Accounting

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]

How to Register as an Employer 04/03/2008 How to Register as an Employer Posted by Happy Accountant at 9:00 am No Responses Accounting, Bookkeeping, Limited Company, PAYE&NIC, Tax *It is generally possible to register as an employer by telephone or email (if special circumstances apply, you may have to register via and HMRC office). Either way, you will need the following information to hand: general information about yourself and your company (including your national insurance number and UTR number – unique taxpayer reference [read more] Full Article	Online Banking 08/02/2008 Online Banking Posted by Happy Accountant at 9:00 am No Responses Accounting, Saving Money *Online banking is now normal for many individuals and businesses. It is great for keeping right up to date with your bank transactions. It’s also a great way to save money: many banks will charge business customers for processing cheques (either drawn by the business or paid in), however some banks will not charge for [read more] Full Article
Things to look out for when doing a bank reconciliation 06/02/2008 Things to look out for when doing a bank reconciliation Posted by Happy Accountant at 9:00 am No Responses Accounting, Bank Rec, Bookkeeping *The company’s cash book may require the following adjustments: direct debit payments and standing orders directly to or from the bank account may not have been entered into the cash book bank interest and charges may not have been entered into the cash book. Items which may have been included in the cash book but [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
What is a Bank Reconciliation 04/02/2008 What is a Bank Reconciliation Posted by Happy Accountant at 9:00 am No Responses Accounting, Bank Rec, Bookkeeping A bank reconciliation is simply a checking exercise to ensure that the business can “agree” their records to the balance on their bank statement. It is normally done each time a bank statement is received. (It is possible, but highly inadvisable to leave it until the year end) Full Article	Bad Debts subsquently repaid 10/01/2008 Bad Debts subsquently repaid Posted by Happy Accountant at 9:00 am No Responses Accounting, Bookkeeping Occaisonally, a bad debt that has been written off may be paid. If the payment occurs in a later period than the write-off, the amount paid should be recorded (in the period that payment is received) as additional income in the profit and loss account. Full Article