Stupid question - do you need an accountant?

[sherbetdipdab]

Morning.

If you do your own VAT return and prepare your own year end, do you need someone registered with financial authority to then submit them to HMRC?

Is that why I’ve never heard of a business owner doing that themselves.

 

[obscure]

No. Most business owners don't do it themselves because...
a) They aren't qualified/experienced enough and mistakes cost far more than paying an accountant.
b) They have better things to do with their time (and it would take them longer than it would take an experienced accountant), which would be better spent doing business instead of sorting through receipts etc.

 

[bodgitt&scarperLTD]

You should differentiate between a bookeeper and an accountant.

Bookeeping (sorting through receipts, bank statements and entering into accounts) is simple. I like to do mine myself, as it fits in well alongside doing quotes and invoices and running the workshop. I just use an Excel spreadsheet I made. You could delegate it to a trusted staff member. Self employed bookeepers are also plentiful at reasonable rates.

I pass my monthly books to my accountant, who does VAT and end of year returns. Generally speaking, professional accountants don't like to do bookeeping. The exception would be the 'small business specialists' who will delight at bamboozzling you and charging excessively to do both bookeeping and accounting.

 

[Iain_Henderson]

I've been doing our accounts for years now. Have always done the 'book keeping' part myself and after our accountant died decided to do the final accounts and submissions myself.

If your business isn't complicated and profits not huge the 'savings' a qualified accountant may make may not be worthwhile.

I use Andica software for the submission part and haven't had any problems.

 

[Mr D]

For many of us small businesses we choose not to spend the time necessary to learn how to do limited company year end accounts and submit them. Keeping an eye on the business by own bookkeeping is normal, then paying someone else to do the accounts.

Accountant also makes sure any errors showing up get dealt with - I'm too close to the business when doing the bookkeeping to notice some errors.

 

[sherbetdipdab]

Thanks for putting me straight. Yeah i do the same. It's quite good to do the ins and outs as you can check what you're spending on and how much you're making - roughly.

Slightly off topic, but what else do you use your accountants for. Seen a few articles about how your accountants are now more than just accountants. Some even have funky logos now! Do you tend to drop yours an email or call them if you have a VAT or TAX question. I can't see ours given us much business advice to be honest.

 

[Deleted member 59730]

Apart from a few quarters before we went decimal * It has taken me or my business about 15 minutes every 3 months to do the VAT return. Anyone paying an accountant to do that has more money than sense.

*I was too mean to buy a £sd calculator for just a few months use.

 

[Mr D]

Thanks for putting me straight. Yeah i do the same. It's quite good to do the ins and outs as you can check what you're spending on and how much you're making - roughly.

Slightly off topic, but what else do you use your accountants for. Seen a few articles about how your accountants are now more than just accountants. Some even have funky logos now! Do you tend to drop yours an email or call them if you have a VAT or TAX question. I can't see ours given us much business advice to be honest.

My previous accountant with old business was quite expensive and service included answering a bunch of questions.
However I'm wary of taking business advice from someone who tells me 5 years after we started using ebay and amazon that my amazon bill is too high and I should concentrate on ebay to get better profit... when I make more profit per sale on amazon!


Current accountant does the accounts and submission, basic service. And a lot cheaper.

 

[billmccallum1957]

We us a monthly spreadsheet, which I see as an essential part of ongoing monitoring of the business, but it only takes half an hour a week and less than 2 hours to do a VAT return.

We rely on the accountant to take care of payroll, pensions, year end submissions for the company and personal tax for both directors... and it only costs us £96 a month.

 

[bodgitt&scarperLTD]

We us a monthly spreadsheet, which I see as an essential part of ongoing monitoring of the business, but it only takes half an hour a week and less than 2 hours to do a VAT return.

We rely on the accountant to take care of payroll, pensions, year end submissions for the company and personal tax for both directors... and it only costs us £96 a month.

Switch directors personal tax for VAT and I'm the same...only my accountant is much cheaper!

I agree with you about the monthly spreadsheet allowing you to keep your finger on the pulse.

 

[Adam Dean]

I agree with the others. No need for an accountant. In this day and age of the internet you can do everything yourself (especially for small businesses - sole traders). I used to do mine myself but now that I have a larger operation I have a dedicated accountant. Happy to share contact details if you need a good accountant to talk to.