I'm going into business with a friend of mine and my contribution will be to look after the books. Does anyone know of a good, simple accounting program?
Sage is probably the best known and respected PC accounts software and they have a number of different solutions depending on company size, many of them are cloud-based. Possibly Sage Instant Accounts or, if you need Stock Control and a 2 user license, Sage Instant Accounts Plus. You can submit the VAT returns online to HMRC from within the program and you shouldn't encounter any issues should your company books be audited.
We use Excel. Massive multiple linked Excel sheets grabbing data from all over the place. Debugging nightmare when it hits the fan
Seriously in 2015 you use spreadsheets oh dear, I can tell it's not in your control though There was a large crane manufacturer based in Scotland back in the late 1980's I think I posted about it on here before, not only had the accountant broken the massive multiple linked lotus 123 sheets that he had to use to report to head office overseas (he was trying to hide something I think) but when I fixed it for him his accounting system was so bad that he paid us twice, and that was after he had written to us complaining about the size of the bill
We do unfortunately, slow and cumbersome springs to mind! Yea think we chatted about it previously. Our accounts seem to merrily plod along with it though.
I do mine in Excel, or rather the wife does I think if you're a small company you can get by using an Excel spread sheet, I must admit though its as clear as mud sometimes when I look at it. Its all about keeping on top of the paperwork, I can already see that if you don't keep updating on a regular basis that you could very easily end up in a financial mess. Get yourself an accountant to do the hard bits, his fee will be more than covered if he can do some imaginative deeds for you, all above board of course
I use Excel to keep track of my (simple) company accounts, I also use Excel to keep track of my daily personal expenditure, the contents of my wallet has to match the spreadsheet at the end of each day. Different area I know, but I keep track of my bank accounts using Microsoft Money, an excellent piece of software that was sadly discontinued a few years ago, way better than the Quicken software that I had used previously.
Thanks for the ideas folks. It will be UK based. I was thinking about setting up an excel spreadsheet and hyperlinking things like receipts etc as we're are only going to be small (one chip shop) for a start. The intention though is to open a 2nd within 18 months. 4-5 years is to open a pub / restaurant which will be run separately to the chippies. We will be a Ltd company. I'll take a look at Sage but I'll talk to my partner and see how we want to play it, see how much an accountant will cost us.
I used QuickBooks in the past much easier than Sage but Sage is still very good. Accounting for the most part seems simple but it's not, the reason it's not is moving periods of time, basically 'what happened when' and 'when should I have to account for it'. Sounds like you will have assets Stu, that means you need to run an asset register and account for depreciation of said assets and that gets complex depending on the scheme you use and is usually the reason that people employ accountants in order to get that bit right, one man service businesses are simpler but even in my case my situation was more complex than a simple one man service business, I did employ an accountant and it cost me about 400 quid a year, but all he was doing was checking what I had already done, he just provided an air of professionalism. As a Limited company, depending on profits, you might need a professional audit, however that is unlikely unless turnover is very high, an audit costs a lot more than simply getting an accountant to check your books and do your returns. Also watch out for VAT and decide very early on if you need to be VAT registered, if at any time during your financial year your turnover looks like it will exceed the VAT limit you need to be VAT registered even if at the end of the year your turnover does not justify being registered. I've been out of business for over six years now so my memory is getting weaker and some of the rules will have changed particularly the limits which is why I have not quoted numbers but I wish I was still in business even with all the stress it was far better then 9 to 5.
Not even heard of an asset register! To be honest I'm completely new to all of this but it seemed like too good an opportunity to pass up. My mate is Michelin trained chef and had a restaurant before but due to circumstances (landlord was a fellow restaurant owner and didn't like the competition in the end, forcing my mate out) it went under. This is his route back into the game and I'm along as partner. He ran the books before but hated it, I'll obviously talk to him again on our return but obviously wanted to get my head round things so I don't look a complete duffer!! Good tip about the VAT and I'll look at that Quick books as well. I'm genuinely excited about this venter
Take-away food used to be VAT-free but if it is served hot then it is subject to VAT at the standard rate - to paraphrase HMRC's web site on the subject. With that in mind, I think it's probably an odds-on certainty that you'd need to register - if your business turns over, or is likely to, £81,000 or more a year, then you need to be registered for VAT. At least you'll be able to offset the input VAT on (non-food) supplies that you purchase against your output tax charged to customers.
Having a working knowledge of accounting principles is a life skill in my opinion something everyone should learn, you will also become very familiar with filing systems, managing those little bits of paper that you will collect from everywhere is extremely important and the better you do it the easier the whole accounting process is.
I end up with a pile of paper and receipts by year end, Jim and then I need about 4 days to sort it out for the accountant. I know I should keep up with everything on a weekly basis but I am too knackered after driving all week and my wife and kids need attention when I am off also. We are all eating and we have a roof over our heads so I am grateful to be healthy and productive.
I'll check it all with my mate to make sure we're all proper and above board, thanks for the info though
