Accounting/invoicing software vs an accountant?

nightrave

I am starting to work as a sole trader in a months time. I will be working exclusively for one specific company that is based outside of EU and will be invoicing that company once a month.

I've had a quick chat with an accountant here and they have quoted me 650Euros+VAT for the following:

1. To register your business as Sales Consultant with Revenue by completion and submission of Form TR1

2. Provide Excel template for me to complete sales and expense listings

3. Prepare 2018 Income and Expenditure Account

4. Prepare Income tax computation for the year from the above, and other relevant income and expenses

5. On agreement with me, submit to Revenue on Form 11

First of all I have no idea whether that is a fair price or not. Second - I assume instead of TR1 I can just register for income tax via revenue online myself and be done with it in 5 minutes.

Having in mind that I only will issue 12 invoices over the whole year I'd love to pick your brains on if it's worth engaging with them (or any other accountant) or rather use a SaaS tool that can just do it for me and submit the rest to revenue when it's time. I always prefer to use online tools rather than human interaction + excel spreadsheets.

Anu suggestions are appreciated!

antoinolachtnai

I would get this guy to do it for the first year.

His approach looks plausible and the price is keen enough. He will show you the way and it will save you a lot of time.

But it is really up to you.

What did he say about VAT registration?

nightrave

antoinolachtnai wrote: »

What did he say about VAT registration?

well as I will be invoicing and providing services for a company that is outside of Ireland/EU I don't need to register for VAT

antoinolachtnai

You have had advice to that effect? Or what makes you think that?

nightrave

antoinolachtnai wrote: »

You have had advice to that effect? Or what makes you think that?

So It seems that I still would need to register for VAT if I earn more than 37.5k a year for services, but wouldn't have to issue VAT as I am supplying services to companies outside of EU

Can't wrap my head around this though. If I have agreed to work for a company as a contractor for a certain amount a year and now have to register for VAT - does that mean:

a) I need to add VAT onto my invoices to them and therefore I will become more expensive
b) I will have to compensate VAT and issue an invoice for less
c) Third magical solution I am not aware?

antoinolachtnai

(C).

You can reclaim input vat in business related purchases. You invoice the exported services at the zero percent VAT rate.

Please don’t take my word on this. Get professional advice.

duffysfarm

the fee you have been quoted is not over the top imo. to be honest by querying it i think you would be doing the accountant and every other accountant a favour by doing your own accounts and not engaging one.

nightrave

duffysfarm wrote: »

the fee you have been quoted is not over the top imo. to be honest by querying it i think you would be doing the accountant and every other accountant a favour by doing your own accounts and not engaging one.

I am happy to engage with them as they are professionals. It's just as it is the first time in my life to get a quote for that, I have no point of reference and wanted to see if it is a fair one.

antoinolachtnai

nightrave wrote: »

I am happy to engage with them as they are professionals. It's just as it is the first time in my life to get a quote for that, I have no point of reference and wanted to see if it is a fair one.

As with anything it really depends on the quality of what you get.

It is half a day or a day of billing really, in any industry. It is pretty cheap for what you need.

katedebitoor

Sorry guys, advertising is not allowed.

crkcvnirl

nightrave wrote: »

I am starting to work as a sole trader in a months time. I will be working exclusively for one specific company that is based outside of EU and will be invoicing that company once a month.

I've had a quick chat with an accountant here and they have quoted me 650Euros+VAT for the following:

1. To register your business as Sales Consultant with Revenue by completion and submission of Form TR1

2. Provide Excel template for me to complete sales and expense listings

3. Prepare 2018 Income and Expenditure Account

4. Prepare Income tax computation for the year from the above, and other relevant income and expenses

5. On agreement with me, submit to Revenue on Form 11

First of all I have no idea whether that is a fair price or not. Second - I assume instead of TR1 I can just register for income tax via revenue online myself and be done with it in 5 minutes.

Having in mind that I only will issue 12 invoices over the whole year I'd love to pick your brains on if it's worth engaging with them (or any other accountant) or rather use a SaaS tool that can just do it for me and submit the rest to revenue when it's time. I always prefer to use online tools rather than human interaction + excel spreadsheets.

Anu suggestions are appreciated!

Would suggest you speak with an accountant regards the finer points of trading with non EU entities.



On the practical invoicing / finance records front I use WAVEAPPS.COM.

Easy to use, you can integrate a payment gateway that appears on invoices as a click button. I use STRIPE.


As you're trading outside of the EU have you given thought to how you'll manage wayward clients and potential bad debt collections?



Regards

dbran

The provision of services B2B outside the EU is outside the scope of Irish VAT and would not form part of the €37.5k threshold above which you are required to register for VAT. You may decide to register voluntarily of course to claim back vat incurred on goods and services.

€650 plus VAT seems pretty reasonable for the level of work involved. You could try and work it all out for yourself. But then how much time would you spend figuring it all out. Would your time be better spent doing what you are best at earning more money from your customers.

Dbran