Does it matter if my accounting service isn't run by an accountant?

[Maslins]

There's no requirement for a qualified accountant to prepare and submit your accounts. Legally you can DIY, or any Joe Bloggs can call themselves an accountant and get set up to do it for you.

Inevitably qualified accountants are likely to charge more. Very aware there's varied opinions on whether they/we are worth it or not. There are of course some brilliant unqualified accountants and some useless qualified ones, same as virtually any industry. However, if you've got an unqualified accountant, who isn't cheap, and you don't think is good...then seems you've got worst of all worlds.

There are some situations where not having a qualified accountant can be painful or limiting. Eg reference requests for things like mortgages. Some lenders will be fine with a few HMRC docs, but many will want to see some kind of formal reference signed off by an accountant with one of the main qualifications. There's normally a way around it if you can't get that though.

Hopefully independent of any doors the letters open up, it should also mean:
- a guaranteed minimum level of competence, as the exams to qualify aren't that easy.
- a regulatory body to complain to if you're not happy. Remember this isn't just re accounting ability, but also ethics. Many of the "modern" accounting businesses (not run by qualified accountants) will make a tidy profit off you/your data, on top of the fees they charge. Sometimes you can pay for the product and also be the product. You might think "what's the harm", well, it typically means a third party they might recommend is charging you well over the odds to recoup the commission they pay to the accountant. Firms overseen by one of the main regulatory bodies have strict obligations re any such income they might receive.
- at least some broader experience (even if just theoretical from exams rather than practical) of accounting/tax matters outside the every day things that come up with the typical client they work with.

[BigLadFromBeeston666]

So, one "friend" recommended a small online company, and now another "friend" is recommending a different online company.

I'd be wary about jumping on to this new company that hasn't even been going 2 years and is run by people who seem to set up and close down companies as a hobby.

Your second point is valid, I need to do due diligence on that company he has recommended. But these are guys are actually friends and also use the services, it isn't some kind of soft sell. I proactively enquired both times.

[BigLadFromBeeston666]

Thank you everyone. This helped confirm a suspicion I had.

I'm going to use FreeAgent to do my own accounts for the foreseeable, and only use an accountant to calculate Corporation Tax and End of Year accounts. If I run into trouble I am going to use Gorilla Accounting.

I feel like I have been a bit of a fool these last three years, but a valuable lesson has been learnt.

Thanks again.

[WTFH]

So, one "friend" recommended a small online company, and now another "friend" is recommending a different online company.

I'd be wary about jumping on to this new company that hasn't even been going 2 years and is run by people who seem to set up and close down companies as a hobby.

[Old Greg]

My issue is that him not being a Chartered Accountant, means he may not be qualified to give me the full range of advice I need.

Sounds like you need to change accountants.

[BigLadFromBeeston666]

If I use a UK Ltd Co again I will be using a NatWest/RBS bank account with bundled FreeAgent. And a software package for end of year accounts, Companies House and CT600 submissions. In nearly 15 years of using professional accountants, I never had a single piece of pro-active input from any of them. And when I asked them for advice there was an evens chance it was wrong. In the future, I will definitely DIY. On the chance I need input from a professional accountant, I'll pay for that single piece of work.

This is the conclusion I have come to as well. The straw that is breaking the camel's back, is that now I am asking about restructuring the business for another director to come onboard, they are pointing me to a completely different company.

I have a Starling business bank account so intend to serve notice on my accountant and pick up FreeAgent and integrate both. My ofriend has recommended using this for Corporation Tax and End of Year accounts:
wwwdotonlineaccountfiling.com

[BigLadFromBeeston666]

Anyone can call themseves an accountant. Or engineer, or plumber or chef etc... What you cannot do, is call yourself a Chartered Accountant (or one of the other types of accounts professionals). Nor can you call yourself a Chartered Engineer. So, what exactly are you asking about when you say "does it matter?". Because the answer depends on your issue. HTH.

My issue is that him not being a Chartered Accountant, means he may not be qualified to give me the full range of advice I need.

[Fred Bloggs]

Fine. Fill yer boots.

OP is being ripped off. For less money he can have a full service.
Your point is that he can get the same service he currently has for free/almost nothing.

Exactly.

[Lance]

Does it matter if my accounting service isn't run by an accountant?

If I use a UK Ltd Co again I will be using a NatWest/RBS bank account with bundled FreeAgent. And a software package for end of year accounts, Companies House and CT600 submissions. In nearly 15 years of using professional accountants, I never had a single piece of pro-active input from any of them. And when I asked them for advice there was an evens chance it was wrong. In the future, I will definitely DIY. On the chance I need input from a professional accountant, I'll pay for that single piece of work.

Fine. Fill yer boots.

OP is being ripped off. For less money he can have a full service.
Your point is that he can get the same service he currently has for free/almost nothing.

[Fred Bloggs]

£95 a month for no professional advice is horrific. FreeAgent costs just £25 a month and does all that for you. And a lot of accountants bundle FreeAgent, and produce a professional service as well...


No brainer. Change. Read the sticky on accountant recommendations.

If I use a UK Ltd Co again I will be using a NatWest/RBS bank account with bundled FreeAgent. And a software package for end of year accounts, Companies House and CT600 submissions. In nearly 15 years of using professional accountants, I never had a single piece of pro-active input from any of them. And when I asked them for advice there was an evens chance it was wrong. In the future, I will definitely DIY. On the chance I need input from a professional accountant, I'll pay for that single piece of work.

[Lance]

£95 a month for no professional advice is horrific. FreeAgent costs just £25 a month and does all that for you. And a lot of accountants bundle FreeAgent, and produce a professional service as well...


No brainer. Change. Read the sticky on accountant recommendations.

[Fred Bloggs]

Anyone can call themseves an accountant. Or engineer, or plumber or chef etc... What you cannot do, is call yourself a Chartered Accountant (or one of the other types of accounts professionals). Nor can you call yourself a Chartered Engineer. So, what exactly are you asking about when you say "does it matter?". Because the answer depends on your issue. HTH.

[BigLadFromBeeston666]

I use a very small online accounting service that was recommended to me by another contractor friend around three years ago. The online accounting service looks very dated, like something from the 00s, and it's essentially a bespoke spreadsheet.

This online accounting service charges £95 (+VAT) per month to:

• - Calculate my VAT returns quarterly.
• - Calculate my CT to be paid.
• - Complete and submit year end accounts.
• - Run payroll and provide some (light touch) advice and guidance.

Now, from what I can ascertain the owner of the online accounting service isn't actually an accountant. They are an IT consultant, who created this service and then uses freelance accountants at key periods (e.g. Year End Accounts).

I must say the service over the last three years has error free and without incident. I changed to Crunch for a few months to try their platform and had a terrible experience, including them getting my VAT returns wrong, so I switched back to this accounting service.

But, I'm not qualified to know if I am getting what I pay for from this service and the fact that this seems like a contractor selling a spreadsheet doesn't sit well with me.

I'm considering switching again to a specialist like Gorilla Accounting, or perhaps even doing my own accounts using Free Agent in conjunction with my Starling Bank Business account.

Has anyone been in a similar position?