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  1. #11

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    Quote Originally Posted by Fred Bloggs View Post
    And also why FreeAgent is becoming the tool of choice.
    I stumbled across someone ("cheap accounting") offering to do IT contractor annual accounts for 150+VAT (if you use FreeAgent or similar), or 400 if not. Then again if FreeAgent can produce a profit and loss account I don't know why it's necessary to pay anyone.

    I'm sure NLUK's head is exploding at this suggestion.
    Will work inside IR35. Or for food.

  2. #12

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    Quote Originally Posted by VectraMan View Post
    I stumbled across someone ("cheap accounting") offering to do IT contractor annual accounts for 150+VAT (if you use FreeAgent or similar), or 400 if not. Then again if FreeAgent can produce a profit and loss account I don't know why it's necessary to pay anyone.

    I'm sure NLUK's head is exploding at this suggestion.
    As I understand it, and could be wrong, all the information is there and calculated. But (I guess due to pressure from accountancy practises) it stops at producing the yearly accounts. If FA did that, then I'd agree, little need for an accountant.

  3. #13

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    Quote Originally Posted by Fred Bloggs View Post
    As I understand it, and could be wrong, all the information is there and calculated. But (I guess due to pressure from accountancy practises) it stops at producing the yearly accounts. If FA did that, then I'd agree, little need for an accountant.
    Probably. FreeAgent is not so free; 30pm for a book keeping service which might only have a few entries per month for the typical contractor seems a bit of a rip off too. If they took the logical step of doing annual accounts and CT I'd certainly sign up.
    Will work inside IR35. Or for food.

  4. #14

    More time posting than coding


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    Quote Originally Posted by Fred Bloggs View Post
    As I understand it, and could be wrong, all the information is there and calculated. But (I guess due to pressure from accountancy practises) it stops at producing the yearly accounts. If FA did that, then I'd agree, little need for an accountant.
    Personally I don't think it will be too long until you will be able to file basic accounts via Freeagent if you wanted to (probably just micro entity accounts but that will probably suit most contractors). I would also imagine that if/when quarterly tax accounts become reality that the use of Freeagent and other software packages will spiral massively and almost all contractors will be using one.

    Does that then mean it's the end of the typical contractor accountant, I believe not as I think there is still a lot of value added by using an accountant for most contractors. Yes there will be plenty who will do it themselves, there already are and always will be, but I think most will still use an accountant even if it is just for reassurance and a bit of tax planning a couple of times a year.

    Does it mean accountancy fees will come down, for some yes as there are far less barriers to entry then they use to be given the great software packages out there so the competition should increase. Personally, I think some of the bigger firms will find margins falling with the smaller firms still able to maintain margins whilst excelling on the personal service/value added side of things.

    I'm sure plenty will disagree but for the sake of a couple of days billing the comfort of having a good accountant at the end of the phone/email makes sense to most, doesn't it?

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    Contratax Ltd

  5. #15

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    Quote Originally Posted by VectraMan View Post
    I'm sure NLUK's head is exploding at this suggestion.
    But.. But who can I ask??
    'CUK forum personality of 2011' - Winner - Yes really!!!!

  6. #16

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    Quote Originally Posted by northernladuk View Post
    But.. But who can I ask??
    Suity
    The greatest trick the devil ever pulled was convincing the world that he didn't exist

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    Quote Originally Posted by VectraMan View Post
    Probably. FreeAgent is not so free; 30pm for a book keeping service which might only have a few entries per month for the typical contractor seems a bit of a rip off too. If they took the logical step of doing annual accounts and CT I'd certainly sign up.
    "Free" as in freelance. Not "Free" as in no charges. For my minimal outlay each month, being able to email an accountant and get a reply in an hour or two is worth what I pay. And as they do the self assessment and company annual accounts, it's a bit of a bargain, IMO.

  8. #18

    Contractor Among Contractors

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    Quote Originally Posted by SimonMac View Post
    I am guessing it is SJD, i would be very careful with using the term "royally ripped off" as there are plenty of customers who are happy to pay this amount, I pay zero in accountancy fees so I think FreeAgent @ 60 a month is too much, but then again I know that my cover is limited in case things go tits up.
    Sounds like SJD. I use them. If I was starting again I'd use another firm but as I cannot complain about the service, and cannot see that c. 70 a month is good reason to go through the pain of changing I'll stay.
    That notwithstanding they are only one bad service incident away from me leaving for that reason.

  9. #19

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    Quote Originally Posted by VectraMan View Post
    Probably. FreeAgent is not so free; 30pm for a book keeping service which might only have a few entries per month for the typical contractor seems a bit of a rip off too. If they took the logical step of doing annual accounts and CT I'd certainly sign up.
    It's definitely on their "to do" list, don't think that's a secret...it's just a relatively complex task so not something a couple of developers can knock up in a few days.

    There used to be a big divide between "bookkeeping software" and "accounting/tax software", with only accountancy firms traditionally having the latter, due to it being very complex and often expensive. These two are increasingly blurring, with VAT and payroll being an inbuilt part of many bookkeeping packages these days, some also doing self assessment, and within a few years I'm sure a few will offer statutory accounts and corporation tax too, at least for fairly straight forward small businesses.

    However, I agree with Martin @Contratax. As with so many things in this world, just because you can DIY (which people have been perfectly able to for yonks) doesn't mean everybody will, or indeed should.

  10. #20

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    Quote Originally Posted by LondonManc View Post
    Suity
    Take my money!!!!
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