Do you use an accountant?
Discussion
We've used the same firm of Accountants since 1984.
First we dealt with the owner of the business, who founded the company at that time, and now his daughter, although the father still is involved.
They have expanded in that time and now have several offices.
I believe that we were his first client.
I rely on them quite heavily for both business and personal stuff. I value their advice and opinions and their fees are always reasonable.
So I'm perfectly happy...
First we dealt with the owner of the business, who founded the company at that time, and now his daughter, although the father still is involved.
They have expanded in that time and now have several offices.
I believe that we were his first client.
I rely on them quite heavily for both business and personal stuff. I value their advice and opinions and their fees are always reasonable.
So I'm perfectly happy...
Big E 118 said:
My accountant advises me on the most tax efficient way to run the business and keeps up to date with the very regular legislation changes.
It's a far better use of my time to manage my business and pay someone else to deal with the accounts. My accountants fees are pretty minimal over the year and I'd think he saves me more than I pay him.
This.It's a far better use of my time to manage my business and pay someone else to deal with the accounts. My accountants fees are pretty minimal over the year and I'd think he saves me more than I pay him.
My accountant has consistently proven to be worth more than he costs me and is always up to date on rules, enabling me to get on with more profitable things.
sideways sid said:
Big E 118 said:
My accountant advises me on the most tax efficient way to run the business and keeps up to date with the very regular legislation changes.
It's a far better use of my time to manage my business and pay someone else to deal with the accounts. My accountants fees are pretty minimal over the year and I'd think he saves me more than I pay him.
This.It's a far better use of my time to manage my business and pay someone else to deal with the accounts. My accountants fees are pretty minimal over the year and I'd think he saves me more than I pay him.
My accountant has consistently proven to be worth more than he costs me and is always up to date on rules, enabling me to get on with more profitable things.
I use one. On paper she's kind of expensive but I've never questioned it. Her advice and assistance leading me through all of the things we've done as a business so far and my thoughts for future, all the while as I've been trying to run it, have been invaluable.
I'm sure I could fill out the forms myself, but as I saw Eric mention in a different post, efficient accounting is not just for tax purposes. I see her input as beyond that and I've no complaints. I actually look forward to our meetings, although the preparing the accounts beforehand still sucks.
I'm sure I could fill out the forms myself, but as I saw Eric mention in a different post, efficient accounting is not just for tax purposes. I see her input as beyond that and I've no complaints. I actually look forward to our meetings, although the preparing the accounts beforehand still sucks.
My Accountant's fee amounts to 2% of my turnover - I can work out that much! - and I'd say he's worth every penny.
Yesterday he was in my office for at least an hour and a half, ostensibly to reconcile some transactions in Xero that Mrs T was struggling with, but we also used him as a sounding board about banks, lending, business performance etc.
I daren't think how long it would take me to sort my own accounts. I'm sure I spend that time more effectively concentrating on what I do best.
Yesterday he was in my office for at least an hour and a half, ostensibly to reconcile some transactions in Xero that Mrs T was struggling with, but we also used him as a sounding board about banks, lending, business performance etc.
I daren't think how long it would take me to sort my own accounts. I'm sure I spend that time more effectively concentrating on what I do best.
voicey said:
Absolutely. I trust my accountant to make sure my business doesn't blow up at the next reporting period and he trusts me to make sure his Ferrari doesn't blow up on the first corner.
Moral of the story - play to your strengths.
Lol! Moral of the story - play to your strengths.
As it happens, my wife incorrectly guessed our Accountant was on the phone today. It turned out to be a client of ours, an indie VAG specialist.
We agreed there was no way they should swap roles!
Current business is 15 years down the line and never used an accountant. My daughter is an accountant and would do the job for free for me but I don't need her. It isn't rocket science and with modern software takes no time at all to do. Never understood why you would pay someone to do what you can do yourself.
Well, peoples' positions are different, there may not be as much separation between work and home leading to splits of business/domestic cost, for example. And as said before a few times, having someone who is keeping on top of the shifting rulesets to maximise efficiency is handy. Then someone might not want to do it.
'Never understood' is a strange choice of phrase, implying that you're for some reason looking down on someone who does use one for whatever reason. It's classic PH, just because you don't, no one should. I hope you're not in the business of selling empathy!
If I was being uncharitable, I would 'never understand' how someone could have a website representing their business that looked like it was written in 1992. But I'm not, it's your choice, obviously hasn't hurt your business, and it's exactly what you need. Life is too short, no?
'Never understood' is a strange choice of phrase, implying that you're for some reason looking down on someone who does use one for whatever reason. It's classic PH, just because you don't, no one should. I hope you're not in the business of selling empathy!
If I was being uncharitable, I would 'never understand' how someone could have a website representing their business that looked like it was written in 1992. But I'm not, it's your choice, obviously hasn't hurt your business, and it's exactly what you need. Life is too short, no?
