Which accounting software to use?

[sipexa]

Hi,

Recently I have established a new company, but with this company I did not wish to use any accountant and decided to use an accounting software due to lowering of costs.

And later on, I have started to use Quickbooks. I was thinking that my new business is not VAT registered and it will not have that volume to be VAT registered in a short term.

So, only filing accounts to HMRC and Company House for corporation tax once in a year will be sufficient. So online accounting software seem good to go.

When I search the documentation how to submit when time comes, I saw that Quickbooks does not support.

Is there any online accounting software which supports this operation?

Thank you

 

[StevensOnln1]

Accounting software is used for record keeping, most of them aren't designed for filing accounts or tax returns. You seem to be confusing the role of an accountant with book keeping (an accountant is a highly qualified professional who will do far more than just enter invoices/transactions into a computer). There are various software packages out there which will take your figures from QuickBooks and produce statutory accounts and tax returns, but without the knowledge and experience of an accountant how will you know if what you produce is correct?

 

[WaveJumper]

Several things spring to mind, have you thought this through do you really need to be ltd at the moment is this the correct route for you. If your turnover is substantial and you feel ltd is the route for you as above mentioned an accountant does more than “just book keeping” they are also there to advice you on tax issues and to be honest they will probably save you more money than they cost you and you’ll be able sleep at night.

Get the foundations right now with proper professional advice.

Also look out for changes coming on the horizon:

Changes to accounts, part 2: small company filing options - Companies House

News and updates from Companies House

companieshouse.blog.gov.uk

 

[MyAccountantOnline]

Hi,

Recently I have established a new company, but with this company I did not wish to use any accountant and decided to use an accounting software due to lowering of costs.

And later on, I have started to use Quickbooks. I was thinking that my new business is not VAT registered and it will not have that volume to be VAT registered in a short term.

So, only filing accounts to HMRC and Company House for corporation tax once in a year will be sufficient. So online accounting software seem good to go.

When I search the documentation how to submit when time comes, I saw that Quickbooks does not support.

Is there any online accounting software which supports this operation?

Thank you

As others have said dont confuse bookkeeping with accounting, it's very different.

Recording transactions (bookkeeping) is relatively easy. Interpreting that data and ensuring all necessary requirements are met and your company pays no more in tax than is legally necessary requires the skill and experience of an accountant.

It is so easy to make a costly mistake trying to save money, as an accountant I have seen it so many times.

If you keep good accurate accounting records you will minimise accountants fees.

If you do want to do it yourself the cheapest option will probably be to use HMRC's free software. I've never used it myself so can't tell you how easy it is to use.

 

[GraemeL]

Get an accountant!

 

[paulears]

I use freeagent, yet my accountant every year finds things, and enters extra things I still don't understand, removes others I thought were correct. He lowers my tax liability simply by knowing what I do, and what I could use and don't, and what I think I should but can't. Your business must be tiny and very simple to not employ an accountant.

 

[Ivel]

Xero has an option to file accounts and tax returns, but I have never used it. Do the bookkeeping yourself, but when the time comes to file the accounts, get in touch with an accountant. Most of us offer a free initial consultation, and it will be beneficial for you. From experience, the DYI accounts and tax returns are the ones that are the biggest mess. I have seen people preparing and submitting financial reports without a very basic understanding of accruals and prepayments, assets and expenses, stock or COGS. It gets even funnier when the VAT threshold is hit. Often it works out more expensive to fix errors than to pay and get it done properly.

 

[paulears]

My account told me before I joined him that he would save me far more than he cost me, and I think that's been true.

 

[DontAsk]

Do the bookkeeping yourself, but when the time comes to file the accounts, get in touch with an accountant.

This ^^^.

Be organised, collect everything (invoices, etc.) electronically to make the accountants life as easy as possible. I was commended by mine for how organised I was

 

[SyedAccountant]

Hi, Have a look at Quickbooks website & search (Would send the link if allowed)

‘File your Corporation Tax return using Workpapers in QuickBooks Online Accountant’​

If you still need help you can contact me & I’d be more than happy to assist you.

 

[WaveJumper]

Xero get my thumbs up

 

[AmazonGeek]

The main reasons for going limited are:

1. To protect yourself from liability. As a sole trader you are completely exposed so if you get into debt, it is a personal debt and you can be chased for it and potentially lose your home/assets if it is big enough. Also, if you sell something and it injures someone (for example), you could be personally sued and again, lose your assets. Limited companies absorb those risks and, as long as you operate as a director properly, you cannot be touched personally. If the company fails and owes money, it can be dissolved/struck off and you won't personally be liable.
   
   
2. To be more tax efficient. As a sole trader, any profit you make is taxed at your personal income tax level. So if you do really well and make over £50k then you would paying 40% on anything above that (give or take). If you do REALLY well, then it is very tax inefficient. In this situation it would be better to pay yourself enough to earn an NI stamp (for your pension) but the bulk as dividends. This is much more tax efficient but it only works over a certain value. Below that value (ignoring the liability issue) it is better to be a sole trader. Plus you have bigger accountancy bills for limited companies than for sole traders.

The best thing to do is talk to an accountant and work it all out. A good one will give you an honest appraisal and advise which method is best for you.

As someone else said, don't confuse software, bookkeeping and accountancy...

Software
You will need software to handle everything. 'Making Tax Digital' (MTD) means you can't do it via paperwork/spreadsheet any more - it must be by computer/cloud with an approved provider like Xero or Quickbooks. They are not expensive - a few pounds per month.

Bookkeeping
You can probably do this yourself if it is a straightforward enough business and anything you don't understand can probably be learnt from the internet. Bookkeepers aren't that expensive though, especially in the age of the digital nomad. We use a company in India called Brickwork and it costs about $450 every 3 months to do the books for thousands of transactions each month across marketplaces/platforms in 10 different countries.

Accountancy
Don't try and do the actual accountancy part yourself unless you really know what you are doing. You could get in a real pickle and you will probably end up losing more by paying too much tax. Get a decent accountant for this. Again, it doesn't have to be that expensive - a few hundred for a sole trader and around £800-£1200 typically for a lowish turnover limited company unless you start turning over bigger amounts.

 

[Paul Kelly ICHYB]

To be more tax efficient. As a sole trader, any profit you make is taxed at your personal income tax level

Unless planned correctly, you will still pay full PAYE tax and corporation tax!

 

[AmazonGeek]

Unless planned correctly, you will still pay full PAYE tax and corporation tax!

Not as a sole trader obviously. Corporation tax is only for companies. And as a limited company, yes you definitely need a good accountant to make sure you are paying no more than you should, so correct planning is vital.

Unless things have changed, above a certain level of profit it makes sense to be a limited company. The tax saved by paying yourself a basic stamp plus dividends versus personal tax on profit exceeds the extra costs incurred by a ltd co (higher accountancy fees for example).

People may also choose to incorporate below that profit level for the extra protection or the extra professionalism/kudos it gives of course.

 

[Paul Kelly ICHYB]

My comment was based on

The main reasons for going limited are: