Ok so im self employed and have done my own tax returns for the last couple of years. Ive just asked an accountant to do my recent return under the understanding that they will cliam back for things I dont know how too.

Can you guys tell me the advantages of having an account in experiences.

Cheers ben

They will ensure that you are maximising profit in your P&L which is good for when you come to get a mortgage. At the same time they will minimise your tax liability. Also they will ensure that you are capitalising what you can to maximise your balance sheet which is beneficial when you want to become a limited company for tax purposes.
The best thing an accountant will do is take time to explain your accounts to you so that you understand them. Then you’ll know how to improve your business to make it grow on solid foundations.

After a lifetime of civil service salary I went self employed three years ago and the best thing I did was talk to a little old man who looked like he came out of a Dickens novel. He started me thinking correctly. He set me on a course of behaviour rather than looking at the situation retrospectively. He has saved me a fortune in several ways. Basically, if I do things as I go along it reduces my/his costs and helps plan to avoid costs penalties. Find one who doesn’t blind you with technicalities but helps you understand what the implications of actions are. I’m not at all numerate but I’ve enjoyed feeling in control and its in no small way to my dwarf.

Do your own for a bit with something like DIY accounts, (google it) . It’s a set or interlinked spreadsheets that you input expenditure, sales, and so on into and it spits out a tax return.

Also, buy “small business Tax saving tactics”

It will save you the cover price many times over.

When you have done your own for a bit, then get an accountant.

Exactly what I did and the accountant I just got, is well impressed so far.

My relationship with my accountant is scarily like this:

[video]http://www.youtube.com/watch?v=TwF88OeHQ38&sns=em [/video]

An accountant won’t tell you how to run your business – mine has only a vague idea what a bicycle is. What he will do is save you a bit more money than he costs, and make sure you don’t save up trouble for yourself down the line – hopefully. I say hopefully because before I found my small but competent one-man accountant I was with a bigger firm who screwed up completely.

Always make sure you actually know and understand what your accountant is doing, don’t just trust them.

If using an online service I would recommend Freeagent.

In fact let me know if you want a referral as it will save you 10% (and me too as a referral bonus).

It’s only about £24 a month but is fully featured including bank feeds (dependant on your bank) and links to HMRC

Thanks guys some really good answers there 😉

It depends on your appetite for risk, mine is higher than the Accountants therefore I tell them how/what we are doing – they just make sure I stay within the law.

Suits me this way.

Most information can be obtained through Google-ing.

Always make sure you actually know and understand what your accountant is doing, don’t just trust them.

Remember that the accountant is only your agent and ultimately it is you that is responsible for your taxes. If they cock up then you still have to pay the true tax liability the you’ll get is fee’s back through the courts.

As Coolhandluke and I have said make sure the accountant takes time to explain your accounts to you so you understand them.
Myself and other accountants are moving away from the once a year accounting and instead providing quarterly management accounts so that you may see your performance to date and take action sooner to improve the business rather than wait to the yearend when it is often too late. The yearend annual accounts and returns just become a process of completing the 4th quarter. Clients are finding this a much better approach with stronger relationships built.