Where to start learning abut accounting / get help for a small business / sole trader?

[Valerie_Leri]

I registered my business with HMRC and going to submit self-assessment this year. I have no prior experience whatsoever and I do not want the whole thing to be done for me by an accountant. I want to have control over what is going on. I need some help with setting up everything, I have some questions, I need some education about accounting. Where do I start?

For example, I'm not sure if I need to be self-employed as a director (that is what I ticked when setting a company as a sole trader). I received a director's questionnaire from HMRC but I have another part-time job (employed by another company). I am not sure what is best for me and if I even have to be a director for my side hassle business or I can just run it without a director? I am a jeweller, have a workshop, work exclusively by myself and sell online.

I am also slightly confused regarding whether I should have 2 separate Gateway accounts for my 'official' employment (personal account) and side hassle (business account)?

I also have a few questions about how best to answer some of the questions when submitting self-assessment form. Where can I get these answered? How other people go about this? What advise would you give?

Clearly, it's serious stuff and it needs to be done right.

 

[Mark T Jones]

As a starting point, HMRC themselves run lots of online sessions on a wide range of topics for small businesses / start ups.

As a sole trader you are self-employed, not a director. If you set up a limited company, you will need to be a director. (But I suspect you don't need a ltd company right now).

 

[MyAccountantOnline]

I registered my business with HMRC and going to submit self-assessment this year. I have no prior experience whatsoever and I do not want the whole thing to be done for me by an accountant. I want to have control over what is going on. I need some help with setting up everything, I have some questions, I need some education about accounting. Where do I start?

For example, I'm not sure if I need to be self-employed as a director (that is what I ticked when setting a company as a sole trader). I received a director's questionnaire from HMRC but I have another part-time job (employed by another company). I am not sure what is best for me and if I even have to be a director for my side hassle business or I can just run it without a director? I am a jeweller, have a workshop, work exclusively by myself and sell online.

I am also slightly confused regarding whether I should have 2 separate Gateway accounts for my 'official' employment (personal account) and side hassle (business account)?

I also have a few questions about how best to answer some of the questions when submitting self-assessment form. Where can I get these answered? How other people go about this? What advise would you give?

Clearly, it's serious stuff and it needs to be done right.

That's exactly the sort of questions you ask an accountant. Accountants take a very long time to gain the knowledge and experience we have to do the job properly.

It's so easy to make a costly mistake trying to DIY, as an accountant looking after small and new businesses, I have seen it SO many times. People paying totally avoidable and unnecessary tax (and penalties) where they've picked up a bit of information online and tried to deal with matters themselves.

You can still take a very active role in running and monitoring your business by keeping good accurate up to date records but do get proper professional advice on tax matters, it'll be money well spent.

 

[GLAbusiness]

You will never know as much as an accountant from DIY reading and research. The two most important stages where an accountant can steer you in the right direction and save you some money are:

1. Initial start up. Ideally before you start filling in any HMRC forms
2. The end of your first year of trading. If you get this right it avoids errors creeping in to future years.

 

[Ozzy]

I have no prior experience whatsoever and I do not want the whole thing to be done for me by an accountant. I want to have control over what is going on.

Hi there,
You've had a couple of replies already from accountants and I agree with their answers, but I wanted to give you a reply not from an accountant to avoid any perception of bias.

I would never run a business without having an accountant (and solicitor) appointed for when I need them, and I would always turn to them for their areas of expertise but would never pay them for something I am confident in doing myself. For example, I've done my own R&D tax credits returns for the past few years which some people outsource to specialist accountants - but I know and am confident in doing this.

When I'm not confident, I turn to the experts, but I always want to understand and know what's going on. I do not want to take anything away from them, but because the buck always stops with me, it is my duty to understand and ultimately accountable for everything in my business.

I would encourage you to get an accountant involved, but you can always ask them to support you in doing much of everything yourself. For example, if you are wanting to keep costs down then discuss this and a good adviser will work with you around that.

 

[Valerie_Leri]

Thank you very much for your advice! It's been very helpful and indeed gave me the clarity I was looking for. It makes total sense to consult with experts, especially at the beginning. I was not sure about whether I should get an accountant involved but now I definitely see that it is not just a good idea but a necessity.
Thank you all! This forum is very helpful indeed!

 

[WaveJumper]

Sounds like you are taking on all the good advice above. I would add choose your accountant carefully don't just go with the first speak to several, pick one you feel 'comfortable with' and who understands what your doing.

Having an accountant does not mean your loosing control of your affairs in fact its probably the complete opposite you will get a better understanding of book keeping, filing, tax etc etc.

You will sleep better at night knowing your affairs are in proper order, and in my experience will save you more than you pay them. Get the foundations right now and the rest will follow, best of luck