Accounting help, Financial Year... I'm totally lost now :(

[wmguk]

Hey Guys,

Here is the situation.

Limited Company registered 04/01/2008
VAT Registration Effective: 04/01/2008 (Only registered in Dec 08 though)
Using SAGE Instant Accounts V12

---

I recently registered for VAT, as my purchases this year mean if I do my claim I will be owed several grand!

The sage system I used failed, and I didnt have any back ups, so I now need to put EVERYTHING back in to the accounts, (Luckily I still have everything, in month order! - Thankfully)

I need to get a VAT return in ASAP, and Companies house need sorting, but I need to know should I set Sage to do my financial year as Jan - Dec? so it matches my VAT and LTD?

This is my first year of trading, and its been very poor, so I dont really have the cash to pay accountant, and I should be able to do this ok, cause of sage...

[wood1e2]

Re-enter everything into SAGE, then you can run the VAT return from the financial module. Although SAGE does work everything out, if something has been entered wrongly then the VAT return will be wrong.

So do a manually reconciliation or the SAGE VAT return.

Always best to run back-ups after major functions have been completed, ie a month end or before VAT renturn reconciliation, so if something is wrong you can install backup and start again without having to imput various post VAT recon conrrections.

As for what VAT you can claim, I am not sure but I think you can include VAT purchases from x period of time prior to registration, I am sure the VAT website will have full details.

Also you may have to re-issue invoices to customers as there may be a difference to when you were registered and when you revcieved the VAT registration cert, obviously an invoice without a VAT number is not a VAT invoice and therefore outside the scope of VAT (this is normally T9 on SAGE)

Hope this helps

[MyAccountantOnline]

Hey Guys,

Here is the situation.

Limited Company registered 04/01/2008
VAT Registration Effective: 04/01/2008 (Only registered in Dec 08 though)
Using SAGE Instant Accounts V12

---

I recently registered for VAT, as my purchases this year mean if I do my claim I will be owed several grand!

The sage system I used failed, and I didnt have any back ups, so I now need to put EVERYTHING back in to the accounts, (Luckily I still have everything, in month order! - Thankfully)

I need to get a VAT return in ASAP, and Companies house need sorting, but I need to know should I set Sage to do my financial year as Jan - Dec? so it matches my VAT and LTD?

This is my first year of trading, and its been very poor, so I dont really have the cash to pay accountant, and I should be able to do this ok, cause of sage...


You will find your company financial year end on Companies House website www.companieshouse.gov.uk (http://www.companieshouse.gov.uk). This is what you should set any accounting records you do to.

Sage is a good package for bookkeeping and management ie internal accounting but it isnt designed to produce statutory year end accounts and deal with the Corporation tax returns.

Accountants take many years to learn how to deal with this and with respect you couldnt be expected to be able to deal with this yourself properly.

Well kept Sage records will definately reduce your accountancy fees but you do need an accountant to do the rest.

It probably isnt as expensive as you thought and a good accountant can save you money as well!

[Alison Jones]

This is my first year of trading, and its been very poor, so I dont really have the cash to pay accountant, and I should be able to do this ok, cause of sage...[/quote]

As mentioned further in the thread about needing an accountant to prepare financial accounts for Companies House, a lot of new small businesses cannot afford the costs of accountants. Sage does not provide the accounts in the right format for Companies House or the corporation form. I use Sage for everyday bookkeeping/invoicing, and for year end I have bought DIY Accounting package which has the right format of accounts for companies house and the corporation tax form, this cost under £20. Have not used it yet (waiting for a quiet time) but does look quite easy to use. I know that sometimes the owner of DIY Accounting posts on this forum, but if you google DIY accounting comes up with website with information and can buy the software through paypal.

Alison

[MyAccountantOnline]

Alison I do take on board what you say but as a qualified accountant who spent many years learning what I do, and having done the job for many years, no cheap bit of software can truly replace a paid for professional. If it could their would be no need for accountants.

This isnt a dig at all but sometimes people dont realise the hard work and experience required to deal with accounts and tax, and learn to their cost.

[Alison Jones]

Alison I do take on board what you say but as a qualified accountant who spent many years learning what I do, and having done the job for many years, no cheap bit of software can truly replace a paid for professional. If it could their would be no need for accountants.

This isnt a dig at all but sometimes people dont realise the hard work and experience required to deal with accounts and tax, and learn to their cost.


New businesses that have started up, there are so many other start up costs, overheads etc, many cannot in the first year if not longer be able to afford the costs of an accountant.

I would have to disagree with you about using software to do own accounts, if people were not wanting this then there would not have been a website to purchase this type of software from, people would be buying this product as no company would keep a website open as website hosting/domain etc costs if they were not getting any sales. This particular software I think was written by a qualified accountant, so might not be as good as having an accountant prepare accounts but it is the next best thing for new businesses who are not in the position to hire an accountant.

Alison

[stewartsetter]

Drop me a line if you need any assistance, we specialise in working with startup and cash strapted companies.

Stewart

Hey Guys,

Here is the situation.

Limited Company registered 04/01/2008
VAT Registration Effective: 04/01/2008 (Only registered in Dec 08 though)
Using SAGE Instant Accounts V12

---

I recently registered for VAT, as my purchases this year mean if I do my claim I will be owed several grand!

