To use an accountant or do it myself?

[escapeUK]

The other advice I tell my clients is we're as expensive as you make us.

Just a thought, are SJD responsible for making a mistake in the accounts they prepare, or is the client? In other words do clients have to check your work?

[malvolio]

Just a thought, are SJD responsible for making a mistake in the accounts they prepare, or is the client? In other words do clients have to check your work?

If you're a director, it's totally your repsonsibility. That's kinda what being a director means. It's your company, your money and your court case. And your improved income for taking the risks, of course.

If your accountant make a mistake, then you will have some level of redress against them. But, obviously, you have to know they've made one - which is why I keep saying that you need to at least have a passing familiarity with corporate accounting.

[escapeUK]

If you're a director, it's totally your repsonsibility. That's kinda what being a director means. It's your company, your money and your court case. And your improved income for taking the risks, of course.

This is what I would suspect, but it defeats all the arguments from people saying I dont have the time, they know more about accounts than I ever will and so on.

If you have to know it well enough to check what the accountant has done as your are responsible, then really you might as well do it yourself. Its a strange profession really when you think about it, in what other trade would you hire an expert, expecting to check their work and being ultimately responsible if they cock up.

[malvolio]

This is what I would suspect, but it defeats all the arguments from people saying I dont have the time, they know more about accounts than I ever will and so on.

If you have to know it well enough to check what the accountant has done as your are responsible, then really you might as well do it yourself.

You don't have to repeat their work to check it. You only need be aware of stuff like FRS, depreciation of assets and basic payroll/dividend management at a high level if you want to be certain theyr'e doing the right things. If they get it wrong, those nice people at HMRC will very quickly tell you, one way or another.

Its a strange profession really when you think about it, in what other trade would you hire an expert, expecting to check their work and being ultimately responsible if they cock up.

All of them? It's called "being a Director of a limited company". Or haven't you read up on the relevant bits of the Companies Act?

[dmo]

Having contracted for a year, I would strongly recommend an accountant at least for the beginning. The paperwork isn't intuitive or guessable when it comes to doing your duties, and you have to know what you're doing. After a year or two you might want to change to a cheaper service provider, but always check the numbers and know what's going on with your accounts.

My accountants were great to begin with, however now I pay
£100+ per month and send just one file to them via email. They don't call me or email me with ideas ever.. So from that point of view they're not so great anymore. Maybe it's different elsewhere though...

[Old Greg]

Having contracted for a year, I would strongly recommend an accountant at least for the beginning. The paperwork isn't intuitive or guessable when it comes to doing your duties, and you have to know what you're doing. After a year or two you might want to change to a cheaper service provider, but always check the numbers and know what's going on with your accounts.

My accountants were great to begin with, however now I pay
£100+ per month and send just one file to them via email. They don't call me or email me with ideas ever.. So from that point of view they're not so great anymore. Maybe it's different elsewhere though...

Why don't you phone them and ask if they've got any ideas?

[northernladuk]

Having contracted for a year, I would strongly recommend an accountant at least for the beginning. The paperwork isn't intuitive or guessable when it comes to doing your duties, and you have to know what you're doing. After a year or two you might want to change to a cheaper service provider, but always check the numbers and know what's going on with your accounts.

My accountants were great to begin with, however now I pay
£100+ per month and send just one file to them via email. They don't call me or email me with ideas ever.. So from that point of view they're not so great anymore. Maybe it's different elsewhere though...

It isn't as simple as that, they will keep you on top current legislation and keep you at the current rates as they change. Do they not help you with VAT. They do not know your business, only you do that, they provide a service so you cannot rely on them for everthing. You need to strike up a relationship and keep in touch. Ask about stuff, ideas, areas that convern you and they will advise the best approach. That is about it. You pay 100 quid. How proactive for you clinet would you be for 100 a month?

[dmo]

It isn't as simple as that, they will keep you on top current legislation and keep you at the current rates as they change. Do they not help you with VAT.

That's why I pay them, for the extra accounting tasks, not just to add up two numbers and hit Print.

They do not know your business, only you do that, they provide a service so you cannot rely on them for everthing. You need to strike up a relationship and keep in touch. Ask about stuff, ideas, areas that convern you and they will advise the best approach. That is about it. You pay 100 quid. How proactive for you clinet would you be for 100 a month?

When my client pays me 100% of what I ask for I always make sure they're happy and follow up with them. And if I was to hike up my rate by 20% after a few months I'd definitely go the extra mile, even if it's for a short period. Just saying, it's about quality of service these days and added value. Everyone can do the bare minimum, and if you can't it takes looking on Google and a few YouTube videos until you can.

Ask about stuff, ideas, areas that convern you and they will advise the best approach.

Maybe I will. Although a client chasing the supplier/service provider is just p*** poor in my (limited) experience.

[northernladuk]

That's why I pay them, for the extra accounting tasks, not just to add up two numbers and hit Print.

But that is all you are going to get for £100 a month. Again you are over simplifying what they do, at first it was just one file, now it is VAT. I do understand what you say but I don't think you are being wholly fair. They are available to you any time you need which is a service and the rest.

When my client pays me 100% of what I ask for I always make sure they're happy and follow up with them. And if I was to hike up my rate by 20% after a few months I'd definitely go the extra mile, even if it's for a short period. Just saying, it's about quality of service these days and added value. Everyone can do the bare minimum, and if you can't it takes looking on Google and a few YouTube videos until you can.

Yet again missing the point. 100% of peanuts is still peanuts. It doesn't matter if it is 100% or 50%. It is 100 quid. I bill my client more than that for having dumps in a month and I am sure an accountants hourly rate is a lot more than mine!

Maybe I will. Although a client chasing the supplier/service provider is just p*** poor in my (limited) experience.

Which is because you are not understanding the relationship, the value and the expectation IMO.

[Danielsjdaccountancy]

Just a thought, are SJD responsible for making a mistake in the accounts they prepare, or is the client? In other words do clients have to check your work?

I encourage all clients to check our work.

We are only advisors and therefore responsibility falls on the director.

I try to give my clients the best advice possible so they understanding how their businesses are being run as this will help them to spot any potential mistakes. Remember you guys know your businesses better than anyone.