[freelancr]

Just had a very nasty shock from my accountant. I started out with him when I started freelancing and became self employed, and he agreed to operate under a fixed fee of about £600 per year. Yet my accountancy costs were roughly £1200. In my first year I made roughly a £6000 profit, so he knows that I am skint and can't really afford it.

I have just decided to setup a limited company for my new venture, a uk hosting company, and asked for his help setting it up, and I am now nearly £600 lighter! At the time I was told it would cost £200. It appears £200 was just for the fees to do it with companies house, the rest was a fee for his time for that, and getting me VAT registered. Wish I had just done it my bloody self now as he didn't do anything special.

We haven't even started trading, and aren't looking to make a profit in the first year, so any more bills like this will cripple us financially. Ironically the most expensive service to budget for, that is most likely to send us under, is the bloody one that works out how much money we have made - or lost.

Because of this I have decided to do the yearly accounts, and the quarterly vat returns, by myself. I was planning on just doing it just using several spreadsheet files, but my business partner said it might be easier if we used something like Sage or Quicken. What do you use to do your accounts?

I think because we are a limited company, an accountant still needs to audit our accounts before we can submit them to the inland revenue, but I believe we can do the quarterly vat returns ourselves. Even though we will still have to pay an accountant to glance an eye over our figures, the fee he charges has got to be a lot less than the invoices he is randomly generating at the moment.

[Mr Fred]

get a decent accountant mate - fuck all that shit.

£75 notes a month. never had to worry- esp as limited - its just too much hassle.

[smallbeer]

Yes you should be able to do the quarterlies yourself after you've been shown how once. Just find a cheaper accountant to do your end of year.

But seriously, I know this place has gone all kindergarten but if you're worried about "going under" because after you've done a cash forecast you've realised you can't afford to run your business...don't you think you should rethink?

[freelancr]

Originally Posted by smallbeer

But seriously, I know this place has gone all kindergarten but if you're worried about "going under" because after you've done a cash forecast you've realised you can't afford to run your business...don't you think you should rethink?

I have done my research and realised there about about a million and one other web hosts out there, so it is very possible we may go under in the first 3 years, like many other businesses even in markets not so saturated. Its a possibility that I would be arrogant to dismiss outright.

I am just annoyed at my accountant cos he didn't even mention any of these prices when we were asking for his help. We set this up 3 months ago, and only now he wants another £350? At the beginning of the year when I was a sole trader he charged me £200 for a VAT return that all he had to do was look at and stick in the post, I hadn't spent or received any vat in that period so it was just was 0 on the form. Bloody expensive 5 seconds that was. He is just proving to be impossible to forecast a budget for.

Anyway... Software Suggestions?

[Call Catchers]

I own a small telephone answering service which has been running for 3 years so I now use Sage, and also a business consultancy which isn't complicated so for the last 2 or 3 years I've used a spreadsheet package called easy as 123 accounts. It cost £35 and is really easy to use. For a small business you just record sales and purchases and it gives you a P&L and tells you where to put the figures on your tax return so no more massive accountants bills. Not sure if they do a VAT version but worth a look for the money.

Sue

[urban1977]

my girlfriend works in tax and she charges £600 - £700 per return so you got a cheap accountant. She said £200 for a VAT return is pretty good!

if you dont wanna spend money on sage or excel you could always try openOffice

[badaboom]

I went to see my accountant and asked him to set up a spreadsheet that would make all our lives easy.

They charge us £70 a quarter for VAT but I asked them to show me how they do it the 1st time and since then I do it myself – cos I’m a tight git and it’s easy.

They charge maximum of £500 for year end accounts, which loads of people say that’s expensive – but they come highly recommended, which is critical.

VAT registration is easy to do online and takes 2 weeks to come through, don’t even think about getting an accountant to do it for you unless you like giving money away.

I get the impression that you will get stung if you don't give them the data already inputted on whatever system you choose, as some people just hand over a box of chaotic paperwork.