts in general. Maybe use one for a year, learn and DIY the year after.

Mike

MalcolmCooper

Declare what? I am not an accountant nor do I have any even distant vested interest in promoting accounts. I simply don't happen to share your opinion which seems to upset you.

I'm no dummy. I run a pretty large business and I wouldn't be without an accountant. That's my opinion, that's all. You're entitled to yours too.

PosterBoy77

MalcolmCooper wrote:

Of course there is no legal requirement to have an accountant but it's a false economy to operate a business without one. They'll save you more than they ever cost you. As has been said, not a big fancy one, just a local certified accountant one man band. Ask around for recommendations.

NO, I am not an accountant and I am not talking cobblers. Try backing up your arguments with facts rather than expletives please.

I have been running businesses successfully for 10 years. I can confirm that you are talking cobblers as you do not need an accountant. It is true that an accountant is worth it if you are making sufficient money so that his/her costs are insignificant and if you are too busy to bother with the paperwork yourself and have not researched the tax rules. However it is not a categorical answer like you suggest. If the OP is only just starting in business and only making a small amount of money every year, then I suggest that it is absolutely not worth it. The accountants fees will cost more than he/she could ever save you.

Also the accountant is not saving you money, he is just doing his job and if you bought yourself a couple of tax books you would be able to familirsie yourself with the most tax efficient ways of accounting for things within your business. I have often advised my accountant over what I want him/her to do, as not many will be as aggressive as they can be unless you tell them that you know they can be!

PosterBoy77

MalcolmCooper wrote:

Declare what? I am not an accountant nor do I have any even distant vested interest in promoting accounts. I simply don't happen to share your opinion which seems to upset you.

I'm no dummy. I run a pretty large business and I wouldn't be without an accountant. That's my opinion, that's all. You're entitled to yours too.

Exactly - you run a large business then - it does not mean that every person in business has the same needs as you do. For you to say that every person in business should have an accountant is cobblers.

MalcolmCooper

I respect your opinions, I just don't share them.

I run a limited company so I have no choice anyway, my year end accounts need to be prepared professionally.

PosterBoy77

MalcolmCooper wrote:

Sounds like you just need a separate current account. It would be a good idea to shop around for a new business bank account to take advantage of free banking deals and help and advice offered by the banks. I never thought I'd recommend a bank because I don't generally like them but my experience with business banking at HSBC is very good.

Look at your local chamber of commerce, the Federation of Small Businesses and other organisations who often have special rates for members available with certain banks.

Do keep your business banking separate and you must get an accountant. You don't need a big firm of accounts, just a local independent certified account will be fine. He or she will show you what records to keep and keep the tax man off your bank. An accountant isn't just a good idea, it's essential.

Best wishes,

Malcolm

The latest business account from Abbey is much better than the competition from most high street banks, as it offers decent interest on spare money and has no fees for general usage and transactions. It can also be operated via the Internet. I think A & L offer a similar account now too though. It seems to me that even if you have a decent accountant, he has not advised you on how you can save money on bank fees and optimise your in-credit interest! If you are using HSBC you are almost certainly not getting a leading deal.

Before Abbey started offering free business banking I used Cater Allen private bank who offered free business banking and paid interest on money in the account.

If you begin to have lots of spare cash in your business you can run an abbey business reserve account alongside the business account and this pays even better levels of interest. One thing it also allows that they don't tell you, is direct debits, so you can keep money earning better interest in the reserve account right up until bills are paid via DD.

If you really become successful and have lots of cash on deposit you can also setup fixed term deposits by fax with Abbey and get close to money market rates of interest.

MalcolmCooper

http://www.businesslink.gov.uk/bdotg/action/detail?r.l3=1073963622&r.l2=1073858948&r.l1=1073858790&r.s=sc&type=RESOURCES&itemId=1073791711

PosterBoy77

MalcolmCooper wrote:

I respect your opinions, I just don't share them.

I run a limited company so I have no choice anyway, my year end accounts need to be prepared professionally.

You do have a choice and could do them yourself if you wanted to. However I would agree that for larger limited company your time is better spent running your business and letting an accountant deal with it. Also depending upon your business, other companies you deal with may at times want to see professionally prepared accounts, so in your position it is the best thing. However for someone starting out with a small scale business, perhaps just grown out of a hobby, the requirements are often totally different.

It was you making a blanket statement about an accountant being essential for all businesses which has got some backs up, as it can be a total waste of money - not good advice on a money saving forum!