Accountant Problems

[Nixon Williams]

I don't know if your client is paying you for a book keeping service but I feel that reconciling the companies books against the bank statement is an absolutely fundamental task of a book keeper.

Every penny of every single payment into and out of my companies bank accountant is reconciled against my accounting spreadsheet every month (not just at the end of the year) so profits and dividends can be calculated. If this is done correctly then the balance on the bank statement exactly matches the balance shown in the company's books. If the balances don't match then the book keeper should be seeking an explanation of the unexplained transaction so it can be properly entered into the company accounts. Simply shrugging and saying, "I don't know what that transaction was so I'll ignore it" or blaming the client for not notifying them of the transaction in the "right" way isn't helpful. It causes unnecessary stress and potentially costs the client money in tax that they could have avoided paying.

The other point is that a large number of contractors who are potentially higher rate tax payers should be clearly advised when they were approaching the limit of salary/dividends that will put them into the higher rate tax band so they can engage in some tax planning if that is their desire. I don't think a good accountant should let the client blindly stray into the higher rate tax band without warning them first and giving them a final reminder just before they hit the higher rate tax.

We do reconcile all the transactions going through our clients accounting records and we do request explanations of anything that is not clear.

I would say that we are one of the few accountants that does this. From our experience of taking on new clients from other accountants, it is very rare to have all the accounts reconciled.

If you want to check that your accountant is doing this, simply ask them for a full reconciliation of the Director's Account - 90%of the time, this is not done!

Alan

[Support Monkey]

If I were an expert in accounting I wouldn't be paying someone over a grand a year to do it for me.

Remember this is an all inclusive service as below. No mention of estimates or doing it yourself too.


For just £95 plus VAT per month we offer the following on our Premier Service:

Set Up

Form a Limited company at Companies House or set up your business.
Register your business for PAYE.
Register your business for VAT.
Register your business for Corporation Tax or Business Tax.
Register your business for the VAT Flat Rate Scheme.
Assist with opening a Cater Allen Bank or HSBC account.
Monthly

Operate your payroll with payslips for each employee.
Calculate and issue profit statement for your business.
Quarterly

Calculation & advice of VAT returns & payments.
Calculation & advice of PAYE payments.
Annually

Issue and file P14's/P60 & P35 with HMRC.
Issue and file P11d & P11d(b) with HMRC.
Calculate and advise of Class 1A NIC payments.
Prepare & file annual accounts with HMRC.
Prepare & file Corporation Tax return (CT600) with HMRC.
Prepare accounts for Companies House.
Prepare Companies House Annual Return (AR01).
Personal Tax Return for one director, if received by 30th September after the end of the tax year. A small charge may apply if you join part way through the tax year.
As When

Dedicated Account Controller including their direct phone number & email address.
Unlimited telephone & email support.
Ongoing book-keeping.
Produce dividend vouchers and board minutes.
Deal with any general HMRC correspondence and queries.
Advise Companies House of company changes.
Deal with change of address for the company and director.
Mortgage, tenancy & VISA references.
Complete National Statistical Office questionnaires.
Deal with HMRC investigations were we have done the work, provided you have followed our advice and/or not concealed anything from us.
If you decide to cease using our services, your only commitment is to give us one month's notice.
If you choose to move to another accountant, we do not make a charge for the transfer.
Your obligations to us:

Send us copies of your invoices.
Send us your expense claim form.
Send us a copy of your business bank statements.
Respond to letters and emails from us.
Pay our fees each month.

YES!! we all know what they offer but at the end of the day whether your paying for the service or not it still comes down to you being in control, its your company, do you know these people personally no so always air on the side of caution especially to start with and check the details yourself until trust is built, the same as any other business relationship

[psychocandy]

Do what Rodders?

Edited now cos it didnt make sense. Just pointing out that Kitty has blown £1400 in extra tax but that my accountant cost my company £1080 this year, thus making it worthwhile in my mind to pay for one.

[malvolio]

Edited now cos it didnt make sense. Just pointing out that Kitty has blown £1400 in extra tax but that my accountant cost my company £1080 this year, thus making it worthwhile in my mind to pay for one.

So you could summarise that by saying that a good accoutnant is effectively free.

Nah, it'll never catch on...

[Bexter]

I've just read this whole thread and I'm really glad I have. I have just recently left my previous accountant, primarily because there were so many 'small' mistakes in my accounts both at quarter end VAT time and year end (how they make errors in VAT calcs I'm not sure, it couldn't be simpler!), and have moved to NW. So far I've been very happy with them, and this thread confirms to me that they do put in the extra effort to get things right and ensure clients are happy.

I would agree that not many accountants do monthly summaries, my previous one certainly didn't, they also never gave me any advice on how much I could take out the company etc etc. And because of the regular errors ('missing' emails I sent them with corrections in, transposing numbers on invoices, excluding expenses that I have told them about by mistake, the list goes on!), I now monitor my accounts a lot more stringently as I am nervous of getting a large tax bill, but I think thats a good thing. As has been said, as a director, I am responsible for it being correct and you can't take that responsibility lightly and just hand it to your accountant.

And to put it in perspective, its £75 a month, which surely in terms of an accountants salary, is about 2 hrs work? And I'm sure NW do spend more than that per month on my accounts, when you add up the emails/queries/processing of invoices etc etc. So I think its quite good value for what it is really.

[KittyCat]

Edited now cos it didnt make sense. Just pointing out that Kitty has blown £1400 in extra tax but that my accountant cost my company £1080 this year, thus making it worthwhile in my mind to pay for one.

What makes you think I have blown £1400 in extra tax!?

Put it this way - if you know your income has exceeded the minimum threshold already why would you bother to register for PAYE? when there's no gain?

Its only this year it is'nt - hence registering for PAYE to take a one off directors fee.

[KittyCat]

Kitty - you certainly do have some 'interesting' ideas on things I must admit.

Not as interesting as some who join 'Investment Schemes' ahem by companies not registered to operate/fraudsters - then lose their money when the company goes under & have to scurry around for a new accountant!

Or pay an 'expert' & get shafted with a big tax bill.

How many posts are there on here with people unhappy with their accountants? At least if my accounts get fked up - its down to me - get a better nights sleep that way.

[prozak]

And to put it in perspective, its £75 a month, which surely in terms of an accountants salary, is about 2 hrs work?

More like 15 minutes.

I'm not an accountant and I do not spend more than 3-4 hours on my accounts, vat, payroll etc etc each year.

[prozak]

What makes you think I have blown £1400 in extra tax!?

Put it this way - if you know your income has exceeded the minimum threshold already why would you bother to register for PAYE? when there's no gain?

Its only this year it is'nt - hence registering for PAYE to take a one off directors fee.

Watchootalkinbout Kitty?

Your 7k salary comes off your company profit. Hence the 1400 a year saving in company tax. not personal tax.

So with better planning you could have:
1. Paid yourself 7k a year - saving 1400 in tax.
2. Planned your dividends better to not go over the 40% threshold (unless you required that money)

[Clare@InTouch]

Watchootalkinbout Kitty?

Your 7k salary comes off your company profit. Hence the 1400 a year saving in company tax. not personal tax.

So with better planning you could have:
1. Paid yourself 7k a year - saving 1400 in tax.
2. Planned your dividends better to not go over the 40% threshold (unless you required that money)

You also get credit for your state pension if you pay a small salary. Not worth much by the time you retire maybe, but why not have it if it doesn't cost you anything (and in fact saves you CT)?