Can anyone recommend a book for home accounting for a small business? Also what's a good software package to manage your accounts? I don't need anything fancy - just the basics.
Thanks,
Gcol
Thanks,
Gcol
DIY accounting
- Thread starter gcol
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gcol, just spoken to my wife, who is a certified accountant and now is a self employed book keeper for lots of small businesses, says the following:-
if you want to learn she cant really recomend any books, but contact learn direct or one of your local colleges as most will do a basic quick course to give you an idea.
in terms of programs, if you are vat registered and do cash accounting then go for sage, if not then go for quick books.
she also says and cannot stress highly enough, spea to your accountant first and find out exactly what they want from you in terms of record keeping etc, and if you havnt got one, get one!
hope it helps! (thank god ive got her!
)
if you want to learn she cant really recomend any books, but contact learn direct or one of your local colleges as most will do a basic quick course to give you an idea.
in terms of programs, if you are vat registered and do cash accounting then go for sage, if not then go for quick books.
she also says and cannot stress highly enough, spea to your accountant first and find out exactly what they want from you in terms of record keeping etc, and if you havnt got one, get one!
hope it helps! (thank god ive got her!
)Thanks Thermo,
Your wife ain't gonna like this but the reason I want to find out is so that I don't need an accountant.
Gcol
Your wife ain't gonna like this but the reason I want to find out is so that I don't need an accountant.
Gcol
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We use Sage, which is ok. I have heard that quickbooks is better. These are both pretty big programs but you only need to use the bits you want. Try also MS Money. You will find them all on ebay I expect. Try also your local Business Link who may be able to point you in the direction of free or subsidised training.
You get on with your business, and do your book keeping, then get an accountant if you have a substantial income. They will actually save you money while you do your work. They will field all the nasty probing questions from the taxman. Otherwise you will have to do it, and you could give the wrong answer. Gotcha!!!!
that was the point i was about to make oilman. doing the books is fine, but you are doing it from a position of little knowledge. When it comes to the final accounts, do you know exactly what you can and cant claim for? do you know all the allowances? I cant believe the stuff my mrs says we can legitamalty claim for and she is conservative in what she will put through. A decent accountant will save you money in your tax bills and save a lot of heartache. The mount of times my wife comes home with the books and info from clients who think they know what they are doing, even with computer programs and she has to basically redo the lot, as they have put it in wrong categories and so cant claim as much etc is beyond belief. (thank god ive got her!)
Also be wary of buying a program from ebay, as you may not get the licence and the back up which makes it worthless.
Also be wary of buying a program from ebay, as you may not get the licence and the back up which makes it worthless.
Thanks hermes.
Thermo, it's not so much the fact that I want to save money. I feel that my requirements are very basic and I find it hard to understand whether I actually need an accountant. Hence the book, to see what sort of things I need to look at.
I buy equipment, do jobs for people, get paid and that's it. Yeah I have a van and tools, diesel etc. What I don't want to happen is for me to do my books, give all the stuff to the accountant and for them to say "yeah that's ok" and just send it off.
Please don't think I'm be-littling accountants far from it, I just don't really understand the ins and outs of what's what. That's why I want to find out - before I even contact an accountant. I have a phone number for one, I just want to find out a bit before hand to make sure what's what.
Gcol
Thermo, it's not so much the fact that I want to save money. I feel that my requirements are very basic and I find it hard to understand whether I actually need an accountant. Hence the book, to see what sort of things I need to look at.
I buy equipment, do jobs for people, get paid and that's it. Yeah I have a van and tools, diesel etc. What I don't want to happen is for me to do my books, give all the stuff to the accountant and for them to say "yeah that's ok" and just send it off.
Please don't think I'm be-littling accountants far from it, I just don't really understand the ins and outs of what's what. That's why I want to find out - before I even contact an accountant. I have a phone number for one, I just want to find out a bit before hand to make sure what's what.
Gcol
B
breezer
my 2p worth.
It sounds like a good idea to do the books your self, in reality it isn't.
You have to be aware of what the taxman wants, how he wants it and lots of things like that, also you will loose time in doing your own books, get it wrong and i believe you can get a fine.
As the others have said, it will cost you for an acountant, but it will save you money, they will also save you money in the long run.
when i first started i kept my own "books" to show acountant, all is well, I gave up after my first visit because he still has o check everything, so why do the same thing twice? all i do now is to keep recipts in one folder and invoices in the other, (more folders as required) then take the whole lot to the acountant, believe it or not he likes it that way.
