2007 May » Happy Accountant: Accounting Blog & Online Accountant » Page 4

Choosing Bookkeeping/Accounts Software
* Choosing bookkeeping or accounting software for your business or organisation is a big step. There is so much available on the market, with new vendors and products coming out all the time. So, how do you decide which is the best for you? How much you are prepared to pay? There is such range of [read more]
The Consequences of Being Inside IR35
*The financial consequences of being inside IR35 are mainly (there are other consequences) you lose the tax-avoidance facility of dividends. Essentially, if you are within IR35, you must calculate a “deemed payment” and pay NICs and PAYE (tax) on that deemed payment. The tax-deductible amounts that you can claim in travel and expenses will also [read more]
When to Register as an Employer
*As soon as you take anyone on where any of the following conditions apply, you need to register with HMRC as an employee. the employee already has another job the employee receives a pension (state or occupational) the employee will earn at or over the PAYE (tax) threshold the employee will earn at or over [read more]
SAGE VAT codes
*Sage uses the following codes for VAT: T0 – zero rate VAT T1 – standard rate VAT T2 – exempt (eg. stamps, insurance, aire fares, bank charges, financial services T4 – EC Sales T5 – lower rate VAT (eg. electricity, gas, women’s sanitary products) T9 – not involving VAT/outside scope of VAT (eg. suppliers that [read more]
Registering for VAT and Keeping VAT records
*You must register for VAT with HMRC. This can be done using a paper form or online. Once registered, you generally have to keep reocrds of: the VAT you charge on your sales (output VAT) the VAT you have paid on your purchases (input VAT) the total amount of sales excluding VAT the total amount [read more]
Using Excel for Accounts and Bookkeeping
*The great thing about MS Excel (and others say it’s greatest downfall) is that it is so adaptable and because it normally comes bundled with the PC you bought for your business, it’s cheaper than buying accounting software. For start ups and possibly for the sole trader or small limited company, it’s a very easy way of keeping track [read more]
Why have an Accountant?
*Because… Doing the accounts takes you away from your real business An accountant could do the job quicker and more accurately An accountant could save you money in the form of tax-savings as well as sometimes finding other areas for savings and efficiencies. Professionally produced year end accounts will be taken more seriously by banks and [read more]
What is the Difference between Bookkeeping and Accounting?
*The two really overlap: Bookkeeping is part of accounting. It is the recording of the day to day transactions of a business – either in “manual” books, or on computer software or spreadsheets. Therefore, bookkeeping can play an important role in the efficient running of a business: Purchase Ledger – A business needs to pay [read more]
Simple Bookkeeping
*You need three basic “books” (or ledgers): – a cashbook to record all cash/cheques/bank transfers going in and out of your business – a purchase ledger, to record details of all the purchases that you make – a sales ledger to record details of all the sales that you make (if you are a retail outlet, [read more]
Advantages of a limited company
*Obviously, the main attraction of forming a limited company is the “limited liability” of its owners, the shareholders, as it protects the personal assets of the owners. Should the company fail, the company is liable without limit for its own debts, but its shareholders’ liability is limited to the amount oustanding (if any) on their [read more]
What do you need to set up a company
*Essentially, before you begin, you need: a company name, which can be almost any name that has not previously been registered. a Director a Company Secretary (which cannot be the sole director) (or you could have two directors, one of whom could also act as Company Secretary) a shareholder (which can be either the director [read more]
Choosing Your Accountant
* Speak to your prospective accountant on the phone first and then, if you are still happy, set up an initial meeting – which should be free of charge. Ensure that they are professionally qualified and are current members of a professional body (Chartered Accountant (ICAEW/ICAS/ICAI), Chartered Management Accountant (CIMA), Chartered Certified Accountant (ACCA) for [read more]

Other Accountants 08/05/2007 Other Accountants Posted by Happy Accountant at 9:45 am No Responses Accountant *Institute of Financial Accountants The IFA qualification is aimed at small and medium enterprises. The qualification is at a lower level than a CCAB accountancy qualification. For that reason, fully qualified IFAs will only be part-qualified CCAB accountants. Association of International Accountants AIA members are qualified for audit. Institute of Cost and Executive Accountants The [read more] Full Article	The Difference Between the CCAB Accountant Qualifications 08/05/2007 The Difference Between the CCAB Accountant Qualifications Posted by Happy Accountant at 9:20 am No Responses Accountant *Institute of Chartered Accountants England and Wales (also generally applicable to ICAS and ICAI) The ICAEW is the largest professional accountancy body in Europe, with 128,000 members. It’s members qualify while working in practice and on qualifying, either stay in practice or move into industry. The majority of trainees come from university, but it is [read more] Full Article
Call Yourself an Accountant 07/05/2007 Call Yourself an Accountant Posted by Happy Accountant at 9:10 am No Responses Accountant *The term “accountant” is not a legally defined one. Therefore, while you have to be appropriately qualified to call yourself a “doctor”, anyone can call themselves an accountant. In the UK and Ireland, there are six major professional accountancy bodies, whose members have “chartered status.” Full membership of any of those six accountancy bodies, means [read more] Full Article	Be Happier: Work for yourself 04/05/2007 Be Happier: Work for yourself Posted by Happy Accountant at 9:55 am No Responses Random Friday Blog *Apparently if you work for yourself, you will be happier. Even though the wages are lower and the hours are longer, the flexibility and independence lead to far greater job satisfaction. The research, carried out by Professor Simon Parker at the University of Durham, also found that self-employed men worked more hours than self-employed women and that the self-employed [read more] Full Article
The Business Equation 03/05/2007 The Business Equation Posted by Happy Accountant at 9:40 am 2 Responses Bookkeeping This gives a definition of profits earned: Profit = Increase in net assets (excl drawings) + drawings – extra capital introduced. It shows the link between the amount of profit earned and the increase in net assets and drawings. Full Article	Drawings 02/05/2007 Drawings Posted by Happy Accountant at 9:15 am No Responses Bookkeeping *Drawings are amountsof money taken out of a business by its owner. Profits are only capital as long as they are retained in the business. Once they are taken out by the owner (appropriated), there is a reduction in the business’s capital. Following the previous example, if Tina had taken drawings of £150, then the accounting [read more] Full Article
The Accounting Equation 01/05/2007 The Accounting Equation Posted by Happy Accountant at 9:30 am No Responses Bookkeeping *The Accounting Equation is: Assets – Liabilities = Capital which is the same as: Net Assets = Captial. For example, Tina T invests £1,200 in her business. Therefore, the business has: Assets of £1,200 (because the money has now become an asset of the business). Liabilities of £1,200 Capital and no other liabilities. So, the [read more] Full Article

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