accountants

[smurfyy2k3]

im looking at starting up in the new year, and so far i've just been doing loads and loads of research

every where i look the best piece of advice i see is "get an accountant", but just how much do they cover? everything i've read has said that they work out all your tax, ni contributions, payroll and vat. but when i'm first starting out, how much help will they offer. is it worth getting an accountant from the offset or waiting a few months?

will the accountants deal with registering the business or is that something i will be doing. once i ring an accountant what kind of information will i need to provide them with?

thanks

 

[Martyn]

Are you in the UK? Basically get an accountant before you start off he will advise you on all aspects of working for yourself. Things like whether to go Sole Trader. Limited Company etc. He will advise you on your vehicle whether to claim mileage or for the car itself. Just phone one up and go and have a chat.

 

[smurfyy2k3]

yeah im in the uk. i have a few numbers for local accountants, im just wondering what services i should be looking for. or is it pretty standard across the board?

 

[Martyn]

Phone one up and have a chat, it's free normally. He will organise(or tell you) what to do about registering yourself for NI payments and how to keep records. I log everything in an excel sheet with several tabs, it's basic but does what I need and more important what he needs. My accountant said the more i do the less he does and the cheaper it is for me. As I said have a chat.

 

[Cambridge PC Support]

yep, bowling up with a coupla carriers bags of receipts on Jan 27th is bound to bump your bill up!

 

[Martyn]

yep, bowling up with a coupla carriers bags of receipts on Jan 27th is bound to bump your bill up!

Yes I just number each receipt, log it in excel and put it in a box file. Same with invoices and purchases.

 

[K007]

Get an accountant from the company that is registering your business.
You can create a business online and it doesn't cost much, moreover you get it done in 4 hours.
Almost all the ones who do register new businesses online do offer accounting services.
If you opt-in, ensure they are "chartered accountants". It's a bit more expensive but a "good accountant is worth his weight in gold"
Before you register the business with them, ask for a free one hour consultancy where you get the most useful information for a smooth start-up and first annual return. The "Firsts" are the hardest, and if you get the right advice will be a lot easier.
Unlike in other countries, the UK does not publicize the ins and outs of Accounting and Legal professions. I suppose is still a middle-upper class monopoly. You either pay an accountant or you risk a bumpy ride. And HM Revenue is not at all forgiving, especially in the current economic climate.

 

[K007]

Get an accountant from the company that is registering your business.
You can create a business online and it doesn't cost much, moreover you get it done in 4 hours.
Almost all the ones who do register new businesses online do offer accounting services.
If you opt-in, ensure they are "chartered accountants". It's a bit more expensive but a "good accountant is worth his weight in gold"
Before you register the business with them, ask for a free one hour consultancy where you get the most useful information for a smooth start-up and first annual return. The "Firsts" are the hardest, and if you get the right advice will be a lot easier.
Unlike in other countries, the UK does not publicize the ins and outs of Accounting and Legal professions. I suppose is still a middle-upper class monopoly. You either pay an accountant or you risk a bumpy ride. And HM Revenue is not at all forgiving, especially in the current economic climate.

Edit:
From my experience, I have registered the company in July but reported the first month of commercial activity in September, because that was when the first sales started.
Biiiiig mistake.
Why, because all the expenses incurred in July and August I could not claim them back, as the accounting period started in September.
If I did what they told me "Take an accountant now" I would have saved a couple of thousand pounds.

 

[Martyn]

Edit:
From my experience, I have registered the company in July but reported the first month of commercial activity in September, because that was when the first sales started.
Biiiiig mistake.
Why, because all the expenses incurred in July and August I could not claim them back, as the accounting period started in September.
If I did what they told me "Take an accountant now" I would have saved a couple of thousand pounds.

Are you sure about that because my accountant says I can claim all that leading up to it as a 'startup costs'? In fact I bought my company car off my old company back in March and he's claiming ffor that. I did that also about 10 years ago starting up a company, I could claim stuff well before the official start date. He's a chartered accountant as well.

 

[K007]

Are you sure about that because my accountant says I can claim all that leading up to it as a 'startup costs'? In fact I bought my company car off my old company back in March and he's claiming ffor that. I did that also about 10 years ago starting up a company, I could claim stuff well before the official start date. He's a chartered accountant as well.

I didn't have an accountant so I didn't know. After that I didn't even bother about trying to recup the start-up costs. I put them as starting capital.First and second annual return I did them by myself including the directors' report. But when it started to get complicated I had to get advice. Just advice, not a paid accountant. I still do my own accounts.

 

[Martyn]

I didn't have an accountant so I didn't know. After that I didn't even bother about trying to recup the start-up costs. I put them as starting capital.First and second annual return I did them by myself including the directors' report. But when it started to get complicated I had to get advice. Just advice, not a paid accountant. I still do my own accounts.

You're almost certainly missing out by not having one. An accountant will always save you more money than he/she costs.

 

[K007]

You're almost certainly missing out by not having one. An accountant will always save you more money than he/she costs.

I know. My problem is that I like sticking my nose in everything. I did some accountancy way back in college and even did the bookkeeping when I was working as a manager back in the late 80's. Although in principle I hate it, it does have it's own rewards. Somewhat gives you that feeling of power, knowing you are actually in control and nothing moves without you understanding how or why.