Sole trader to Ltd Co. - opening balances

[allthingsgifts]

Hi
As advised I went to see an accountant last week and am going to go from a sole trader to Ltd Co. I know how to setup the company and get a new bank account etc but was unsure of the opening balances in the company. I asked the accountant what to do with stock, creditors, fixed assets and reserves and he just said put as opening balances and put the other side to directors loan. After reading threads on here and info on google, I'm confused as I've read that creditors and reserves aren't carried forward to the ltd company.
He also said goodwill isn't relevant as i am a sole trader. I started the business in 2006. The accountant already advised me that sales to non Eu countries are exempt where as i've been treating them as zero rated so including them in my flat rate turnover which has been confirmed as correct in another thread so am really confused on whether what he is saying is right or not? My mum, dad and sister use him as there accountant so assumed he knows what he is doing.
Any help in the right direction would be much appreciated as I can do all the book keeping etc myself, I just need to get the starting point for the company right. I will obviously get an accountant to do the actual ltd co. accounts and ct return etc but like to get it all finished so he or she just has to check it.
Thanks
Lianne

[elainec100@cheapaccounting]

Ermm - I think he could be rather more helpful than that :rolleyes:

Personally my advice would be - go see someone who can talk you through this whole process and get you started :)

[allthingsgifts]

Hi Elaine
Thanks, I did have a meeting with him last week for 3 hrs! but it was left for me to decide what I wanted to do and we just went over the same thing over again and thinking about it I didn't really learn anything new that I didn't already know - this is the 2nd accountant i've seen. The first one I saw when I first started out just told me to go to the vat office and pick up some leaflets!

Anyone recommend any accountants in Oxford that know there stuff?

Thanks
Lianne

[MyAccountantOnline]

Hi Elaine
Thanks, I did have a meeting with him last week for 3 hrs! but it was left for me to decide what I wanted to do and we just went over the same thing over again and thinking about it I didn't really learn anything new that I didn't already know - this is the 2nd accountant i've seen. The first one I saw when I first started out just told me to go to the vat office and pick up some leaflets!

Anyone recommend any accountants in Oxford that know there stuff?

Thanks
Lianne


Hi Lianne

If you are using professional qualified and experienced accountants they really should know what they are doing and what you are querying really should be routine for such an accountant.

You most certainly shouldnt be paying an accountant and then feeling the need to ask the same question here.

It may be that the ones you have seen arent the best at explaining things to you - as accountants we have many years of learning the technical bits but nothing on how to explain it to others, and some accountants do struggle with that.

There are many of us accountants out there - if you want a local accountant why not ask your bank manager or other friends in business for a recommendation.

I dont think any of us here are in Oxford.

[David Griffiths]

The comment about goodwill needs to be challenged as well. If it can reasonably be shown that the sole trade has a value for goodwill, then that can be sold to the company. The odds are that there will be no personal tax on disposal, but the balance can then be withdrawn from the company in future.

[allthingsgifts]

would a website and google rankings be the basis to value goodwill as these aren't assets on the balance sheet but without these you won't have a business as you won't get any sales. If I was selling the business then I would include this in the value of the business but at what value i don't know, I guess what someone is prepared to pay.

I guess I don't need an accountant actually in Oxford as I can email over sage files, excel spreadsheets etc I just want someone who knows what they are doing and can give me the best advice and not charge £100 per hour!

Thanks
Lianne

[Strontium Dog]

The odds are that there will be no personal tax on disposal, but the balance can then be withdrawn from the company in future.[/quote]

Goodwill generated after April 02 should also be able to be relieved against CT as well