Edited by Tonsko on Friday 24th February 06:32
stevensdrs said:
Current business is 15 years down the line and never used an accountant. My daughter is an accountant and would do the job for free for me but I don't need her. It isn't rocket science and with modern software takes no time at all to do. Never understood why you would pay someone to do what you can do yourself.
Businesses can be a bit like cars. If you've got a Nissan Micra K12 they're fairly simple to work on, you'd probably service it yourself and even be able to fix major repairs. On the other hand if you've got a Lamborghini Countach or McLaren 650 then (a) you might not have the necessary skills and (b) you're probably earning so much that having it serviced by professionals actually saves you money.It depends on (a) how complicated your business is and (b) what YOU think is the most productive use of your time.
The other factor is that non-accountants don't know what they don't know. So, even though they may THINK they are doing everything right, that may be very far from the case.
The main problem is that the two major government agencies that monitor business accounts (HMRC and Companies House) have not being doing their jobs correctly for at least two decades.
In other words, the most appallingly compiled accounts have not been checked properly or queried by those whose job it is to check them.
The main problem is that the two major government agencies that monitor business accounts (HMRC and Companies House) have not being doing their jobs correctly for at least two decades.
In other words, the most appallingly compiled accounts have not been checked properly or queried by those whose job it is to check them.
stevensdrs said:
Current business is 15 years down the line and never used an accountant. My daughter is an accountant and would do the job for free for me but I don't need her. It isn't rocket science and with modern software takes no time at all to do. Never understood why you would pay someone to do what you can do yourself.
I think there's a big difference between being able to fill in the forms and knowing all of the potential accounting rules. Plus a good accountant should have a feel for "the norm" when dealing with certain situations, that can help with business guidance. Business owners are more likely to be capable, self-thinking people, but there are still situations when deferring to a specialist has its benefits 
I use an accountant. T/O less than 1m, I keep an excel file of all the figures and its sent to accountant to do annual accounts, personal return, company return etc.
Why I keep one?
To do the admin s
t like returns etc that I cant be bothered with and more importantly when the tax man wants to have a look, hopefully I have to deal with them AS LITTLE as possible and direct them straight to the accountant
Why I keep one?
To do the admin s
t like returns etc that I cant be bothered with and more importantly when the tax man wants to have a look, hopefully I have to deal with them AS LITTLE as possible and direct them straight to the accountantEdited by XMT on Friday 24th February 11:07
Yes and I'm now worried. My accounting year ended in Sept' last year. Still not seen my finalised accounts and don't know my CT liability or when it will be due. Getting hold is like pulling teeth. Thankfully my book keeper is trying to keep things right and keeps vat and so on sorted.
No advice on pension, annual investment and probably lots more that I don't know about.
Need to change urgently. How easy is it to switch as they do the PAYE too?
No advice on pension, annual investment and probably lots more that I don't know about.
Need to change urgently. How easy is it to switch as they do the PAYE too?
Eric Mc said:
Not making excuses for your accountant but have you been chasing him/her up?
Switching is easy. Just find a new one and then tell your old accountant that you are changing.
I did but have pretty much given up. Tax man sent me a brown envelope about my tax return due in Jan. Called, we'll sort that. Heard nothing, don't know what's due. If you need any more clients..Switching is easy. Just find a new one and then tell your old accountant that you are changing.
BGARK said:
Just curious really. Unless you turnover more than £6.5 million, employ more than 50 people etc you do not need audited accounts.
So my question is how much do you pay an accountant and what do you expect in return?
All of the basic stuff is easily handled by modern software these days so unless its to do a final check off for a couple of hours what else do you need?
Thanks.
Audited accounts is one thing, accounts are another thing! So my question is how much do you pay an accountant and what do you expect in return?
All of the basic stuff is easily handled by modern software these days so unless its to do a final check off for a couple of hours what else do you need?
Thanks.
When it comes to software, the person who makes the entries can also make a difference, in the same way as taking advice from an accountant at other times can make a difference. Their superior knowledge can and does make a difference to the (correct) numbers that are entered. Software alone is less than ideal.
Every year I've been in business my accountant has legitimately saved me money on my tax bill beyond his fee, with no dodgy scheme either. Definitely worthwhile in my view.
As already pointed out, it also saves the business owner's time, which can be put to better use.
We've had two occasions where having a very good accountant really did pay for itself.
Once when I bought my fellow shareholder out when he didn't want to sell, once when HMRC claimed we were in the wrong & were after us for an uncomfortable amount of money.
Thankfully we have fees protection insurance so the 12mth saga was all handled by the accountants & the result went our way.
Once when I bought my fellow shareholder out when he didn't want to sell, once when HMRC claimed we were in the wrong & were after us for an uncomfortable amount of money.
Thankfully we have fees protection insurance so the 12mth saga was all handled by the accountants & the result went our way.
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