Accounting software & Banking

[pmanson]

Hi All,

I'm in the process of setting up my own consultancy business, i've got the business registered with Companies House, I have selected an accountant etc.

I'm now looking at banking / software. Originally I would have just looked at someone like Nationwide (who I personally bank with) but i've seen Tide mentioned on here a few times which is likely to be more cost effective for me (no money fees but a small transaction fee). Any other recommendations?

Accounting software wise I was looking at Xero but the accountant has also mentioned Freeagent (they are happy to use either). Again does any one have any experience with these packages?

Cheers,
Phill

[thecrow]

Hi,

I did the same thing about three months ago and have been using Freeagent (FOC with Natwest/RBS for two years I think) - I'm using an accounting firm (Aardvark Accounting) to handle everything for me (and the cost includes Freeagent anyway) and use Freeagent to record my day-to-day activities.

IMO it is simple to use and the bank feed means I don't have to input anything myself. Saves a lot of time. Once you've categorised items it then 'guesses' the categories/VAT etc fairly well so you only have to approve the transactions, before they are posted.

I am sure it is easy enough to do it all yourself, but for what it is worth I have appreciated having the backing of a company who I can ask questions, and will prompt me for things before deadlines (VAT etc). They also run my payroll for me.

[pmanson]

thecrow said:

Hi,

I did the same thing about three months ago and have been using Freeagent (FOC with Natwest/RBS for two years I think) - I'm using an accounting firm (Aardvark Accounting) to handle everything for me (and the cost includes Freeagent anyway) and use Freeagent to record my day-to-day activities.

IMO it is simple to use and the bank feed means I don't have to input anything myself. Saves a lot of time. Once you've categorised items it then 'guesses' the categories/VAT etc fairly well so you only have to approve the transactions, before they are posted.

I am sure it is easy enough to do it all yourself, but for what it is worth I have appreciated having the backing of a company who I can ask questions, and will prompt me for things before deadlines (VAT etc). They also run my payroll for me.

Thanks Chris. Similar approach for me too, i'll (Well my wife) will run it day to day and then i'll get them to check it. They'll also do payroll for me too which is useful.

While i'm thinking about it, anything else I need to consider (i need laptops, software, insurance(?)) and that's about it I think.

[Cupra Black]

I used to use Sage but have used Xero since the beginning of the year.

Apart from it being miles cheaper it is so much easier to use than Sage. IMO Everything about it is better.

I have started to use Xero Payroll too and its also simple to use.

[wheelerc]

I use Xero and HSBC. I'd highly recommend Xero.

[The Moose]

Avoid QuickBooks if you can!

[pmanson]

Looks like Xero is a winner then. I've signed up with Tide for banking

[Dixy]

Having done accounts on spread sheets for over 25 years had to change because of MTD. Accountant recommended Xero and have been surprisingly pleased.

[Mr Pointy]

pmanson said:

Thanks Chris. Similar approach for me too, i'll (Well my wife) will run it day to day and then i'll get them to check it. They'll also do payroll for me too which is useful.

While i'm thinking about it, anything else I need to consider (i need laptops, software, insurance(?)) and that's about it I think.

Get a seperate credit card for business use if you haven't already done so. Think about a business mobile phone number & a dual sim phone.

[pmanson]

Mr Pointy said:

pmanson said:

Thanks Chris. Similar approach for me too, i'll (Well my wife) will run it day to day and then i'll get them to check it. They'll also do payroll for me too which is useful.

While i'm thinking about it, anything else I need to consider (i need laptops, software, insurance(?)) and that's about it I think.

Get a seperate credit card for business use if you haven't already done so. Think about a business mobile phone number & a dual sim phone.

I was planning to just use my AMEX for business (and stop using it for private transactions), going to transfer my personal phone onto a business tariff. Although maybe having a 2nd line wouldn't be a bad thing

[Mr Pointy]

pmanson said:

Mr Pointy said:

pmanson said:

Thanks Chris. Similar approach for me too, i'll (Well my wife) will run it day to day and then i'll get them to check it. They'll also do payroll for me too which is useful.

While i'm thinking about it, anything else I need to consider (i need laptops, software, insurance(?)) and that's about it I think.

Get a seperate credit card for business use if you haven't already done so. Think about a business mobile phone number & a dual sim phone.

I was planning to just use my AMEX for business (and stop using it for private transactions), going to transfer my personal phone onto a business tariff. Although maybe having a 2nd line wouldn't be a bad thing

Whatever mechanism you use it makes it much easier to track & allocate spending if you keep personal & business spending separate, although I'm not sure if maybe you should have a business credit card - ie one taken out by the company. Your accountant should be able to advise.

Presumably you are going to take out a phone contract paid for by the business but think about work/life separation. Do you want to be able to turn off the work phone but still be contactable by your family?

[ecs]

I use Tide for my business - I somewhat regret it and I think I actually meant to sign up to Starling Their app and website feel like a public beta version of what's to come, I often get strange bugs in the app where things go wrong. Also, faster payments take forever to come through, I know officially they take 2hrs but every other bank I've used has been much faster. Either way, they're seriously cheap but Monzo are going to be releasing their business product soon - it looks promising so I'll probably switch to them once it's ready.

Seeing what you mentioned about Amex, if you've already got a card then you can refer your business to yourself and claim an 8k points bonus for the referral. The points all go into the same pot so there's no harm in having two cards.

[RegMolehusband]

I've used Xero for nearly three years now. It's very good with a few minor niggles but I don't think these will affect your type of business.

They haven't particularly developed the product during my three years of use, they generally concentrate on APIs to extend the product's functionality whilst making themselves more money.

Note that your emails sent from within Xero will appear to have been sent from the following email address [e-mail]. Your own business email address won't appear in the header which I found a bit galling when sending invoices to customers.

Edited to add - I believe some large company servers find this email address to be a bit spammy and send them to the junk folder.

Edited by RegMolehusband on Friday 28th June 15:53

[pmanson]

ecs said:

Seeing what you mentioned about Amex, if you've already got a card then you can refer your business to yourself and claim an 8k points bonus for the referral. The points all go into the same pot so there's no harm in having two cards.

Aha! Great idea

[C Lee Farquar]

Dixy said:

Having done accounts on spread sheets for over 25 years had to change because of MTD. Accountant recommended Xero and have been surprisingly pleased.

Same for me, and I'm not easily pleased!