Accountancy for dummies

[Travelling Sam]

Well, I presume there is an accountancy version of this series, but I don't like the other editions, so won't be buying it!

Running a start-up travel company we aim to keep costs to a minimum. However we will have to find an accountant to deal with the complexities and vagaries that are way beyond us.

However, taxation, payrolls, directors loan, and all things numerical are our real weak point. I would like to improve my understanding to analyse where I might save accountancy fees, and to avoid complete ignorance when dealing with an accountant.

Therefore has anyone used any (simple & basic) books that they could recommend? It's a limited company.

Thanks

[Scott-CopyandDesign]

Well, I presume there is an accountancy version of this series, but I don't like the other editions, so won't be buying it!

Running a start-up travel company we aim to keep costs to a minimum. However we will have to find an accountant to deal with the complexities and vagaries that are way beyond us.

However, taxation, payrolls, directors loan, and all things numerical are our real weak point. I would like to improve my understanding to analyse where I might save accountancy fees, and to avoid complete ignorance when dealing with an accountant.

Therefore has anyone used any (simple & basic) books that they could recommend? It's a limited company.

Thanks

If this is a serious venture you should really think twice about starting this up until you have a good knowledge of accounting and business, or get someone financially-minded on board. I'm just starting 2 years of A-level accounting and I'm gonna need every second of those 2 years just to fit everything in, there is a lot to learn.

Accountants normally do quarterly accounts and end of year financials for £1000-£3000 usually. The problem is if you hire an accountant to do every transaction, balance sheet, ledger account, payroll and taxation for the entire year it will cost you a huge amount of money (it would be like taking on board another very expensive employee). Something you probably wont be able to afford as a start-up with minimal costs.

However to answer your original question here is the good old accounting for dummies: http://www.amazon.co.uk/Understanding-Business-Accounting-Dummies-UK/dp/0764570250

I would advise you look into taking accounting or business courses. I know theres a few companies who do studies from home which you can do in your spare time.

[Carl-CSNM]

I think the dummies books are more US based. ;)

[Travelling Sam]

Thanks Scott.

But we are starting up soon, so i'll have to deal with it! We can't hire a full time accountant for a company of 2 people!

However, I presume a good accountant will be able to advise us from the start what processes we can use to minimise costs when keeping track of accounts.

But I don't like the dummies books... any alternatives. They are so condescending. Oh the irony...!

[Scott-CopyandDesign]

Just check out amazon.co.uk, you should definately find something there.

Like I said before, be careful. You need to start recording all your expenses and income from day one or you'll have to backtrack through everything at a later date. At least try to learn how to do trial balances, balance sheets and Ledger accounts if thats all you can manage, it's fairly simple.

[Carl-CSNM]

The Inland revenue offer quite a few free courses, on keeping accounts sorted, basic book keeping etc. Give them a ring there quite helpful. ;)

[The Bookkeeper]

Business Accounts by David Cox is very good and recommended by the Institute of Certified Bookkeepers.

However, it may be worth getting a couple of quotes from freelance bookkeepers as the time you would spend doing the books yourself would likely be better spent concentrating on what you are good at- running your business. Poor bookkeeping throughout the year will cost you more in accounants fees at year end.

[Kent Accountant]

Not sure what kind of travel business you are in but you may need to think about VAT as it can be very complicated. You may need to consider the Tour Operators Margin Scheme
http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageVAT_ShowContent&id=HMCE_CL_000501&propertyType=document
or
Travel Agents and Tour Operators
http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageVAT_ShowContent&id=HMCE_CL_000135&propertyType=document

[Joyous]

Blimey Bob!

As you once said in one of your postings:

If that doesn't put him off doing it himself, nothing will


Regards

Joy

[Kent Accountant]

Blimey Bob!

As you once said in one of your postings:



Regards

Joy
Hi
For my sins I am on the Revenue Working Together groups for VAt and I/R and I am very much the sole practitioner representative. But occasionally the VAT specialists mention the "TOMS" scheme and complain about it. Frankly, I have never read the book and never expect to:)

[Travelling Sam]

Thanks Bob,

Bizarrely I'd already gone throught the Inland Revenue's section on Tour Operators, makes for fun bedtime reading!

It's very odd. We'd be selling Tailor Made Trips to South-East Asia, which I understand is VAT zero-rated.

However, I've been told that if we sold trips to Europe, certain elements are VAT applicable.

Likewise, if we sell through about travel agents (which will be about 10% of our business) we have to pay VAT on their commission.

So, it's as clear as mud!

I think I need to find a London based travel expert accountant (who of course offers outstanding advice at minimal cost!). And I will look at bookkeeping, although I suspect that will have to be done inhouse. I'll start Sage training or something!

I'll have a look at some of the suggested books in the meantime!

Thanks all

Sam

[Kent Accountant]

I know nothing about this subject other than it exists but I do see the TOMS guide includes
"
2.5 Is the TOMS affected by where the supplies are enjoyed?

No, the TOMS applies to travel services that are enjoyed:

within the UK;
within the EU (that is, other than the UK);
outside the EU."
which makes it seem that somehow or other South East Asia might be included. As you said, the best advice is to consult someone who has practical experience in this area