Local vs Online vs DIY accounting

[SueEllen]

In the early days, having an accountant was useful - corrected a few errors I made and saved me a few grand over the first 2-3 years but after that, I would say that the benefit has reduced (which may be a reflection on my accountants!)

I have gone back to permie but would be tempted if staying contracting to go DIY but depends on your attitude to risk etc.

You can get accountants who do just your year end for you.

This means you do the payroll, VAT etc.

However it does mean you have to be on the ball with legislative changes plus should not come here or on any accountancy forum asking questions like "I've taken £7,000 out per month how to I make some of it salary?" and "I is a hotel room an expense?"

[SneakySimon]

Accountant

In the early days, having an accountant was useful - corrected a few errors I made and saved me a few grand over the first 2-3 years but after that, I would say that the benefit has reduced (which may be a reflection on my accountants!)

I have gone back to permie but would be tempted if staying contracting to go DIY but depends on your attitude to risk etc.

[Alan @ BroomeAffinity]

I am clearly biased but... while you can and probably could do your own accounts, you're better having an accountant who can sort you out with your tax planning and so forth. One which has real time access to your accounts preferably. You mention quckbooks so you're along the right lines but look at freeagent maybe.

[SueEllen]

2 and 3

Go for an accountant using a software package. Then when you are up on your feet after a year or so get a cheaper accountant.

There is no point in you spending time keeping up to date with so much tax legislation and filing things.

[steviep]

Background: I started contracting a couple of years ago, setting up as a Limited company and appointing a local accountant.

Unfortunately, I've had a mixed experience with them: poor communication, unclear pricing. So I'm going to drop them and am considering what to do next, which I see as:
1. Find and appoint another local accountant
2. Go with an online accountant (inniAccounts or similar)
3. Manage my own accounts using online software (QuickBooks, Xero or similar)

I like keeping control of things, and am quick at picking things up. Of course, I want to keep costs down. I use QuickBooks to import from bank & CC accounts, and do the invoicing and VAT returns – it all seems pretty straightforward. So I am leaning towards option 3.

Is this a stupid thing to do? Obviously there are benefits to using a professional, qualified accountant. But if I can do it all myself for a fraction of the cost, why not?

What is your experience solely using QBO / Xero?
Is it a growing trend for contractors to do their own accounting?
What else should I consider?

Thanks!