Running month to month in a nutshell

[MarillionFan]

"Why pay a company to do this when you can just do it yourself"

Cause it's a pain in the arse. £1000 a year for an accountant who will do your accounts as well.

[Gonzo]

Well done for putting more research into this than a lot of the newbies.

However there are a number of mistakes which show why an accountant is needed.

Most glaring (but there are others) is that the percentage tax credit that the shareholders receive is not the same as the percentage corporation tax that the company pays.

I don't think that using an accountant is the risk that some suggest, providing that you don't use one of the "previously an msc provider now an accountant" accountants.

[Sockpuppet]

For example, if I do 200 business miles at £0.40p per mile giving £80 expenses, this is just transferred straight from the business account to my own personal account through online banking or by cheque?

Write yourself a cheque for £80. Pay it into your account.

Record it somewhere. In sage I'd record it under overheads (i created another nominal code).

As to why some people do thier own accounts. I have an accountant but do all the paperwork myself. I spent 3 years studying accountancy at Uni so I may as well put some of that to use.

[MarillionFan]

Write yourself a cheque for £80. Pay it into your account.

Record it somewhere. In sage I'd record it under overheads (i created another nominal code).

As to why some people do thier own accounts. I have an accountant but do all the paperwork myself. I spent 3 years studying accountancy at Uni so I may as well put some of that to use.

I thought it was brain surgery.

[chris79]

Write yourself a cheque for £80. Pay it into your account.

Record it somewhere. In sage I'd record it under overheads (i created another nominal code).

As to why some people do thier own accounts. I have an accountant but do all the paperwork myself. I spent 3 years studying accountancy at Uni so I may as well put some of that to use.

Am I right in thinking I need to obtain a dispensation from HMRC to claim mileage etc? I plan on doing this, but just another daft question, why write a cheque, is it not easier to just use online banking to transfer the money?

[Vito]

I've never looked into MSC's...but the thought that people should be scared of using an accountant is absurd...I know builders, pub landlords, financial advisors and garage owners...all of them genuine companies...and all of them rely heavily on their accountant.

Could anyone on here with an in-depth knowledge of both accountancy, MSC's and tax regs explain the key differences between MSC's and Accountants so that maybe some of the fear for people on this board can be eradicated.

I'm all for people doing their own accounts if they are capable and have a desire and aptitude for such things...but if it is out of a fear that is not valid and could end up with them getting in a mess then thats not so good.

[Sockpuppet]

I know builders, pub landlords, financial advisors and garage owners...all of them genuine companies...and all of them rely heavily on their accountant.

All of them with more complex businesses than an contractor who recieves maybe a min of 12 invoices a year and if on the FRS VAT scheme not keeping any reciepts.

Could anyone on here with an in-depth knowledge of both accountancy, MSC's and tax regs explain the key differences between MSC's and Accountants so that maybe some of the fear for people on this board can be eradicated.

MSCs were for lazy people who wanted to sit in the same cushy dev job at an investment bank for 5 years pretending that they were somehow taking a risk and providing the economy with a flexible talented workforce therefore somehow entitled to the tax relief business owners get.

[Sockpuppet]

I'd be suprised if my accountant knew enough about accounting to offer promtiong and facilitating advice


j/k

[MarillionFan]

I'd be suprised if my accountant knew enough about accounting to offer promtiong and facilitating advice


j/k

[chicane]

I'd never try doing the accounts myself, because:

a) The accountant specialises in doing accounts, and can work on this task much more quickly, accurately and efficiently that I can. The time saved is time that I can spend making money using my specialist skill.
b) The accountant can use his/her knowledge and experience to look at various ways to work with legislation whilst compiling the accounts, potentially saving hundreds or even thousands of pounds compared to a "vanilla" approach gained by following the book to the letter.

In essence, I'd much prefer my accounts to be done by somebody who is concentrated on doing it in the best way for my business (accountant), rather than struggling to do it at all (me).