do I really need an accountant?

[QuatroFromageo]

I wanted to know if any of you have accountants to do your books and if the benefits outweigh the costs?
I keep being recommended SJD contractor accountants who are meant to be the biggest and the best for small business and freelancers.
Slightly worried that they might have the biggest price tag too!


But whether I go with a big firm or a personal accountant, I don't know if they can really offer me anything I can't do myself.
If you lot could share your experience of accountants I'd be grateful.
​

 

[trev]

I liken this question to a DIYer coming on here and saying "I'm a complete novice but I'm going to change my CU myself, what do I need to look out for?"
Yes there's nothing to stop you doing your own self assessment form every year (and there are probably millions out there who do their own, fair play to them) but then again there's nothing to stop you pulling your own teeth out but I'm sure you'd rather visit a dentist. There are loads of small accountancy practices out there who will do what you need for a pre agreed fee and chances are they'll know more about what you can and can't claim than you or I.

 

[Rockingit]

All depends on where you're at and how much you know about the tax system. If you are a sole trader then there's not a formal need to use an accountant, but if you're a Ltd then you have to get your books audited regardless.

I do all my accounts, and my wifes, and it's not half as hard as people make out. I'm VAT registered as well, but then if you get some decent bookeeping software it's normally just a push-button exercise anyway. Only if you get into a real predicament can an accountant really justify their money.

Keeping good records as you go is half the battle I find.

 

[oldtimer]

It depends some on the forum say yes others say no me I do my own but I am no VAT registered so I manage it what I will say whether you have or have not an accountant you need to keep good records and for me that means filling in my spreadsheets every day yes every day and filing all my paperwork ie receipts etc in a folder that are all in order plus I back up my stuff on a memeory stick every couple of week or even weekly if I have been busy.

Or you could throw all your receipts on the dash then let them fall on the floor beside the Maccy D containers then at the end of the year you can gather them all up dump thenm on an accountants table and he will charge you an extra £200 to get the girl in the office to sort them out.

In other words it is a lot of common sense and you are legally obliged to keep good audited records in case HMRC want to speak to you and its worth it in the long run

 

[cogsey133]

I have an HND in accountancy and still wouldn't touch my own accounts....its too much bloody hassle! Trev is quite right plenty practices out there who will do the job for a set fee (their fee is tax deductible too)

 

[QuatroFromageo]

I have an HND in accountancy and still wouldn't touch my own accounts....its too much bloody hassle! Trev is quite right plenty practices out there who will do the job for a set fee (their fee is tax deductable too)

as an expense?

 

[trev]

Yes as an expense, plus I reckon if your returns are done by an independent 3rd party you're less likely to be the subject of an investigation. Although that theory is as yet unproven

 

[cogsey133]

Any fees you have to pay a specialist such as an accountant are tax deductible as an expense

 

[Knobhead]

Going back a good few years my partner and I wound up our entertainments and publishing business. Our accountant was a wind up merchant. He gave us his bill first and then gave us the accounts showing how much HMIT owed us. He was worth the money.

 

[Rockingit]

chances are they'll know more about what you can and can't claim than you or I.

In my experience Trev, not always so! Many of them are so set in their ways and in 'sausage machine' mode that they don't really ever think about what's legitimate for your particular industry and business. I used to use a guy that specialised in the entertainments industry, and he told me one time to buy more flowers for the wife (ex wife) as they could be justified as a touring expense!! How many High Street outfits would say that to you??

 

[trev]

In my experience Trev, not always so! Many of them are so set in their ways and in 'sausage machine' mode that they don't really ever think about what's legitimate for your particular industry and business. I used to use a guy that specialised in the entertainments industry, and he told me one time to buy more flowers for the wife (ex wife) as they could be justified as a touring expense!! How many High Street outfits would say that to you??

Completely agree with what you're saying mate, there are good and bad in every walk of life but I'm confident my mate Richard knows more about tax legislation and what I can claim for than I do.

 

[Rockingit]

Such a shame that people don't have this attitude when it comes to paying for a professional electrician................

 

[plugsandsparks]

All depends on where you're at and how much you know about the tax system. If you are a sole trader then there's not a formal need to use an accountant, but if you're a Ltd then you have to get your books audited regardless.

I do all my accounts, and my wifes, and it's not half as hard as people make out. I'm VAT registered as well, but then if you get some decent bookeeping software it's normally just a push-button exercise anyway. Only if you get into a real predicament can an accountant really justify their money.

Keeping good records as you go is half the battle I find.

Hope not as i do my own, i actually enjoy it. Do my VAT, it takes about an hour every three months, paye takes about 2 hours, end of year / CT takes about 8 hours.
Trick is to do you daily record keeping, book all your expenses in regularly and use HMRCs helpline. Certainly in the early days it was painful, there are fines waiting around the corner for almost all HMRC submissions, but they do negotiate if you have a case, I managed to get a £400 fine dropped to £100 and then £0 by simply appealing.
At least if you are doing your own accounts you know where you are at any given period.
However there is a steep learning curve which i am sure puts most people off.

 

[oldtimer]

Self discipline is what it is all about if you have the hunger to be your own boss then fine but if you cannot be bothered then bring on the fines

 

[Rockingit]

I have always been lead to believe that as a Ltd you need to have your annual return, therefore your annual accounts, verified independently by a certified accountant. This is to stop you from hiding assets and so on. Now, times change and this may have changed recently, but if so I've not been made aware.