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Does anyone do their own accounts?


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Evening all, 

I’ve been reading through the forum posts and doing a little research, but I was curious to know whether anyone did their own accounts - I suspect the answer is no, and the value added from an good accountant ought to outweigh the opportunity cost of doing it yourself, but welcome your thoughts?

Having had another small business previously and submitted micro accounts, it didn’t seem too onerous. 


I’m currently in the process of completing on my first property which will be a BTL in a SPV. Actually due to complete Friday and hopefully the first of many, being long term plan to build a portfolio of rentals.

 

Many thanks,

Richard

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Hi Richard, 

I don't do my own. I have an accountant, he is an old school friend so only charges me a small amount, that being said I would always use someone qualified. The cost can be off-set anyway so it's crazy in my eyes to do your own. Not to mention with ever changing rules and their knowledge on what you can and can't do pays for itself.

I don't believe it to be onerous, my trial calcs are often accurate but you dont want to forget to 'carry the one' so to speak and end up getting investigated.

Hope this helps

Cheers

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I do mine! I keep a good record on excel all year and then its just a matter of filling in the details on Tax Calc - its really simple and I don't feel the need to pay someone else to do something that in the end is my responsibility.

I don't think you even need a proprietary software program now as HMRCs online site is better than it was, but if you do they are not expensive - and tax deductible!

Given we will be moving to quarterly reporting, I think it is even more important to do it myself :)

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  • 3 weeks later...
On 10/10/2020 at 1:31 PM, julia urquhart said:

I don't think you even need a proprietary software program now as HMRCs online site is better than it was

Hi Julia

Nice idea but HMRC don't want you to use their service if you have an investment company

https://www.gov.uk/guidance/corporation-tax-use-hmrcs-free-filing-software - Scroll down to companies that cannot use this service.

 

On 10/6/2020 at 7:33 PM, r2barwell said:

Having had another small business previously and submitted micro accounts, it didn’t seem too onerous. 

Richard - It is personnel preference but many property investment company's report as small companies rather than micro entities despite still meeting the criteria to be a micro entity. The reason is that the balance sheet plays such as key part in property investing companies and reporting as a small company allows you to revalue your properties each year at fair value - arguably giving a truer reflection of the value of the company and its assets. If you report as a micro entity then you carry the properties at cost meaning you don't revalue them each year. 

I would say just take care if you are thinking of doing it yourself. If you are buying property regularly and conducting refurbishment then you will probably build up a decent chunk of losses that can be carried forward to offset against future profits. If you mess this up then it could easily cost you a lot more than the price of a good accountant. 

David M Slater ACMA 

Accufy Accounting  - Proactive accounting for property investors 

0208 242 4926    info@accufy.uk

 

 

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  • 3 weeks later...

I've just signed off my third year of accounts prepared by an accountant. I'm only a small ltd co with three properties growing at about 1 per year.

Turnover was about £12k and accountants fee £1320 which seems steep to me. I can mimic their balance sheet data from my excel records with ease so I'm tempted to bring the accounts in house. I'm retired so relatively time rich - can it be that difficult to do a balance sheet and file a CT600?

I've got 3 years worth of  professional worked examples to follow.

I'm not doing significant refurbs so the possible pitfalls mentioned above.

What does the team think?

Bob

 

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Hi Bob

You could quite easily beat the price your accountant is charging you. You should ask yourself are they doing a good job and adding value by talking about the future and where you want to get to or are they simply completing your annual statutory accounts? Hopefully over the years they should have made recommendations that have saved you in tax and therefore offset some of their costs? If not to most of these questions you should consider looking elsewhere.

Remember that although you can look at historic accounts to work out how to do future years there will be changes to tax that you will need to be reading up on and to ensure you take into account going forward.

When making the decision to do your own accounts make sure you factor in the cost of whichever software you will use to make a fair comparison with going solo or using an accountant.

Best of luck with whatever you decide on.

David M Slater ACMA 

Accufy Accounting  - Proactive accounting for property investors 

0208 242 4926    info@accufy.uk

 

 

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On 10/6/2020 at 7:33 PM, r2barwell said:

Evening all, 

I’ve been reading through the forum posts and doing a little research, but I was curious to know whether anyone did their own accounts - I suspect the answer is no, and the value added from an good accountant ought to outweigh the opportunity cost of doing it yourself, but welcome your thoughts?

Having had another small business previously and submitted micro accounts, it didn’t seem too onerous. 


I’m currently in the process of completing on my first property which will be a BTL in a SPV. Actually due to complete Friday and hopefully the first of many, being long term plan to build a portfolio of rentals.

 

Many thanks,

Richard

Don't do your accounts yourself! A good accountant will save you your fees many times over! 

A good accountant will have had training, and will deal with HMRC every day. They'll know what you can and can't do. If they don't know something, they'll know where to go for the information. 

With accountants, it's important be proactive. Ask the question, how can you save me money on tax? 

As you grow to 3/4 properties, you'll want to employ strategies like a holding company or different share classes. You can't do this yourself, you need a professional

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Vin Gupta
Property Investor and Developer
UK Property Blog: https://evolutionblogger.com/article/uk-property-articles
Travel Blog: https://soulfultravelguy.com/

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