• Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
  • Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!

Does anyone do their own 'accounting' and admin?

Collapse
X
  •  
  • Filter
  • Time
  • Show
Clear All
new posts

    Does anyone do their own 'accounting' and admin?

    .. just wondered about how you find it.

    Thanks.

    #2
    No way, far too much work and too much risk if you get it wrong.

    Comment


      #3
      yes I've been doing my own since April, bought a copy of sage instant accounts and sage payroll... I don't know why everyone thinks its rocket science and that only accountants can do it?.. book keeping is straight forward.

      I've got an accountant who will do my company returns at the end of the year for me and who also advises on any queries I have with the week to week running.

      [edit] forgot to add it takes about 20 minutes of my time once a week ? [/edit]
      The cycle of life: born > learn > work > learn > dead.

      Comment


        #4
        Chris79, day-to-day do, what do you record? Expenses? Also, what exactly do you mean that the accountant does your 'returns'?

        Thanks.
        Last edited by RockyBalboa; 26 May 2007, 22:18.

        Comment


          #5
          I do all my own VAT, PAYE etc. and just bundle everything together once a year for my accountant to do the end of year profit and loss etc.

          Comment


            #6
            Originally posted by RockyBalboa
            Chris79, day-to-day do, what do you record? Expenses? Also, what exactly do you mean that the accountant does your 'returns'?

            Thanks.
            This is what I do:-

            I run my own payroll once a week using sage payroll. I tell it how much I want to be paid and it prints me a payslip and calculates how much tax/NI I need to pay.

            This then transfers into sage instant accounts which is basically a record of all my business transactions (incomings/outgoings/purchases/expenses,etc).

            I also keep a spreadsheet of my mileage etc, and enter this into sage instant accounts, along with any other expenses.

            Once I have paid from my business bank account my wage and my expenses, the rest is then deemed to be profit, which I then pay myself as a dividend. All the taxes/NI/etc goes into my business savings account where I keep it (and earn interest on it) until it needs to be paid.

            Quarterly I send my tax/NI/VAT returns to HMRC, and at the end of the year I give my sage instant account transactions to my accountant who does my company returns (which must be done by a qualified accountant by law).

            All in all it is a very simple procedure and takes me about 20 minutes per week. It also helps put me well outside IR35 as I'm running my own legitimate business, and puts me in full control of what exactly is going on. For anything ad-hoc which I don't understand I just call my accountant who charges £15 per hour for his services, although since starting all this I've only had to call him once which was to ask him about the flat rate VAT scheme (I'm registering for this as I don't make many business purchases and it means that I charge my clients 17.5% vat, but only send the vat man 12% back, so I can keep the difference).

            For people who say that all this must only be done by an accountant are either lazy or just don't understand what's involved. Before April 6th I was using an MSC, after April 6th I decided to go it alone, it took me a few hours to sit down and learn it all, there's not much that can really go wrong if you keep it simple and do everything correctly. You just need to be organised and make sure you send off your PAYE/NI/VAT etc before the deadlines. There's a lot to get setup at first, a lot of forms to complete to HMRC etc, but once it's up and running it's a piece of p**s.
            The cycle of life: born > learn > work > learn > dead.

            Comment


              #7
              Originally posted by chris79
              I give my sage instant account transactions to my accountant who does my company returns (which must be done by a qualified accountant by law).

              It also helps put me well outside IR35 as I'm running my own legitimate business, and puts me in full control of what exactly is going on. For anything ad-hoc which I don't understand I just call my accountant who charges £15 per hour for his services

              Before April 6th I was using an MSC, after April 6th I decided to go it alone, it took me a few hours to sit down and learn it all
              OK, a few points, the company returns don't have to be done by a qualified accountant "by law" - there is no such law and many people manage it themselves without help, and likewise many people use unqualified and unregulated accountants.

