Self-accountancy

[andrew_xe]

Hi guys,

I've got a pretty tricky dilema, I'm the director of my limited company, I don't employ anyone, and I'm about to start trading.

Now, heres the issue. I will be doing roughly 4 - 6 transactions a month, with an annual turnover that's below the VAT threshold.

I'm stuck between paying someone between £50 and £95 (avg. fixed-fee found on the internet) to do all of my accounting stuff a month (which means a £600 - £1140 annual bill), or simply paying £115 for Sage Instant Accounts and doing everything myself.

I've got experience doing the book-keeping side of things, and I've seen alot of books in WHSmiths and Waterstones that show you how to do accounting.

Where I'm stuck is, even though I'll only be doing a small amount of transactions, is it worth me paying an accountant and seeing a mass-increase in annual accountancy fees?

Is it simple enough to do everything yourself if you're not VAT registered? I'm well aware that that means I "won't have time to sell", but I've already got two very successful companies that have been trading for a combined 30 years that will be selling my product pro-actively, eliminating any need for me to go out and sell.

I look forward to reading your comments.

Thank you,
Andrew.

[kjmcculloch]

Only you can decide what having someone do it for you is worth.

It doesn't sound like much work for the quote you have. But what is it worth to know it's done right? By employing an accountant or bookkeeper you should know they have the skill base to undertake the work, and are insured if things go wrong.

I'd shop around, I think you could get a better price.

Kris

[bbbbb]

By all means buy Sage Instant Accounts and do your own bookkeeping .. but make sure that you do it properly.

Then get a cheaper quote from someone just to prepare your statutory accounts, your abbreviated accounts and your corporation tax return from your Sage data. Sage Instant will not produce the year end documentation that you are legally required to prodice and frankly IMHO it's not worth spending the time trying to do it yourself

[David Griffiths]

It's not at all difficult to do the basic bookkeeping and you could look at Solar Accounts which is cheaper than Sage and almost certainly easier to use. That of course is subjective!

Where you will probably run into problems is in dealing with the accounts required for Companies House, and with the corporation tax return CT600. To be honest, if you want to DIY (and there's no reason why you shouldn't) then a limited company is probably not the best choice. Self assessment forms as a sole trader are a whole lot easier.

Back to the company situation - if you can provide properly balanced records in Sage or Solar you should be able to find somebody to do the work for less than £600. Better again, have a look at Elaine's site (http://www.cheapaccounting.co.uk/indexservicesltdsup.php) which will cost you £30 + VAT per month if you use her system to keep the records and saves you the money for Sage

[andrew_xe]

I've used Solar accounts before and I did find it very easy to use. Unfortunately, everyone I know who could provide me with free support and help use Sage.

I was going to go down the Sole Trader route, but as I'll be doing internet services, if something went wrong, it would most likely be a costly issue to resolve, and I'd rather have my bank account protected from that and minimize any liability that I'd be personally responsible for.

Elaine's website looks quite good for the price, I'll have to contact her and see if she'll work with Sage (if I decided to use that as my book-keeping software).

Thank you for your help guys. :)

[David Griffiths]

I've used Solar accounts before and I did find it very easy to use. Unfortunately, everyone I know who could provide me with free support and help use Sage.

I was going to go down the Sole Trader route, but as I'll be doing internet services, if something went wrong, it would most likely be a costly issue to resolve, and I'd rather have my bank account protected from that and minimize any liability that I'd be personally responsible for.

Elaine's website looks quite good for the price, I'll have to contact her and see if she'll work with Sage (if I decided to use that as my book-keeping software).

Thank you for your help guys. :)

Elaine has her own system, and as I understand things you have to use that to get the prices quoted.

[thebusiness]

I've already got two very successful companies that have been trading for a combined 30 years

.... and you're not sure whether to pay out £50 per month to have your accounts done properly!! I think your definition of a 'very successful company' must be slightly different to mine!!!

[andrew_xe]

.... and you're not sure whether to pay out £50 per month to have your accounts done properly!! I think your definition of a 'very successful company' must be slightly different to mine!!!

What I meant (perhaps I worded it wrongly) was that I have contacts who have a combined 30 years between them of trading and both of them have agreed to pro-actively sell my products which meant I would not have to go out and sell my own product, thus freeing up time for me to do my own accounts.

This is my first company, I'm doing it on my own, and I have very little experience with accounts, which is why I posted this topic, I wanted to see how easily possible it was to do your own accounts - the best answer is usually "leave it to the people who are trained and insured to do so" which is what I expected.

I've had some quotes from people regarding year end accounts, which I'm happy with.

P.S I'm sure that when I said "I have two companies ... that will be willing to sell my products" it would of implied I did not own them and that they friends and/or relatives.

[elainec100@cheapaccounting]

Elaine's website looks quite good for the price, I'll have to contact her and see if she'll work with Sage (if I decided to use that as my book-keeping software).

Thank you for your help guys. :)

Yes we do but with respect for what you are doing Sage may be a sledge hammer to crack a nut but always happy to help

[elainec100@cheapaccounting]

Elaine has her own system, and as I understand things you have to use that to get the prices quoted.

no we are flexible on that David :):)

[elainec100@cheapaccounting]

Check out this guide as well:

Limited Company – Do you know what you’re getting into?


http://www.cheapaccounting.co.uk/mailsltdcoguide.pdf

[David Griffiths]

no we are flexible on that David :):)

I realised that you'd deal with Sage users, but wondered if you would do it at that price. :)

[elainec100@cheapaccounting]

I realised that you'd deal with Sage users, but wondered if you would do it at that price. :)


If the client is doing the bookkeeping!

A lot of clients with turnover under £65k would not use Sage. Most would find that it just took too long to do the bookkeeping on it - time better spent running their business. Plus the costs is prohibitive in such an instance. ;)

[andrew_xe]

Hi Elaine,

Thank you for that, I've already read all of those things before I decided to go ahead of it, I've spent the last 3 weeks debating whether to go the sole trader route or use the limited company I formed some time ago and never used for anything.

Anyway, this isn't a topic about which route to pick, I'm pretty firm in the one I've chosen and if it turns out to be a mistake, well, I'll end up paying for it with failure.

I've decided that I'll be getting an accountant to do the majority of paperwork while I do all of the relatively easy stuff (book-keeping basically).

[elainec100@cheapaccounting]

Great - all sounds good then.