Reply to: The Official I Don't Use An Accountant Thread

[Maslins]

For anyone starting out contracting an accountant is absolutely the right thing to do, but for those who have been running a business for a number of years, and have access to something like FreeAgent (I would assume other packages are similarly good but I've not seen them) going solo is an option if you are happy with the risk v reward.

I think this is sensible (and if any doubt I say that as an accountant).

Like with many things in life, people can DIY. If you've savvy and prepared to put in a bit of effort, you can no doubt do a decent enough job. As you say it's down to each person to weigh up the risk and effort vs saving some money.

Packages like FreeAgent are making it easier to DIY as time goes on. That trend will continue. For some clients I realise the main thing we provide is peace of mind. Someone to oversee things, check they don't miss stuff (as inevitably even if they're very competent, accounts/tax isn't their main focus), and ensure they don't make any daft mistakes.

[SimonMac]

Nice swerve there...

Ps, I am not a contractor but an accountant

So an accountant is advocating I use an accountant, I bet you know one too that could help

I don't think any one would deny an accountant would do things better, I know for a fact there are some thing I could claim for but I don't as it's easier not do.

But given the number of people who have contact me (always with the caveat I have no idea if I am doing it right) asking how much effort it is to do things yourself. Given most of those with FreeAgent still do a lot of processing of transactions themselves anyway like managing receipts day to day the only big ticket items are end of year and it's possible to do that yourself, although not everyone would agree its prudent to do so.

For anyone starting out contracting an accountant is absolutely the right thing to do, but for those who have been running a business for a number of years, and have access to something like FreeAgent (I would assume other packages are similarly good but I've not seen them) going solo is an option if you are happy with the risk v reward.

[craigy1874]

How do you know your accountant hasn’t made any cock ups? I’m not sure if the details of the contract been your accountant and yourself but there has been examples (albeit rare) of accountants making mistakes and you as the business owner are still responsible.

Nice swerve there...

Ps, I am not a contractor but an accountant

[SimonMac]

Can I ask how you know you haven't made any cock ups?

You don't know what you don't know so I feel it is impossible for you to say this unless you have been inspected by HMRC and they have given you the all clear!

I guarantee an accountant could pick up at least 3 things you have done incorrectly...

How do you know your accountant hasn’t made any cock ups? I’m not sure if the details of the contract been your accountant and yourself but there has been examples (albeit rare) of accountants making mistakes and you as the business owner are still responsible.

[saptastic]

Can I ask how you know you haven't made any cock ups?

You don't know what you don't know so I feel it is impossible for you to say this unless you have been inspected by HMRC and they have given you the all clear!

I guarantee an accountant could pick up at least 3 things you have done incorrectly...

Theres a challenge to take up @SimonMac

[craigy1874]

Another bump, this was the first CT600 since I moved from the spreadsheets to FreeAgent (free with my NatWest business account)

Not sure if the process is getting easier (micro accounts certainly help) or if I’m getting the hang of things but the three or four hours for the end of year was completed in less than an hour.

Again caveat emptor after 7 years of doing my own books I’ve not hand any major cock ups, but if you are filling in FA for your accountant you’re doing half their job for them!

Again not suitable for everyone, but those who are wavering seeing the accountant fees keep going up it’s an option!

Can I ask how you know you haven't made any cock ups?

You don't know what you don't know so I feel it is impossible for you to say this unless you have been inspected by HMRC and they have given you the all clear!

I guarantee an accountant could pick up at least 3 things you have done incorrectly...

[SimonMac]

Another bump, this was the first CT600 since I moved from the spreadsheets to FreeAgent (free with my NatWest business account)

Not sure if the process is getting easier (micro accounts certainly help) or if I’m getting the hang of things but the three or four hours for the end of year was completed in less than an hour.

Again caveat emptor after 7 years of doing my own books I’ve not hand any major cock ups, but if you are filling in FA for your accountant you’re doing half their job for them!

Again not suitable for everyone, but those who are wavering seeing the accountant fees keep going up it’s an option!

[VectraMan]

Bit of a bump, but I completed and submitted my Corp Tax return yesterday using the new process for the first time, gone is the PDF and its now a fully online web form, HMRC calculated roughly the same as my calculations using Diy Accounting (hector said I owed ~£150 more which I can live with, would rather they owe me money than I owe them!


Was a lot less painful as previous times, either I have done something very very wrong or I am getting the hang of it.

Yes I used it earlier in the year. Definitely an improvement, and unlike the PDF when you press the help buttons it gives you useful information. Which is nice.

[SimonMac]

Bit of a bump, but I completed and submitted my Corp Tax return yesterday using the new process for the first time, gone is the PDF and its now a fully online web form, HMRC calculated roughly the same as my calculations using Diy Accounting (hector said I owed ~£150 more which I can live with, would rather they owe me money than I owe them!


Was a lot less painful as previous times, either I have done something very very wrong or I am getting the hang of it.

[FK1]

I hope that your self-accounting method is more lucid than your use of English, and more accurate?

I am sorry for my English. Fortunately clients do not care much about my Scottish and I've been contracting in the UK successfully for over 8 years with my bad (I admit that) English.

Indeed "self-accounting" is dangerous for someone not mature enough and inexperienced. However for some educated people who run their LTD for years that rather normal than crazy.

Just subject to their laziness and comfort zone. It is more psychological and personal thing than anything else.

[Archangel]

I do my own. I use payroo and freeagent.

I also have staff to cater for, including pensions.

I also carry lots of stock.

I no longer bill clients by the hour though, I run a retail business and do the accounts during quiet periods when I would otherwise be playing solitaire or surfing. It takes me around half an hour a week (payroll, pensions, uploading transactions, which I would do even with an accountant) plus an extra half hour at month end (ditto with an accountant) , plus an extra half hour at quarter end (ditto with an accountant), and an extra couple of hours or so at yearend which an accountant would do, but I'd spend an hour checking what he had done.

I've also just moved house and had no problems securing a mortgage with lloyds.

I had a couple of unpleasant experiences with accountants, one failed to file eoy accounts, I was fined but they paid. Another failed to put childcare through as a company expense, so I missed out on tax relief for a couple of years before I got a grip and started doing it myself.

[MrMarkyMark]

I hope that your self-accounting method is more lucid than your use of English, and more accurate?

Everyone has to learn somewhere, obviously gaining experience from their mistakes along the way.

Hopefully this learning exercise won't involve a custodial sentence

[Scruff]

I don't use an accountant since opened a new LTD this year.
Using the well-known online system for the bookkeeping. £340 per year.
Did not decide on the accounts yet (CT600). Maybe will pay £100 to compile and file it.

Feel myself much more happier than before when I did not understand for what I paid to an accountancy.
So far I paid to the accountancy around £10K

I hope that your self-accounting method is more lucid than your use of English, and more accurate?

[northernladuk]

I don't use an accountant since opened a new LTD this year.
Using the well-known online system for the bookkeeping. £340 per year.
Did not decide on the accounts yet (CT600). Maybe will pay £100 to compile and file it.

Feel myself much more happier than before when I did not understand for what I paid to an accountancy.
So far I paid to the accountancy around £10K

[FK1]

I don't use an accountant since opened a new LTD this year.
Using the well-known online system for the bookkeeping. £340 per year.
Did not decide on the accounts yet (CT600). Maybe will pay £100 to compile and file it.

Feel myself much more happier than before when I did not understand for what I paid to an accountancy.
So far I paid to the accountancy around £10K