              I really don't think your accountant is charging £15 per hour if s/he is really a qualified or experienced accountant. Are you sure it isn't £15 per "unit" which can be as little as 5 minutes of time (check their letter of engagement). If it really is only £15, I doubt whether they are qualifed/experienced - are they actually a book-keeper, but even then £15 per hour is still low for a book-keeper.

              Doing you own books doesn't keep you outside IR35 nor does it make you "more of a business".

              It is also worthy of note for other readers that you have only been doing your own books since April, i.e. less than two months, according to your post, so you havn't gone through the year end procedures yet, and may not have even gone through quarter end procedures.

              I'm all for people doing it themselves if they wish to, and if they are willing to learn it themselves and take the risks if they don't do it properly, but I don't like people telling half-truths to others and making out it is fact.

              Comment


                #8
                Originally posted by WHA
                OK, a few points, the company returns don't have to be done by a qualified accountant "by law" - there is no such law and many people manage it themselves without help, and likewise many people use unqualified and unregulated accountants.

                I really don't think your accountant is charging £15 per hour if s/he is really a qualified or experienced accountant. Are you sure it isn't £15 per "unit" which can be as little as 5 minutes of time (check their letter of engagement). If it really is only £15, I doubt whether they are qualifed/experienced - are they actually a book-keeper, but even then £15 per hour is still low for a book-keeper.

                Doing you own books doesn't keep you outside IR35 nor does it make you "more of a business".

                It is also worthy of note for other readers that you have only been doing your own books since April, i.e. less than two months, according to your post, so you havn't gone through the year end procedures yet, and may not have even gone through quarter end procedures.

                I'm all for people doing it themselves if they wish to, and if they are willing to learn it themselves and take the risks if they don't do it properly, but I don't like people telling half-truths to others and making out it is fact.


                My accountant is a friend of the family hence the £15/hour rate he charges, don't take his fee as an indication of his professional status.

                You are right in saying I have not yet sent any returns back, but I have all the information packs from HMRC to do this, the only thing that I have not yet done is actually processed a payment with them (you get a payment book etc to do all this)?

                As for IR35, I'm sorry but if you are using any of the 'former' MSC companies, then you run the risk of being caught under the new April legislation, hence the reason I decided to go it alone in April to remove this risk completely. You have to be seen to be in full control of your own affairs, dictating your own salary, company decisions, etc. not sitting at a desk earning money and having a company process your affairs for you. For me this was an easy choice, simply remove the risk and do it yourself.

                As far as I was aware after reading companies house it was a requirement for an accountant to check your returns, I will double check this but I'm sure I've read this somewhere.

                I'm only telling people from my own experience, the risk of running a company is up to the individual, but from a lot of the things I read on this forum people make it out to be far more difficult than it actually is? For a small 'contractor' company it is by no means rocket science.
                Last edited by chris79; 27 May 2007, 16:13.
                The cycle of life: born > learn > work > learn > dead.

                Comment


                  #9
                  I am quite familiar with 'double entry' accounting but do you guys know of a sample spreadsheet I can play around with? If I can do the general stuff myself like set the LTD up and do the day-to-day recording of expenses (etc.) , I'd rather do that and save a few quid.

                  Thanks.

                  Comment


                    #10
                    Originally posted by RockyBalboa
                    I am quite familiar with 'double entry' accounting but do you guys know of a sample spreadsheet I can play around with? If I can do the general stuff myself like set the LTD up and do the day-to-day recording of expenses (etc.) , I'd rather do that and save a few quid.

                    Thanks.

                    Just buy a copy of sage instant accounts, £70 on amazon... goes as a business expense too.

                    You might want to check out this thread I made last month when I was starting out, it gives a basic overview as to what is required to get up and running. There might be a few minor errors so don't take it as the bible it was just what I wrote as I was going alone when I started out.

                    http://forums.contractoruk.com/thread16913.html
                    Last edited by chris79; 27 May 2007, 18:42.
                    The cycle of life: born > learn > work > learn > dead.

                    Comment

                    Working...
                    X