Sole Trader Accountant / Online Accountant

A question about : Sole Trader Accountant / Online Accountant

Hi, I am looking for some advice in regards to an accountant for a sole trader, online or not... or feedback from anyone who may have used an online accountant in the past.

I will still be in full-time employment that will continue under the PAYE scheme.

In regards to being a sole-trader, this will be as part-time and on an online basis only. I will not hold any stock and I purchase the stock from my supplier once the customer places the order - based on this, I have no issues entering the data into an accountant package or excel, if this helps lower accountancy fees.

Apart from sales and stock purchases, the only other transactions will be for webhosting, advertisement and maybe some office supplies - so should be quite easy to keep track of this and enter into any accountancy package.

Anyone who knows more about this or has been through this in the past, any advice or feedback would be appreciated.

I know it is said, when it comes to accounting, you can get what you pay for.. initially profits are going to be low, no VAT etc. required and may look to move accounting etc. if the business does grow.

Thanks.

Best answers:

• Do you know anyone already in business (relative, colleague etc) who could recommend their own accountant?
  Unless you get a recommendation, then probably safer for you to look for a properly qualified accountant. You don't have to pay more, some qualifieds are cheaper than unqualifieds! Don't forget that accountancy isn't a protected profession, and literally anyone can call themselves an accountant and set up a firm of accountants. You are best to be looking for a "chartered" accountant - there are four main UK bodies of "chartered" accountants. At least then you know they're properly qualified, experienced, have insurance, etc.
  Local or online makes no difference really. It's just how you prefer to work, whether you prefer "face to face" or are happy with email/phone communications. Most accountants work both ways, but some will be online only (either too far away or don't have an office) whilst some will be "face to face" only who don't use the internet or online systems too much.
  Prices aren't necessarily more expensive or cheaper one way or the other. Massive variation in pricing between accountants as it's a very open market.
  Best thing is to choose wisely. Contact 3 accountants (maybe a local one band band, an online firm, and a local larger high street firm), talk to them, ask for their charges, get a feel for what they can do and how well you get on with them. Choose the one you feel most comfortable with. If you're uncertain, choose another 3 assorted firms and do the same. You'll get a feel for the services offered, charges, etc., and then should be able to choose one.
• If it will be simple and easy to track then will you really need an accountant at all?
• Thanks for the advice. I was contemplating going it alone as well, especially initially as I don't think that there will be any complications.. I will do a little more research, maybe speak to a few accountants as well and see how we go..
• It's just a thought, and many will disagree, but perhaps just keep track of your income and record receipts first, then see how it goes. If you become successful (and I hope you do!) after 6 months or so, then that might be a good time to look into an accountant.
  I went through a similar debate in my own mind a few years ago when I did 'side jobs'. I initially did so few (less than Ј1000 a year) that it wasn't worth doing anything about, and would only annoy my main employer who would have to make adjustments to my PAYE scheme. They don't tend to like doing that because they normally go to an accountant who calculates the required payments for the year. So if you go to them one month and say 'I've earned xxx separately this month', they'd have to recalc your contributions. Imagine doing that every month and they'd get annoyed (that's what I assumed).
  What's great is that you won't be VAT registered, as I'd have a completely different response, but as you'll be starting up and not knowing how much you'll earn, just keep track of your business costs. If it doesn't work out, there's been no financial headache, if it does work out (very well), you could leave your full time employment and go it alone, knowing that you've recorded all necessary costs ready for an accountant. If you don't want to leave your full time employment, your employer (if you're really lucky), might allow employing you as a contractor/temp, so they pay you without being on a PAYE scheme and you deal with your own TAX affairs.
  Personally, I've been self-employed/sole trader for 3 years now and have always done my own books. I have to say my transactions are pretty simple:
  Each job I get paid per hour, buy two items for the client and send an invoice.
  Initially I used spreadsheets to track income and make invoices, but when I got busier that became a chore. So I tested 10 online services which:
  Record time spent on projects
  Record expenses for projects
  Creates invoices
  Records payments received
  Records other business expenses (website costs, equipment, etc.)
  It was tedious but I found the perfect fit and it only costs around Ј7 per month - some were Ј30 such as Accountant friendly Sage.
  Using this online service, I simply ask for income/expenses during a tax year and submit it to the gov website. They say how much tax I owe and I pay it. It was confusing the first time but I have to say that the phone support for income tax is pretty great and they're very helpful.
  I hope that helps and I didn't mumble on too much!
• I went self employed a couple of years ago and have found that submitting tax returns myself is fairly straightforward. I think that the key is spending a bit of time on HMRC's website which is really good to tell you what you can and can't claim as an expense. Just remember that things need to be "wholly and exclusively" for the business and you shouldn't go to far wrong (although check the HMRC site which has good guidance on this).
  Its really all about good record keeping. Money coming in married up to invoices and money going out married up to receipts. I use a rather excellent app on my IPAD called ExpenseTracker (I'm sure there are lots of other ones as well!), that allows me to input all of my expenses / money coming in and save them with a photo / pdf of the receipt / invoice.
  My business has worked pretty well, but there aren't that many payments in / out so it is pretty straight-forward and all you need to do on the tax return is put in turnover, expenses and capital expenditure.
• if you do go down the accountant route, we're happy with our online service for our Ltd Co., they do a sole trader option too. have used them for nearly 3 years now with no issues.
• Do you have any large companies nearby who take on graduates as trainee accountants? Manufacturing companies or the like?
  At the firm I work for, we encourage all our newly qualified accountants to take on a role in the community. This can be a charity, club or a small business.
  When I completed my exams I did the accounts for a school, then a playgroup, then a sports club and finally a furniture business.
  It takes a few years out of uni to get their professional qualifications but the experience is priceless. I really enjoyed it too. Makes a change from signing passport photographs!
  Might be worth looking into?