Accountant for start up

[BonnyclabberMugwump90]

Hi UKBF, further to my new member introduction I'd like to ask for advice on the need for an accountant in my circumstances.

For the record, I'm the only shareholder and director of the VAT registered Ltd company, there are no employees.

I have my domain and hosting set up ready to go but I'm trying to compile a definitive list of tasks I'd need to complete monthly, quarterly and annually with regards to the accounting side of the business. Something I struggled with during my A-Level business studies a few years ago

I'm going to need a lot of clearing up here so I'll add numbered indexes for you to use in your answers.

1) Is there anything missing from this list of annual account filing?

• Companies House - statutory accounts (balance sheet, profit/loss account, directors report (optional?), statement of audit exemption (micro-entity company)
• Tax Return (can be filed jointly with Companies House?) or is this to be done quarterly?
  
• Corporation Tax calculations and payment

2) Are these tasks which would be taken care of by an accountant?
I'm looking for a system in which I can update money spent and received by the company which feeds to my accountant and compiles that information into the accounting reports for use by HMRC and Companies House, and of course my own personal use.

I feel all at sea here because if I have a system in which I can do all of this, do I need to be paying an accountant?

Any advice or pointers greatly appreciated!

 

[tony84]

It may vary from accountant to accountant. In the past I have just supplied figures and had to supply bank statements so there could be some differences.

It might be worth a chat with some accountants and let them get an understanding of your situation and your business and see what they suggest?

I use @kevin.doran and my situation is a little outside the norm but we have worked together to come up with a process that works for the both of us.

 

[kevin.doran]

Hi @BonnyclabberMugwump90

99% of my clients use an online bookkeeping system called Clear Books - it does exactly as you describe and gives us a way of building a full picture of the financial position of your business as the weeks/months roll by.

I'm just about to dash out to a meeting but i'm free 3-5pm if you fancy a natter (02476 980440). Full details of who I am and what i'm about can be found here (please forgive me if anything's slightly messy, literally in the swings of making a few tweaks)

Or, happy to answer a few Q's on here later when I get chance...

 

[BonnyclabberMugwump90]

Thank you for the tips, I'll be speaking to a few accountants shortly.

Kevin, I'll take this up with you in a PM.

 

[SBlundell]

1. Annual accounts = correct (although the specifics of what's included depends on the size of the company). Usually the deadline is 9 months from the end of the accounting period (subject to first periods, amended accounting deadlines etc).
Tax return = filed annually, can be joint filed with CH.
Corporation tax = this is the company's tax return, that needs to be filled annually.

2. All of the above (and more) are typically part of an accountant's remit but of course all accountants are service providers - if you want them to do more / less it can always be discussed! In theory you can do all of the above yourself but really it comes down to how happy you are spending the time / confident you are that you are going to be able to deal with everything. The value in an accountant should be much more than just complying with filing requirements - they should also be helping you with your best tax efficiencies and understanding / improving your company's finances.

There are various accounting packages out there - what's important is that you find one that works for you.

 

[Socio South West]

Your question was 'Do I need to be paying an accountant?' My answer is that if you don't, a goodly chunk of your time will disappear into form filling and accounting instead of developing your business.

Let's say your accountancy bill is say £1000.... At £25/hr, that's 40 hrs of your time... That's before any savings and reductions in tax achieved by the accountant through claiming allowances and other items. It's also a week of your time gone when you could be concentrating on marketing, sales, product development whatever.

It's quite important to find an accountant that you feel you can work with rather than an automaton that spews streams of numbers and percentages at you: The general advice from an accountant can be as important as getting your tax information completed.

As others have said, accountancy costs can be saved by good book keeping, and accountants will be able to give you guidance on the book keeping packages they prefer to work with: The savings potential far outweighs the cost of a decent package, so don't discount Quickbooks, Sage etc when you are looking at this. Remember that information and reporting for you as the business manager can also be derived from the accounts package, so look for something that you can access management information easily from as well.

 

[MyAccountantOnline]

I feel all at sea here because if I have a system in which I can do all of this, do I need to be paying an accountant?

You need a good accountant!

A good accountant, one who is experienced and qualified, will most certainly deal with the accounting and tax requirements for you leaving you to do what you do best.

A large number of my firms clients use a system called Accounts Portal to do just as you mention ie ''update money spent and received by the company which feeds to my accountant'' (it's a great easy to use system which works very well) we then use that to deal with the accounts and tax matters.

If you want to send me a PM I'd be more than happy to help.

Very best of luck with your new venture and glad you are thinking about the accounting and tax now surprisingly not every one does.

 

[tony84]

Ive got to admit having a good accountant on board is pretty valuable.
Yes, it costs but so does having and professional do a job - even cowboys charge.

My accountant did my accounts for the first year last year and asked me a few questions that allowed me to put things through the books my previous accountant never mentioned. I wouldnt say that in itself paid for his charges but when you look at that, the time im saving by not doing it and the times I call him for advice (should I put my new car through my books or do it personally and claim the mileage, should I go limited, can I do this/that/the other) you can see the benfits.

I could come on here and ask and get a fairly generic answer or links to reams of pages on the HMRC website or I can give him a call and get an answer usually the same day.