total newbie - accounting costs

[cjonline]

Hi,
I've read a lot of discussion on here regarding the costs of Accountancy services.

As a total newbie can someone please tell me does it really matter about the cost as this expense is deducted from your corporation tax...?? am I correct in thinking that?

regards,
Craig.

[LondonManc]

Profits = Revenue - Cost
Then you're taxed on your profits.

If your costs are higher there's less to tax but similarly there's less net profit.
If revenue is 10,000 and costs are 1,000, you're taxed on 9k
If revenue is 10,000 and costs are 2,000, you're taxed on 8k
Would you rather take 9k less 20% home or 8k less 20%?

[TykeMerc]

Hi,
I've read a lot of discussion on here regarding the costs of Accountancy services.

As a total newbie can someone please tell me does it really matter about the cost as this expense is deducted from your corporation tax...?? am I correct in thinking that?

regards,
Craig.

It matters a bit, yes it's a deductible expense in Corporation Tax terms, but it's still money that has to be earned from a client in the first place.

The major factor when it comes to your accountancy service cost is value for money, do they provide good advice and service in line with their fees. I can say that while they're not perfect (no provider can be) I feel that I've had good service for the fees I've paid to Nixon Williams over the years, I'm certain many others will say the same about the accountants they use.

[northernladuk]

Hi,
I've read a lot of discussion on here regarding the costs of Accountancy services.

As a total newbie can someone please tell me does it really matter about the cost as this expense is deducted from your corporation tax...?? am I correct in thinking that?

regards,
Craig.

Get an accountant and ask them...

[MrMarkyMark]

Get an accountant and ask them...

Maybe it may work out cheaper for him to........read the first timer guides

[Fred Bloggs]

Just my experience, but never listen to anyone who recommends you pay more a month because the accountant will more than pay for himself. They won't and they can't. As a contractor your business is so simple that there is no scope to legally reduce your outgoings (taxes, typically). Just get yourself a reliable accountant at a reasonable cost that you're happy with. Plenty on here. I think you should look to pay at most £90 + VAT for the usual contractor service. Any more and IMO you're being shafted.

[cjonline]

Just my experience, but never listen to anyone who recommends you pay more a month because the accountant will more than pay for himself. They won't and they can't. As a contractor your business is so simple that there is no scope to legally reduce your outgoings (taxes, typically). Just get yourself a reliable accountant at a reasonable cost that you're happy with. Plenty on here. I think you should look to pay at most £90 + VAT for the usual contractor service. Any more and IMO you're being shafted.

I'm paying £150 + vat a month.. I wanted the full package so I didnt need to do much.. I think for most first timers the issue is so much conflicting advice and I havent yet found a definitive list of what I require to do if I wanted to do the accounting myself.

what type of accountancy package do folk recommend? full/mid/minimum?

[MrMarkyMark]

does it really matter about the cost as this expense is deducted from your corporation tax...?? am I correct in thinking that?

I havent yet found a definitive list of what I require to do if I wanted to do the accounting myself.

Maybe the best advice would be, don't run, before you can walk.

HTH.

[northernladuk]

I'm paying £150 + vat a month.. I wanted the full package so I didnt need to do much.. I think for most first timers the issue is so much conflicting advice and I havent yet found a definitive list of what I require to do if I wanted to do the accounting myself.

This doesn't make sense. You want the full package but you want to do it yourself. The fact you need a full package would indicate you are best off not doing it yourself.

I'd also say if you need a list of stuff to do it yourself then you are clearly not ready. There is no definitive list, particularly when it comes to keeping up with legislation and rules. You can't do this type of stuff of a checklist. The biggest problem is not knowing what you don't know. List won't fix this.

150 is a lot but trying to save that to risk screwing yourself big time is not good worthwhile.

what type of accountancy package do folk recommend? full/mid/minimum?

How long is a piece of string. Depends on the capability of the person asking.

[cjonline]

What I meant is that I wanted the full package at first until I learned what is required for the company then try do more myself.

I suppose what I'm really asking is that is £150+vat a rip off .. should I look elsewhere? I've looked on these forums and seen mixed advice on who to go to for accountancy. I suppose what I'm looking for is the maximum amount of work/advice offloaded to accountant for the minimum of spend.