The sage system I used failed, and I didnt have any back ups, so I now need to put EVERYTHING back in to the accounts, (Luckily I still have everything, in month order! - Thankfully)

I need to get a VAT return in ASAP, and Companies house need sorting, but I need to know should I set Sage to do my financial year as Jan - Dec? so it matches my VAT and LTD?

This is my first year of trading, and its been very poor, so I dont really have the cash to pay accountant, and I should be able to do this ok, cause of sage...

[Zeno]

New businesses that have started up, there are so many other start up costs, overheads etc, many cannot in the first year if not longer be able to afford the costs of an accountant.

I would have to disagree with you about using software to do own accounts, if people were not wanting this then there would not have been a website to purchase this type of software from, people would be buying this product as no company would keep a website open as website hosting/domain etc costs if they were not getting any sales. This particular software I think was written by a qualified accountant, so might not be as good as having an accountant prepare accounts but it is the next best thing for new businesses who are not in the position to hire an accountant.

Alison

In my opinion, a new start up business particularly one run by inexperinced or new to business owners cannot afford not have good accountancy & tax advice. If they cannot afford a service then I would say it calls into question the feasibility of their business plan.

I don't believe that Terry, who runs DIY accounting, intends it to be used in place of an accountant. There is no software in existance that will fully automate the process of preparing financial statements. There is no software either that can interprete these accounts and apply either general business advice or tax advice to them.

[TraceyAnn]

Hi

I have to agree with Nicola, in that you would probably be better off getting advice from an Accountant.

I qualified as an Accounting Technician and worked at Accountants some years ago where I dealt with accounts all the time but now as I have been away from that side of things and work from myself as a bookkeeper, i concentrate on getting the records of my clients correct to aid the accountants at the year end. My husband is self employed and although I can do all his accounts myself, I do use accountants to complete the tax side of things, to make sure everything is done correctly and also to receive advice on how we may be able to save tax etc.

With regards to your VAT registration, as you have registered in Dec 08, as far as I am aware, you can only reclaim the VAT on goods that you actually still have, not on anything that has been sold ie assets and stock in hand.

[wood1e2]

This particular software I think was written by a qualified accountant, so might not be as good as having an accountant prepare accounts but it is the next best thing for new businesses who are not in the position to hire an accountant.

Alison

I am not sure what particular software you are talking about, but Sage may now have accountants to help development and they may have had in the past, but the software was developed by Sage when they were cheque printers, not software developers.

As for others I don't know :)

[wmguk]

Hi All,

Wow, what a debate this sparked lol,

I completely agree that I need an accountant, however the local accountant (TaxAssist) wanted nearly £1200 a year to complete the VAT, all LTD paperwork, and corporation tax, + personal liability, and they include some form of insurance against fines...

My CH registration states:

Accounting Reference Date: 31/01
Last Accounts Made Up To: (NO ACCOUNTS FILED)
Next Accounts Due: 04/11/2009
Last Return Made Up To:
Next Return Due: 01/02/2009

---

Also my VAT reg, I'm only claiming back on computers, software, desks etc, I'm a web design company, with a couple of employees, so the only services I buy in are servers etc (based in the US now) and stock for clients computer upgrades, but they are bought in and sold on the same week normally.

I love sage, and I'm quite happy with it, but there are a few things im not sure about, i.e. if I start my accounts now, and put in last jans info, then do the end of month, will it show it was run today, or can I tell it the date is jan?

[Zeno]

You want to have Sage set as commencing Feb-08 so your Year End is correct at Jan-09.

Anything you enter in Jan-08 will spark a wee warning about "This transaction is before the current financial year" and will not be included in the current years profit & loss. Therefore it may be easier to just enter anything prior to Jan-08 as happening on 1st February 2008.

[wood1e2]

TaxAssist - are a franchise (I think), why not look in the yellow pages and find one that is local to local people.

Or speak to friend etc. I could recommend someone but unless you are in colchester everthing would have to be done by phone/email, which is effecient but you may want face to face.

Re VAT what about fuel/rent/stationery/software...even if it is outside the VAT scope you still have to put it in your VAT return as purchases.

You can claim the VAT back on goods upto three years prior and on services up to 6 months prior to registration.

Hope this helps

[wmguk]

my rent currently includes heating, water, cleaning etc and is currently 0% VAT as it goes through the books as promotional materials ( I rent my offices from my printing company), I bought all my software etc a while back.. basically I took about £8000 and started the company so all I pay is rent, servers and staff, plus some advertising, insurance....

everything is pretty tidy regarding outgoings really, just a case of getting things sorted with the bookwork :(

[Zeno]

Depending on your turnover you may be better off under the flat rate scheme for VAT.

http://www.hmrc.gov.uk/vat/account-flat.htm

[wood1e2]

So there is PAYE to sort as well? Do you use Sage for that as well?

You can run your month end whenever you like, I never run one...until the end of year.

What did you buy with that £8000 there may be VAT you can add in there.

If you want any further regards accountants drop me a PM :)

[TaxAssist]

TaxAssist Accountants are a franchise and im assuming wmguk has chosen the closest accountant to him. Where abouts in the UK are you based. £1,200 for a Ltd company accounts plus all the other items sounds about right. Have you had quotes from other accountants for you to base this on?