Re: advice on small business accounts

On Tue, 20 Dec 2005 14:32:30 GMT, DoobieDo <dave@xxxxxxxxxxxx> wrote:

>In article <1135081477.293978.70710@xxxxxxxxxxxxxxxxxxxxxxxxxxxx>,
>mikemnnn@xxxxxxxxxxx cleared their throat and muttered...
>> I'd be grateful if someone could give me some advice.
>>
>> A friend of mine is a sole trader. He does around 20 jobs a year (each
>> taking about 3 days in total), often for foreign clients. He employs an
>> accountant to look after the financial side of things costing him £300
>> per month.
>>
>> Things haven't been going well recently, work has been slow and he's
>> looking to cut his overheads. One place where he could do this would be
>> handling the accounts himself, thereby saving himself about £5k per
>> year. Is this a sensible idea? Just how difficult would it be to handle
>> the accounts himself, and is there any legal requirement involved? Do
>> you need to be a qualified accountant to satisfy the needs of the
>> inland revenue? It just doesn't seem right that the accountant is being
>> paid a regular fee even when no work is coming in.
>>
>> Many thanks in advance
>>
>>
>
>60 days work a year and he's paying his accountant £5k? They saw him coming!!
>
>there's a few peeps on here that'll snatch his hand off at less than £300 per
>month. ( how does 300 * 12 = 5000? )
>
>how difficult would it be to handle the accounts himself? - better asking him
>if he can do it...
>
>qualified accountant? = not needed, the Revenue will do all the work free if he
>takes his books into his local office and goes through them with the Inspector.

If he's paying the accountant 300 pounds a month and can save 5,000
pounds a year what is the extra expense? Or is this an example of how
good the friend would be at doing the accounts?

Take no notice about the Revenue doing the accounts for free. Even if
they did they wouldn't be much help with the tax. Most Revenue staff
know very little about tax.

--
Peter Saxton from London
peter@xxxxxxxxxxxxxxxxx
.

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