Saving Money » 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]

Reduce your Accountant Fees 26/10/2011 Reduce your Accountant Fees Posted by Happy Accountant at 9:00 am No Responses Accountant, Bookkeeping, Saving Money *If you have decided that you really cannot afford your accountant fees but you really don’t want to do everything yourself. What are your choices? If you are otherwise happy with your accountant, ask them if there is anything that you could do yourself that would reduce their fees. Move to a cheaper accountant Use [read more] Full Article	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
VAT Amnesty 23/09/2011 VAT Amnesty Posted by Happy Accountant at 9:30 am No Responses Saving Money, VAT *HMRC has had a VAT amnesty over the summer. This is the chance for those people who should have registered for VAT but haven’t to come forward and bring their affairs up to date with potentially reduced penalties as a result. For those already registered, you can also use the amnesty period to notify HMRC of previous errors [read more] Full Article	PayPal Accounting 27/07/2011 PayPal Accounting Posted by Happy Accountant at 9:00 am No Responses Bank Rec, Errors, Saving Money *If you are doing any volume of PayPal transactions at all, it’s probably easiest to look for accounting software that will handle PayPal transactions by data import or full integration. PayPal accounts would normally be set up as an additional bank account in your accounting software, (this will also give you the option of paying suppliers [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 Use a VAT Margin Scheme 26/10/2010 Why Use a VAT Margin Scheme Posted by Happy Accountant at 9:00 am No Responses Saving Money, VAT *VAT Margin schemes will save eligible traders money. This is because you only pay VAT on the margin, that is the different between the sale and purchase price. If you sell something “at a loss” then there is no VAT to pay on that sale. You can use a margin scheme on some goods and [read more] Full Article
Directors – Use of Home 28/07/2010 Directors – Use of Home Posted by Happy Accountant at 9:00 am No Responses Accounting, Corporation Tax, Limited Company, Saving Money, Tax *The situation of use of home is slightly different for directors than for sole traders. In this instance, it may be more straightforward and advantageous for the company to pay rent to the director for the use of their home. (Make sure that there is a licence agreement in place to cover the rental agreement.) The [read more] Full Article