giulio started this topic @ 22:16 on 10/02/2005
Hi,
I had my end of year account completed last june by an accountant who quite frankly i think ripped me off. My business is very small with hardly any invoices counting both purchases and sales. I have an awesome spreadsheet which tracks all my accounts and every quarter I have a VAT sheet which automatically calculates VAT hence my VAT return takes less than a minute.
However, in june I will need to do end of year accounts again and I don't fancy paying out for an accountant when my business is so small and work so negligable. Hence my questions are:
1) Is it OK and legal for me to do the end of year bits my self?
2) Do I simply do an online submission to companies house and inland revenue or is there more things i should be aware of?
Thanks in advance
Giulio
RE: Annual Returns / End of year Accounts
constantinesavva | 11/02/2005 10:34 AM
Hi
because there are a few rotten apples in the profession (like in any other profession) it doesn't necessarily mean that all accountants are not honest or that they don't offer any value added service to their clients. For example, in our practice we take pride in assisting our clients save as much tax as possible and we offer good advice how they can grow their business and steer clear of problems whilst taking advantage of favourable opportunities. An accountant with many years of experience and training, we believe is well positioned to offer this service than any other professional.
Of course it is a business owner's right of decisionhow to conduct his business and choose to DIY but I have seen many owners that in the end ended achieved exactly the opposite result ie overpaying their taxes or getting in trouble or even failing in business. It's not a matter of intelligence. A small business owner doesn't either have the time to devote towards analysing trends, identifying opportunities and problems and making sound decisions because he is too involved with day to day running. After all a small busines owenr is not an accountant but a decision maker that runs the show and needs understandable, reliable and timely info to do that.
So, it's really a small business owner that needs more a competent accountant if he is serious about growing the business and making a success out of it. Don't forget that the large business more often than not has the internal resources to carry out financial planning. Competition is a tough thing and can easily bring a small business down to its kness, unfortunately I've seen it so many times happening.
Please don't ake this as a lecture. I have spent some of my valuable time here trying to clear a negative generalisation about accountants.
Good luck!
James constant, Chartered Certified Accountant
http://www.taxadviceuk.com
FREE Special Report on how to beat the taxman, addressed to small the small business owenr in understandable language.
------------------------
Kind regards,
James Constantine
Chartered Certified Accountant
http://www.taxadviceuk.com
FREE Weekly Tax Tips for the small business owner, written in understandable language
RE: RE: Annual Returns / End of year Accounts
giulio | 11/02/2005 10:43 AM
Thanks for the advise and I assure you when my business needs grow I will look for a competant accountant. However, my invoices for this year so far are very few. I have not pushed the business at all and just let it tick along. Hence my profits are small and I don't want to blow them on an accountant. I feel I have spent the year earning them money. I just need to know if by doing these two items myself I will be OK for this year, and then next year I can go back to an accountant.
Thanks
Giulio
RE: Annual Returns / End of year Accounts
James Smith | 11/02/2005 02:30 PM
Giulo,
You might be ok as you have something to work from, but in my experience most people just don’t "get" double entry bookkeeping and struggle to do their own stat accounts. I wouldn’t be surprised to find the 3rd year’s fee substantial in digging you out of holes you have created in your DIY set. Im not being alarmist its just hard to do accounts if you dont really understand them.
From my point of view there is a fixed cost to preparing even the smallest set of statutory account properly just because there is a lot of paperwork to get through compared to a sole trader who can report on 3 lines for small turnovers. I normally recommend micro business to start up as sole traders for this very reason - its a lot easier. If this is going to be a small business long term then perhaps this is the wrong structure for you although dis-incorporating a trading business can be a bit fiddly.
I don’t know much you paid but my standard stat accounts fee for a small business is £575 for the year to cover the accounts prep, corporation tax and general advice during the year. This is based on good records (including a pre-prepared bank reconciliation for most clients). I do sometimes drop this towards £399 for a very simple set of accounts but you really cant get it done for much less by anyone competent unless someone is low balling to get your business. If you would like a quote please feel free to give me a ring to disucss.
Regards,
------------------------
James Smith
Chartered Accountant
www.jamesesmith.co.uk
01235 536 773
---------------------------
Your indispensable guide to Small Business Bookkeeping, Self-Assessment & VAT
