A quick question re accountants, do you send all your income and expenditure details to your accountant monthly or is it done once a year and what's the best way to do it in your opinion?

Thanks

Speaking from a bookkeeping POV, which I was in a former life, it really depends on how big your business is and how much of the accounts you are doing yourself.
An accountants concern is for your tax liabilities and for presenting your accounts to companies house. Both these are done annually. If you are keeping your own accounts either using a bookkeeping program or on spreadsheets, your accountant want to check the accuracy of the figures, then work out your liabilities etc on an annual basis. if you are not doing any form of keeping your accounts and there is a lot of data, then perhaps quarterly to the accountant, who usually farms out the bookkeeping to people like me for a more formal presentation and accurate figures.

Ok, how does it work with the inland revenue, does that information they require on the tax forms come from the accountant or bookkeeper. I thought monthly was excessive for it being sent monthly to an accountant.

> I thought monthly was excessive for it being sent monthly to an accountant

Normally for a sole trader you would just give all your paperwork to your accountant at the end of your tax year (you won't be VAT registered, I would think). Depending on your accountant, all that is needed is for you to keep ALL invoices (including petrol receipts etc) safely. One method is to use a simple cashbook and write all your expenses on one side (where possible referenced to the appropriate invoice where there is one) and all your income on the other side. I assume that you will issue invoices to your customers ?? So you would keep copies of these marking them paid and referenced to the corresponding cheque/cash/bank receipt etc etc. As much detail as possible is best and being methodical is ideal and keep everything in files etc :) Your accountant will probably tell you how he likes things tho' :) :) It would be a good idea to find your accountant and talk to him before starting out to make sure that everything is OK re: tax/NI etc.

Not even found an accountant as yet, not yet started in my business venture as a sole trader and no not VAT registered. I'll sort out a cash book and yes will keep everything and will be opening up a new bank account for the business.
Will also notify the inland revenue once I start out.
I wouldn't know where to start with a decent accountant without that silly high fee some charge. Everyone I know seems to use ones who charge silly prices and I'm not sure really that's necesary?

I'm not a dog walker, but I have a small home business making dog toys.  I keep my accounts on a spreadsheet with income/expenses, and keep all associated receipts, invoices, etc.  For the first two years I actually submitted my tax return online myself through the HMRC self assessment site.  The first year terrified me so I got an hour with hubby's accountant to walk it through with me.  Turns out it was super easy and straightforward.  It just looks overwhelming as there's lots that didn't apply to me.  The second year I did it in about half an hour on my own.  It does all the calculating for you as long as you put in the right info.

After that hubby and I formed a Ltd a Company for something else, so now his accountants do it for me as part of the company accounts, but I wouldn't have had a problem carrying on myself with the online service.

Hope this helps

Thanks, do all companies have to be listed with companies house? Is that easy to do in the sense of sending back reports? I always thought that was for limited companies but I'm possibly wrong?

Only if you want the company to be a separate legal entity as in limited company. It isnt difficult to do  according to my son, he did it , I wont tell you the actual words my son used lol. He said go on companies house website and work through it. His view is yes do it as it would prevent you being liable personally.
You do still have to be registered with hmrc regardless of what you decide to do and even if you don't initially think you are earning enough to pay tax
My husband has  an accountant not the cheapest but good. rough amount for a basic account £60 pm, oh is paying more than that. It does vary according to what they are doing for you.I would ask around and gets some quotes word of mouth is often most helpful imo One advantage I am told  is that hmrc are more likely to take notice of an accounts figures than general Joe Blogs doing his own don't know if that's really true though . Possibly worth while to begin with if you know nothing at all

If you are handy on the computer you might like to look into a bookkeeping specific program. Sage is the best known and is now easier to use and understand if you a beginner to bookkeeping. There is another one called QuickBooks which is very easy to use and very intuitive.
As Daisy said, keep everything you do very clear, date receipts and invoices when paid,chq numbers etc etc. having a bank account solely for you business is the right way to go,it's amazing how many people think using their personal account is fine. I can't remember what the business turnover is for vat registration,but it's pretty high so I doubt you will be worrying about it. If you are using your own vehicle for your business, it may be better to calculate mileage rather then put petrol receipts through your accounts, as you will need to deduct an amount for personal usage which complicates things. I used milage and at the time the suggested rate from HMRC was 40p a mile charged back to the customer, don't know what it is now, you will need to look on HMRC's website.

Oh, meant to add
If you are in Gloucestershire/north wilts/west Oxon I can recommend the accountant I used to work for. He specialises in small business accounting and works from a home office and is consequently cheaper then average as he isn't paying for an office and staff.
If that is of interest I will PM you with details.

I have had a small holding business for years. Providing things do not get too complicated it is easy to send in your tax returns on line but I suspect an accountant would find more ways of saving you money. My turnover was much less than the amount needed (was it £16K) so all I needed was a simple return.
As others have said you must keep good records and all bills. I have a spike for mine. I have a little duplicates book for bills and payments.
As i made a loss most years this was set off against my other employment.
Louise

> His view is yes do it as it would prevent you being liable personally.

It probably won't be a good idea Sue becoming a limited company. There are costs associated with a limited company - filing annual returns, accounts etc It's best to talk to an accountant initially. He/she will also be able to tell you what else you can claim against your income that you might not otherwise be aware of. As for not being liable personally with a limited company, that is not always the case. For example, if you try to get a loan, banks etc will often want the director of the company to be personally liable / put up surety, maybe on their home etc in case of default.

Hi Jodie, I would be interested in your accountants details, could you PM me them please. Thanks

>Hi Jodie, I would be interested in your accountants details, could you PM me them please. Thanks

PM sent. :-)

Thank you all, it maybe worth my while speaking to one and possibly employing one for the first financial year to see what's what. I'm staying as a sole trader or will be when up and running as not interested in a limited company for the reasons posted and some others.
Jodi thanks for the offer but don't live anywhere near you, a fellow colleague and walker has recommended an accountant so will see about that one, however she's the one who sends everything in monthly to her. Unless she does that and the monthly bill is what you'd pay yearly but split across the 12 months, if so then that's an option :-)

I am a sole trader and I use an online accounting system called Kashflow. I have used it for years and it is really simple to use. I haven't had to use an accountant yet so far, though do get advice occasionally from a friend who is an accountant, but I keep all my own books and file my own tax returns. Though with Kashflow (and I am sure with other account packages too) you can also give an accountant access to all the data if you want them to do some of it.