Accountancy Software Package

[steve80]

Anyone use one rather than paying an accountant ?

[Maslins]

Anyone use one rather than paying an accountant ?

If you mean something like FreeAgent, many contractors use it AND an accountant.

Sure there are a fair few who DIY with just the software. Inevitably some will be reasonably experienced and do it absolutely fine, for others it will be a false economy, as they bodge everything up and start getting into trouble (though often not knowing they have problems until it's too late).

[tractor]

...

I use Xero and an accountant.

You really do need to have the final accounts produced by an accountant. It looks far more professional than DIY esp to the tax office and it ensures (as much as one can) that you don't miss the finer points of legislation introduced in the FA that you may otherwise miss and it also ensures (as much as one can) that your CT calculation will be correct along with any depreciation issues that you may have.

Using a package should reduce your accounts fees proportionately. You won't be any better off because of the monthly charges for s/w but at least you are in control.

There is no reason not to use the age old technology of one shoebox for receipts and one for revenue and pay twice as much to an accountant though.

[LisaContractorUmbrella]

Understanding an accounting software package is not the same as understanding accounts - might be an idea to keep an accountant on board until you have enough knowledge not to need one

[TheCyclingProgrammer]

Agree with the above. I use FreeAgent. Have done for nearly 6 years. Its excellent. I take particular care of my bookkeeping and strive to have a solid understanding of various principles of running a business, accountancy and taxation. My accountant has commented before about how good my books are and that he wishes all of his clients were as disciplined in maintaining their books.

Despite all that, I still pay my accountant a monthly fee for regular advice and just as importantly, to do my end of year accounts (FreeAgent can't do these and I wouldn't try and attempt them by hand either) and to do my corporation tax return (capital allowances still mystify me). My accountant accounts for some of the little things that FreeAgent doesn't handle perfectly, he sends me my final accounts, submits my return and accounts for me and I post a few journals to FreeAgent to account for any differences (deferred taxation, rounding etc.) so everything matches up.

All thats left for me to do is submit mine and my wife's very boring self-assessments (they are normally nil returns) and my annual return each year.