In short get an acountant as they will save you money as he really is on your side, dont forget he wants repeat business so if you are happy you will come back and also may refer your friends
It sounds like a good idea to do the books your self, in reality it isn't.
You have to be aware of what the taxman wants, how he wants it and lots of things like that, also you will loose time in doing your own books, get it wrong and i believe you can get a fine.
As the others have said, it will cost you for an acountant, but it will save you money, they will also save you money in the long run.
when i first started i kept my own "books" to show acountant, all is well, I gave up after my first visit because he still has o check everything, so why do the same thing twice? all i do now is to keep recipts in one folder and invoices in the other, (more folders as required) then take the whole lot to the acountant, believe it or not he likes it that way.
In short get an acountant as they will save you money as he really is on your side, dont forget he wants repeat business so if you are happy you will come back and also may refer your friends
The general consensous is that I should just get an accountant and have done with it. I can understand that they can save you money, but surely the ability to do so deminishes with the simplicity of the business? - The more straight forward the business the fewer the loopholes they can exploit and tricks they can pull.
Can anyone give me one example of an area that an accountant can save you money in a very basic business? Something that wouldn't be obvious to an ordinary mush on the street.
My dad has a sucessful jewellers business (you may have seen him on Crimewatch last year getting attacked by 3 chaps with machettes...but anyway) and he does his own books and sends them to his accountant to check. The only time he calls my dad is to check a small error in figures, but it's usually only a few pounds out. Many times my dad has mentioned that he doesn't think that his accountant is saving him any more than the fee he charges.
Can anyone give me one example of an area that an accountant can save you money in a very basic business? Something that wouldn't be obvious to an ordinary mush on the street.
My dad has a sucessful jewellers business (you may have seen him on Crimewatch last year getting attacked by 3 chaps with machettes...but anyway) and he does his own books and sends them to his accountant to check. The only time he calls my dad is to check a small error in figures, but it's usually only a few pounds out. Many times my dad has mentioned that he doesn't think that his accountant is saving him any more than the fee he charges.
All accountants are not the same. I have been through 4 before I found one I trust to save me money. There are indeed areas where they can save you money that you will not know about. Apart from obvious ones like including a proportion of your household expenses (do you know what you can claim for this, I don't), they should advise you on the best way to use your mileage claim, what to put through as capital expenses and why, the new rules on IT equipment (put your pc through the books and I think you can write it off in the first year, I'm sure someone else will know more about this than me). He or she should be able to come up with a few things you have not thought of.
If you use a prog like Sage, you enter all your expenses as different categories according to different accounting issues; it's not hard. Then there is less work for the accountant to do at the end of the year as they only have to check your figures rather than entering everything anew. A good one will correct any mistakes you have made.
I agree with the others that you should not do your own end-of-year accounts.
Ask around for recommendations before you pick an accountant. They vary in price and expertise.
If you use a prog like Sage, you enter all your expenses as different categories according to different accounting issues; it's not hard. Then there is less work for the accountant to do at the end of the year as they only have to check your figures rather than entering everything anew. A good one will correct any mistakes you have made.
I agree with the others that you should not do your own end-of-year accounts.
Ask around for recommendations before you pick an accountant. They vary in price and expertise.
C
confidentincompetent
Hi Gycol. I was in same frame of mind as you 20 odd years ago, but soon realised all suggestions above regarding capital tools, motor depreciation etc etc were a bit above me, I'm a very modest sole trader no vat, I do my own books but give them to accountant who also does my tax return and think the £320. for last year was ok. Peace of mind.
Good luck
Good luck
ive had the same accountant for 9 years and for £290 ayear its well worth it. my first year i would put everything in a draw letters aswell and they would pile up and add extra pressure. ive always got something back and ive got a number of friends who also went with him . one tryed to do it himself because he was told it was easy and he thought £290 was expensive, it ended up costing him £1000 thats because he went down to the tax office for help filling in the forms and was told he couldnt claim for half the stuff the accountant was claiming for me, he soon went running back. i was also able to get copies of vouchers from years ago for a claim i was making,no probs. they chase up any vouchers im owed and its sometimes easier especially if youve fell out with them. only a phone call away for any advise and beleive me its sometimes needed. also ideal for references or proof of selfemployment.
Something else just occorred to me; tax law changes periodically and if you were to make full use of your allowances you would have to keep up with all the new legislation each year. Youe accountant is paid to do this for you.
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