Doing your own payroll etc instead of an accountant.

[moggy]

Was just curious really.

It erks me that Agencies cream a few quid of contractors cash for doing very little.
So with that same train of thought, I started to think, about my accountancy fees.

And if it saves cash for my business then at the very least it's worth looking at the pro's & con's of doing it myself.

Accountants do cost money but will be a lot less than any mistake you make for yourself, also they will save you money which pays for their service.

Again with agencies, although we all like to bash them, but they find the work and in 99 cases out of a 100 will be paying you weeks if not months before a client would pay an invoice. The bigger the client the slower the payer i have always found with clients. If you don't like their margin, then as other posters have said before, your rate was poorly negotiated.

[northernladuk]

Well I guess a con is that you can get yourself in to an almighty mess and attract attention to yourself for a tax investigation which is normally (but very rarely it seems) the flag for an IR35 investigation.

Maybe a worst case 'con' but there you go.

[SimonMac]

I do everything my self, using DIY Accounting Software, Payroll Software, Tax Return, Company Formation UK but I might have to find a new solution once RTI comes into effect : tantrum:

[dmini]

I do everything my self, using DIY Accounting Software, Payroll Software, Tax Return, Company Formation UK but I might have to find a new solution once RTI comes into effect : tantrum:

Just looked at that link out of interest - I hope their software is better than their website. I spotted 4 mistakes without even trying.

I use SJD's spreadsheet, HMRC payroll at the moment (depending on RTI) and an accountant at end of year for end of year accounts and corporation tax check etc.

[simondolan]

I would be interested to know what the OP's motivation for this is?

Is it cost? You want to save the company £1200 or so a year or your pocket around £960? Take the cost of freeagent off this as well.

Is it to be more in control of the companies finances... which you should be anyway as you sign for it at the end of the day so you are already legally responsible for it so should be checking everything the the accountant does and directing him as you see fit. He is after all only providing a service...

Or is it because you want greater visibility of every transaction, expense item so you can account for every penny at any point in the year and report on it because your accountant doesn't provide decent tools to do this?

I have been tempted by freeagent from other posters comments but at the moment I find SJD's spreadsheet a godsend and am more than happy with it at the moment. The previous accountant I had didn't give me a single thing, just asked me a load of questions at key points of the year so had to put a lot of effort in to tracking everything with no help. SJD and other accountants also work with freeagent so even if I did use it I probably wouldn't get rid of my accountant anyway.

I can't see any argument why I should stop paying a grand to get it right personally. Spending time on here reading daily posts about chumps trying to do it themselves and don't even know how to put expenses on a P11D or when and how to fill in dividend vouchers against payments so have to ask a bunch of strangers on an internet forum has convinced me of that.

<makes sure Simon D isn't around> although saying all that I do feel put out from time to time when I pay top dollar for accounants that then just ask me to send my spreadsheet in and take the calcs of that... but it works very well and has done for 4 years so am happy to stick with it. I do have an accountant on call whenever I need him and they always answer within a working day so can't complain really.

I heard that.....

Thing is, no matter what you do, you really can't get away from having to do the bookkeeping. Loads of products out there - many free, and many of them good, some of them expensive.We use the spreadsheet because it is so transparent and so simple. Whatever method though, its just a way of getting the figures from client to accountant. The real value in an accountant lies in making sure the client is doing everything correctly, making sure they are running as tax efficiently as possible, being there for when you have a query or simply want to bounce an idea off and keeping up with the legislative changes (of which there are many!)

It is of course possible to do it all yourself, same as you could rewire your house, change an engine and possibly brain surgery. Whether that's a good idea or not just comes down to your perception of the value of your time and the strength of your abilities.

[kaiser78]

For the sake of circa £100 accountant's fee saving it is not really worth it imho, unless you are comfortable with both the basics and nuances of accounting practices.

Going with an accountant = 1 less (major if all goes wrong) life stress.

[northernladuk]

I heard that..... .

Goddamit

Shouldn't you be putting some test laps in or something.....

[LisaContractorUmbrella]

This would be a bit like thinking that plumbing is easy and having a bash - you may end up with a perfectly functioning system of waste and water pipes but you may also end up with a flooded kitchen. In this case though you may end up with a perfect set of accounts or you may end up having a long and difficult exchange with our friends at HMR&C (although I am not sure the analogy works as that would be far worse than a flooded kitchen)

[SimonMac]

For the sake of circa £100 accountant's fee saving it is not really worth it imho, unless you are comfortable with both the basics and nuances of accounting practices.

Going with an accountant = 1 less (major if all goes wrong) life stress.

Tell that to the people who went with Darren Upton!

My view is that ultimately I am responsible for the accounts, even if I pay an accountant, it is just for advice not assurance, so it is in my best interested to know as much about them as I can, I know for the first year I made some mistakes, but on the whole we do not have very complicated accounts, so time spent learning about your business is time never wasted.

[malvolio]

Tell that to the people who went with Darren Upton!

Specious arguement. They are responsible for their finances, not Darren. And that includes ensuring payments are made.

My view is that ultimately I am responsible for the accounts, even if I pay an accountant, it is just for advice not assurance, so it is in my best interested to know as much about them as I can, I know for the first year I made some mistakes, but on the whole we do not have very complicated accounts, so time spent learning about your business is time never wasted.

Agreed totaly, but I prefer having expert support, especially in a world that keeps changing. And even simple things have gotchas - what, for example, is the VAT treatment of buying lunch for the client's team?