Paperwork & finances not in order. How to?

[Slumdog]

Perhaps I have been misguided or mis-informed. I probably didnt know the questions to ask my accountant or the help that I would need when I initially started contracting in 2009.

I have all my invoices that I bill the agency for. I have all wage slips of when I have paid myself. I have P/L documents stating how much dividends that I can take and I have paid all relevant taxes to HMRC.


During this period also I have taken some directors loans. Out of my dividend allocation I have withdrawn some, not all dividends(but intend to take the full amount very soon).

Basically I want to get the business bank account in line with all my paperwork. (There may even be funds in the business account which I am entitled to).

Is this mis-alignmnet common and how can I correct this? so that everything is 100% as it should be. Is there some outside assistance that I can get?

[Old Greg]

Perhaps I have been misguided or mis-informed. I probably didnt know the questions to ask my accountant or the help that I would need when I initially started contracting in 2009.

I have all my invoices that I bill the agency for. I have all wage slips of when I have paid myself. I have P/L documents stating how much dividends that I can take and I have paid all relevant taxes to HMRC.


During this period also I have taken some directors loans. Out of my dividend allocation I have withdrawn some, not all dividends(but intend to take the full amount very soon).

Basically I want to get the business bank account in line with all my paperwork. (There may even be funds in the business account which I am entitled to).

Is this mis-alignmnet common and how can I correct this? so that everything is 100% as it should be. Is there some outside assistance that I can get?

Do you have an accountant?

[Slumdog]

Do you have an accountant?

Yes. (Although I changed to another one in May 2010)

[prozak]

invest in some accounting software.

enter data one piece at a time.

By the end of it you should be able to see what your accounts look like.

Don't forget to start a new year at appropriate times.

[Wanderer]

It doesn't sound like too much of a mess, you just need some advice on what to declare as divis or loans as appropriate. Can you not lob it all over to the accountant to balance up for you and then keep on top of things from there on.

[matzie]

Check out FreeAgentCentral, a web-based bookkeeping application which gives me total peace-of-mind for my business record-keeping. It also takes care of my invoices, bank reconciliation (so I'm never in the same boat you're in) and works out VAT, CT, dividends... PAYE support is its weakest element but it's still sufficient. It's the *only* web app I've ever even considered paying for... and now, I wouldn't ever consider being in business without it.

Here's a referral link that will get you (and I) 10% off:</mod>No you don't</mod>

Couple this with a brilliant iPhone app called "Out of Pocket" which I use to enter expenses on the fly (and take a photo of the receipt, which I then file safely, later my wife attaches a unique reference number (stapling a raffle ticket to it!) and then enter that number into FreeAgent - but that's just my belt-and-braces attititude, and helps justify her salary) and you have a very flexible system for managing a contracting business..,.

One things for sure, you shouldn't leave your biz in its current state. HMRC sometimes do "real time records checks" intended to ensure that accurate and contemporaneous records are maintained.

[Sockpuppet]

Get a bookeeper. Cheaper than an accountant and will do the bulk of the filing.

Then send to an accountant for analysis.

[northernladuk]

When I first started I had an accountant that didn't really do much in the year to help and then waded through a mess at the end. To be fair I didn't really understand it all so go in a mess it sounds like the OP is in.

I joined SJD and they give a very comprehensive spreadsheet that tracks everything. I think is the dogs danglies! Tells me everything I need to know and multiple checks against everything and at the bottom the number of what should be in my bank. If they don't tie up I know where to check and Bob's your uncle. Takes couple of mins a day maybe and thats only if I have something to add to it.

I haven't seen other financial systems and I am sure they are very nice prompting you put stuff in and then pop it out but can't beat putting numbers in a huge spreadsheet and the instant output of how Corp Tax, VAT i have to pay, Divis I can paymyself, how much I am due but haven't divi'd.

It's fabulous.

Only thing is when I put the accountancy charges in it suddenly dawns on me I have just done all the work filling the spreadsheet in, how come they charge me so much but lets not go there again

p.s. I do not work for or take comission for SJD. I am also unfortuantely not sleeping with any of their staff either. Just my honest 2 pennth's worth.

p.p.s As I say I haven't seen any other systems so this might be old and archaic but I like it!

[philip@wellwoodhoyle]

I haven't seen other financial systems and I am sure they are very nice prompting you put stuff in and then pop it out but can't beat putting numbers in a huge spreadsheet and the instant output of how Corp Tax, VAT i have to pay, Divis I can paymyself, how much I am due but haven't divi'd.

Which is exactly what www.freeagentcentral.co.uk does without the hassle and risk of the common spreadsheet mistakes and having to manually keep up with changes to legislation etc. nor being locked into a particular accountancy firm.

[SueEllen]

Which is exactly what www.freeagentcentral.co.uk does without the hassle and risk of the common spreadsheet mistakes and having to manually keep up with changes to legislation etc. nor being locked into a particular accountancy firm.

But then you are locked into subscription accounting software instead.