Accountant and accounting software

jmb1

I've been a sole trader for 5 years or so using a chartered accountant for advice and preparing and filing my tax return. This requres me to download, copy and paste my business accounts each month from my online banking into an excel spreadsheet then allocating each incoming and outgoing amount into its appropriate column. I sell on amazon so also then need to pull up sales reports each month, again copying and pasting those figures in to a separate tab. All quite laborious and I'm sure I could use software such as quick books to automatically feed the data, certainly from my bank, possible via an amazon api too? Advantage apart from time saving and accuracy is that I"d also have live data to work out current years income, expenses running totals which would be particularly handy as I could then calculate what my tax saving is / should be at any time.

So any suggestions? My first (now retired) accountant set my spreadsheet up when my business started and it's never been recommended to update things since but I'm sure there's a far better way ie using counting software. 

I notice also that it can prepare tax returns for you. This makes me wonder do I need my accountant at all? My understanding and main use for using a chartered accountant (aside from the admin and getting figures correct) was being, so I was once told, far less likely to be audited by hmrc than I would if I was preparing my accounts myself... Perhaps I could use software, reducing the work my accountant needs to do and reduce their charges? (£750 yearly to prepare and file return and provide general ad hoc advice).

Advice appreciated on my best options.  

Sandtree

jmb1 said:

 (£750 yearly to prepare and file return and provide general ad hoc advice).

The key element is that last piece.

On a non advisory basis it'd be easy to say you are paying over the top but the hourly rate for advice is high and so you could be getting a bargain if you've got several hours of advice a year.

Self Assessment, as the name suggests, is supposed to be simple and able to be done yourself. An accountant however may more accurately assess what can and cannot be included etc. Just how simple it is also depends if you are with in the cash basis scheme, what capital allowances you have etc.

Before switching to any software, if you decide you are going to continue using an accountant, make sure they can accept its output otherwise you may spend just as long reformatting the outputs to be inline with the current spreadsheet. 

jmb1

Yes I feel like they spend a good amount of time advising and explaining and help reducing payments on account recently after an seiss shock so feel that's worth it.

I've asked them for thoughts re my using quickbooks and A2x (which allows connecting to amazon sales data) and even asked, if I were able to provide the tax return data in an easier to use form, ready to insert into a return their end, whether it actually also might save them time and thus they charge me less! I'm probably being optimistic on that last point but worth an ask! 

Sandtree

The other question is to ask what software they use... several have different flavours so a light version for the small business and a full fat for the accountant... some are cloud based so you dont have to send them anything.

Even if you decide you dont like the software they use many of the disruptors like Xero, Zoho etc can export in a format consumable by Sage or the other more traditional packages