New business (accounts)

Peter B

I have currently started a business with a partner. The company is a limited company. At the moment income is far lower than expenses. We currently have an accountant but would ideally like to avoid using him and keep our own accounts. The accountant certainly was handy when setting up the company. We recently signed the B1 or B11 for the CRO (not sure which). Not sure if there are many other company issues which need signing / sending away.

Is it a good idea to avoid using an accountant? Is it possible to do ourselves? We have very few transactions each month? What else is entailed with taking this burden on ourselves?

Thanks

Peter

xha1r

Well I'd imagine the accountant issue is a matter of money. Accountant's are professionals and are likely to have a better knowledge of business legalities than you, and therefore it would be better to have your own accountant. Then again, if you have few transactions perhaps it would be better to do them yourselves.

If money was no object, I'd get an accountant.

However, if it's your first year in business I believe you need to be audited, which must be done my a professional. This may also apply for the next 3 years (not sure).

karangka

I don't think that you need to get audited as long as you are under the threshold. Check CRO website.

Having an accountant is a good thing. They know the ropes of business. Like xha1r said, if money is not an object you are much better off with an accountant. Don't look at it as expenses, look at it as an investment.

Unfortunately, during the shakey starting period of a business, money usually is an object. I suggest that you look after the day to day bookkeeping yourself in the meantime. Just shop around for an accountant to prepare the accounts and submitting them to the CRO. Not to forget, ask the accountant to look after the taxes. Keep the accountant out of day to day running of the business. In other words use them for only the legal stuff.

When your business has pretty much takes off or starting to take off, then call your accountant. By this time, the volume of transactions would have been multiplied. You don't want to spend your time organising the bits and pieces. You'd want to be on the road getting the sales in. Doing what you do best.

Its a tough world. All the best!

Sonnenblumen

Peter B wrote:

I have currently started a business with a partner. The company is a limited company. At the moment income is far lower than expenses. We currently have an accountant but would ideally like to avoid using him and keep our own accounts. The accountant certainly was handy when setting up the company. We recently signed the B1 or B11 for the CRO (not sure which). Not sure if there are many other company issues which need signing / sending away.

Is it a good idea to avoid using an accountant? Is it possible to do ourselves? We have very few transactions each month? What else is entailed with taking this burden on ourselves?

Thanks

Peter

Disagree even in loss making activities an accountant is required. Ideally every good company has a good accountant. Even in tight situations, an accountant is someone that might prove invaluable and help steer the company clear to overcome cash flow problems.

Our company accountant has exceeded our expectations and is immensely valuable for 'objective' analysis of what might be woods/trees scenarios.