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Contracting - Accounts in a mess. Do i need a bookkeeper?

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    #11
    Boring but stop neglecting accounts and start keeping proper records, even if it's only simple spreadsheets. An accountant can only do as good a job as the information provided.
    bloggoth

    If everything isn't black and white, I say, 'Why the hell not?'
    John Wayne (My guru, not to be confused with my beloved prophet Jeremy Clarkson)

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      #12
      Originally posted by ladymuck View Post

      I'm annoyed on your behalf that your accountant seems to have a head in the sand attitude. They are probably right, it will all work itself out. However, what (I am assuming) you want right now is a bit of hand holding and guidance and being told the details so you have a clear idea what's going on.
      I am guessing the accountant means/plans to do is to simply "do the accounts" at some point after year end when they have all your bank statements etc, which will involve classifying lots of "withdrawals" as dividends, and then telling you how much you owe in personal tax.

      You'll need to be much more forceful to get them to do anything else.

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        #13
        Originally posted by jmo21 View Post
        I am guessing the accountant means/plans to do is to simply "do the accounts" at some point after year end when they have all your bank statements etc, which will involve classifying lots of "withdrawals" as dividends, and then telling you how much you owe in personal tax.

        You'll need to be much more forceful to get them to do anything else.
        Having had experience of a one man band with a very hands off I'd have guessed exactly this. My last guy had no spreadsheets or anything. He advised how much to take which I kept to thankfully and he appeared just to magic the numbers up at the end of the year.

        If an accountant is working like this then he can't stop the OP spunking his money away. Even now with my accountant checking quarterly I could still get in to some horrible trouble for 3 months without them knowing. Deffo got the wrong service from his accountant but even with the right one clients can still get themselves in a mess.
        'CUK forum personality of 2011 - Winner - Yes really!!!!

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          #14
          Doesn't sound that serious if the baliffs aren't knocking on your door. Basically let the accountant sort it out at year end. Usually there is no corporate tax owing so, just need to declare withdrawn funds as divis and then it's just a matter of working out your personal tax liability. If you have a permie job should be able to pay it.
          I'm alright Jack

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            #15
            Originally posted by BlasterBates View Post
            Doesn't sound that serious if the baliffs aren't knocking on your door. Basically let the accountant sort it out at year end. Usually there is no corporate tax owing so, just need to declare withdrawn funds as divis and then it's just a matter of working out your personal tax liability. If you have a permie job should be able to pay it.
            This is pretty terrible advice all round.

            Bailiffs knocking on the door is not the point at which you should get your tulip in order.

            "Usually there is no corporate tax owing so, just need to declare withdrawn funds as divis and then it's just a matter of working out your personal tax liability" makes absolutely no sense. If you're paying dividends, there needs to be profit, so there will be corporation tax owing.

            "If you have a permie job should be able to pay it" - You have no idea what he will owe, what this permie job will be paying or what the his personal expenditure is. How on earth can you say that he'll be able to pay it.

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              #16
              Originally posted by northernladuk View Post
              Having had experience of a one man band with a very hands off I'd have guessed exactly this. My last guy had no spreadsheets or anything. He advised how much to take which I kept to thankfully and he appeared just to magic the numbers up at the end of the year.

              If an accountant is working like this then he can't stop the OP spunking his money away. Even now with my accountant checking quarterly I could still get in to some horrible trouble for 3 months without them knowing. Deffo got the wrong service from his accountant but even with the right one clients can still get themselves in a mess.
              To be honest, my accountant is much like this, but I know (pretty much) what I'm doing withdrawal-wise all the time, so not been an issue.

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                #17
                Originally posted by BlasterBates View Post
                Doesn't sound that serious if the baliffs aren't knocking on your door. Basically let the accountant sort it out at year end. Usually there is no corporate tax owing so, just need to declare withdrawn funds as divis and then it's just a matter of working out your personal tax liability. If you have a permie job should be able to pay it.
                Stupid advice.

                OP ask the accountant if they have a bookkeeper or office junior who can do your bookkeeping for you. Yes you will have to pay but it's better than being in this complete mess.

                You will need to provide them with your bank statements, any receipts you have got business costs and any travel logs.
                "You’re just a bad memory who doesn’t know when to go away" JR

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