Reply to: Do any contractors do their own accounts?

[RichardCranium]

I used to be able to do my own in the pre-IR35 days.

I have since completely lost the plot and don't stand a cat-in-Hell's chance of working them out. My last couple of accountants haven't helped one little bit; they've left me more confused than ever.

[OrangeHopper]

Source (purely out of curiosity, I do not operate within IR35)?

Have a look at this thread.

[TheCyclingProgrammer]

Any VAT saving made on IR35 caught income must be distributed to you via PAYE as per the IR35 income. If you make a £300 saving in a VAT period, that £300 must paid to you via PAYE.

Source (purely out of curiosity, I do not operate within IR35)?

[OrangeHopper]

Any VAT saving made on IR35 caught income must be distributed to you via PAYE as per the IR35 income. If you make a £300 saving in a VAT period, that £300 must paid to you via PAYE.

[lje]

I missed the fact that the VAT FRS is caught by IR35

How is the FRS caught by IR35?

[OrangeHopper]

When people go on about it being better to use accountants to avoid errors they ignore the fact that significant errors may already be present in the data you send him and if (when) the accountants fails to check for a proper balance they end up in the accounts and the CT calculation.

Thankfully, my accountant does do it properly and often queries my books!

These may be true but I have also found accountant make mistakes with correct and balanced data.

It is swings and roundabouts. I missed the fact that the VAT FRS is caught by IR35 while my accountants have made the odd human mistake when preparing the final accounts. I pay them to check my numbers but, as a result of doing the accounts myself, I can check theirs.

[NotAllThere]

Utter bollocks. How does doing your own accounts make you 'more aware of the profitability of your company'?...

When I did my own accounts, I prepared a P&L statement and Balance Sheet each month. And so I had a high awareness of my profitiability. I did this because it helped considerably with producing my end of year statements for CH and HMRC. The awareness of profitability was entirely a beneficial side-effect.

Now I have an accountant. I could ask him to prepare a P&L statement and Balance Sheet each month, but a) I'd have to pay him (I have a pay as you go deal, rather than yearly fee - it works for me). b) I can't be bothered.

Therefore, by doing my own accounts I was more aware of the profitability of my company.

Of course, if you can be bothered to get your accountant to produce these figures, then it makes no difference.

hth

...When people go on about it being better to use accountants to avoid errors they ignore the fact that significant errors may already be present in the data you send him and if (when) the accountants fails to check for a proper balance they end up in the accounts and the CT calculation.

Thankfully, my accountant does do it properly and often queries my books!

[xoggoth]

Found since doing my own that on the first go the balance sheet never balances, always one or more errors in my bookkeeping - an expense in twice, marked as paid from bank when I paid it personally, transfer to reserve account marked as transfer to mine etc.

When I used accountants never once did they ever get back to me and ask me to check my figures, the balance sheet was always in perfect balance. Isn't it very strange that I never made any errors in my bookkeeping back then? Strange too that the director was owed a lot more than was available to pay it but at the time I never knew enough to query it.

When people go on about it being better to use accountants to avoid errors they ignore the fact that significant errors may already be present in the data you send him and if (when) the accountants fails to check for a proper balance they end up in the accounts and the CT calculation.

[Iron Condor]

Me too.

I keep my own books, divis, and do my own VAT.

I dont operate PAYE. So that saves a bit of admin.

I do my own self assessment return too.

My accounant charges £300 to do the annual accounts and corp tax return.

If i left everything to him it would cost closer to £800 a year.

[moorfield]

Now do my own bookkeeping, payroll, divis and number bods do my year end.

[BolshieBastard]

Not really, as I am fullfilling my own accounts on a more regular basis I am bound to be more aware of how the profit of my company is doing than your method of an ad-hoc conversation with your accountant once in a blue moon

Utter rubbish but believe what you will. Merry Crimbo xxx.

[ctdctd]

DIY here - I quite enjoy it in a sad sort of way

[OrangeHopper]

Always done my own but I then use an accountant to prepare the final accounts to ensure I haven't missed anything. No saving doing it this way nowadays but when I started it was significantly cheaper if you did it yourself.

[KackAttack]

Utter bollocks. How does doing your own accounts make you 'more aware of the profitability of your company'? I get all that info clearly explained to me by my accountant

Not really, as I am fullfilling my own accounts on a more regular basis I am bound to be more aware of how the profit of my company is doing than your method of an ad-hoc conversation with your accountant once in a blue moon

[Paddy]

I do my own accounts but I send the who lot off to an accountant to check. It is no cheaper but it gives me scope for creativity.