Accountant » Happy Accountant: Accounting Blog & Online Accountant

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]

DIY Accounts 25/10/2011 DIY Accounts Posted by Happy Accountant at 9:00 am No Responses Accountant, Accounting, In Business, Saving Money, Saving Time, Tax *I’ve blogged previously about why you should have an accountant. However, when trying to cut costs (and who isn’t, these days?), often business owners look to cutting accountant fees. They either fnd a cheaper accountant, or they do without one altogether. Unless you require an audit, there is absolutely no obligation for a business to appoint an [read more] Full Article	Year End Accounts Checklist 24/10/2011 Year End Accounts Checklist Posted by Happy Accountant at 9:00 am No Responses Accountant, Limited Company *Traditionally, accountants do a number of tasks in completing a set of accounts & tax returns. Here are a few of them. (Note that some of them may not apply to all businesses. For example, sole traders would not have to submit accounts to Companies House. If you don’t hold stock, then stock-takes and stock [read more] Full Article
Most Innovative Accountant Nomination 21/10/2011 Most Innovative Accountant Nomination Posted by Happy Accountant at 9:30 am No Responses Accountant, Random Friday Blog *Last month, I discovered that the very lovely people at The Book-keepers Forum had nominated Figurate Ltd for an award. Just to be nominated is absolutely brilliant and I feel very honoured to have been so. To vote in the awards, please visit the website. (Note that your vote is not confirmed until you click [read more] Full Article	How I don’t use Twitter 23/09/2011 How I don’t use Twitter Posted by Happy Accountant at 8:30 pm No Responses Accountant, Random Friday Blog *Yesterday, Mark Lee (BookMarkLee, tax advice network, speaker & writer on social media for accountants, tax, and practice positioning & development), had a little Twitter Competition on the subject of Why Bother with Social Media. He asked: Any accountants who’d like a mention during my talk @ #clouda21 , please answer the Q: Why should [read more] Full Article
Umbrella Company Confusion 24/06/2011 Umbrella Company Confusion Posted by Happy Accountant at 9:00 am No Responses Accountant, Limited Company *This week’s blog posts were inspired by a recent question on AccountingWEB. It seems that even accountants can be confused about what Umbrella Companies actually do. For that reason, it’s important to use an accountant who actually knows about the practicalities of contracting and IR35. Most accountants will be able to deal with bog-standard limited company [read more] Full Article	Software and Your Accountant 26/05/2011 Software and Your Accountant Posted by Happy Accountant at 9:00 am No Responses Accountant, Bookkeeping, Saving Money, Software *As in my previous post, it’s always best to consult your accountant regarding your software choice. He/she may have no opinion, in which case, you haven’t lost anything. However, they may be able to give you some recommendations, or point out why your choice is not suitable for your circumstances. Additionally, if used correctly, bookkeeping [read more] Full Article
Why do a Bank Reconciliation 05/02/2008 Why do a Bank Reconciliation Posted by Happy Accountant at 9:00 am No Responses Accountant, Accounting, Bank Rec, Bookkeeping, Errors, Saving Money *The point of carrying out a bank reconciliation is to check that nothing has been missed from the business’s records and also to ensure that there have been no bank errors. A business’s cash book will rarely agree to the bank statement and it can be easy to miss transactions, such as direct debit payments if [read more] Full Article