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Need help with accounting.

  • 22-06-2022 7:42pm
    #1
    Moderators, Computer Games Moderators Posts: 15,134 Mod ✭✭✭✭ FutureGuy


    Hi all,

    Started a business and I'm done waiting for help from Paul Partnership to get me started with accounting. I went headfirst into starting a small business and, hands up, have left the accounting piece behind. Had I bogged myself down with bookkeeping, I KNOW I'd never have even started.

    I've kept receipts, sales and purchase details, banks statements etc but I need to formalize about 6 months of accounts.

    What's my best option to catch up? Sit with a bookkeeper and just pay until it's done? Find a good booking 101 resource and do it myself (recommendations welcome)?

    Thanks all.



Comments

  • Registered Users Posts: 991 ✭✭✭ downtheroad


    Look for a bookkeeper, rate is probably €20-25 an hour. They'll get 6 months of records up to speed for you for a couple of hundred quid, which will be a business expense and allowable as a tax deduction for you.



  • Registered Users Posts: 998 ✭✭✭ hold my beer


    If you're any use with spreadsheets, doing it yourself can be an option. A lot of people hate doing it though.



  • Moderators, Computer Games Moderators Posts: 15,134 Mod ✭✭✭✭ FutureGuy


    Yeah I am fine with excel - I just need to get to grips with the format and what needs to be added where. It's like I'll learn fast when doing lesson 1-1000 but I need a lesson zero which explain the general setup and layout to make sure I'm doing it all right.



  • Registered Users Posts: 127 ✭✭ Beatty69


    Buy a simple software, I recommend Surf Accounts, get a book-keeper to help you set it up and show you how to use it and then keep your records in there. This does depend on how much time you have, if you're very time poor might be worth paying the book-keeper a couple of hours every week because they would do it a lot faster than you would.

    Then every year get an accountant to prepare proper accounts for you.



  • Moderators, Computer Games Moderators Posts: 15,134 Mod ✭✭✭✭ FutureGuy


    Went to an accountant this morning and they said the charge for year end is 2700. Cannot pay that so will have to go a cheaper route.

    Is there anything here that I could do myself with time and study?

    • Form 11
    • CT1 Return
    • Limited Company Accounts
    • B1/year end pack


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  • Registered Users Posts: 3,034 ✭✭✭ Furze99


    Can't advise re limited company accounts, but I've traded as a sole trader for a couple of decades and always done our own accounts and returns. It's easy enough, once you research the basics and then keep to a regular schedule. Use software called QuickBooks for years, easy to produce basic profit & loss calculations, VAT returns and so on. If you're trading as a limited company, likely more complicated and costly......... which goes with the territory and has to be part of a conscious decision when starting out. No point in complaining about accountant costs afterwards :)



  • Registered Users Posts: 2,336 ✭✭✭ Deeec


    Why did you set up a company? It sounds like you are not going to be making much profit.

    A cheaper option would have been to set up as a sole trader for an initial year or so until you see if the business is viable.



  • Moderators, Computer Games Moderators Posts: 15,134 Mod ✭✭✭✭ FutureGuy


    Given the nature of my business, was advised to set up a Limited company to provide protection. However, also advised that end-of-year accounts would be about a grand.



  • Registered Users Posts: 335 ✭✭ POBox19


    It's all about keeping good records, sales, debtors, purchases, creditors, banks, payments, receipts, equipment, expenses, wages, stocks, vat etc... No cash should leave or enter the business without a record. Spreadsheets are good for all those. If you spend more time doing books then actually doing business you may need to invest in a book keeper. If you are setting up a limited company you should engage an accountant as they can do all the forms to set you up. It should be money well spent for the time saved and their imprimatur on your annual accounts and financial advice.

    Good luck with the business.



  • Registered Users Posts: 2,336 ✭✭✭ Deeec


    Can you give me a rough idea of what you do and why you need the protection of a Ltd company - this may have being wrong advice for a start up. Alot of people seem to think they are better off being a ltd co when they would actually be better off being a sole trader.

    Final accounts and filings would cost about a grand. But you would have to actually do the book work and provide this to the accountant - VAT returns, wages, provide basic accounts. If you want all this done for you the quote of €2700 sounds reasonable - nobody would do all this for €1K. There is alot more work involved in in the accounts for a limited co versus the accounts of a sole trader.



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  • Moderators, Computer Games Moderators Posts: 15,134 Mod ✭✭✭✭ FutureGuy


    I have a small business selling collectables - trading cards, retro games, toy figures, movie memorabilia etc. When I initially started, it was an online clothing company for fans of different passions and, in order to protect my personal assets from a litigious company, I went the Limited company route. It also covered forays into other areas I may make down the line.

    Maybe it was the wrong advice, especially since I'm now doing well since I pivoted to the collectables.

    I would be good with figures and am sure I'm able to do my own bookkeeping. It's just the end of year piece I'm struggling with. Given my turnover, 2.5k makes no sense for me in year 1



  • Registered Users Posts: 4,918 ✭✭✭ Sunny Dayz


    Why not engage a bit further with an accountant - ask them what you can do to keep costs down. If you can get costs down by doing some of it yourself - what excel template, bookkeeping software would they advise you and can they provide you with a bit of support starting out. Yes it is costly starting out but you won't be long finding your feet.



  • Registered Users Posts: 2,336 ✭✭✭ Deeec


    It probably was good advice for the initial business given the threat of copyright and litigation. I cant see any advantage given that you are trading collectibles - I would imagine this is low value stuff you are selling. Being honest with a turnover of €2.5K there is no point you trading as a Ltd company.

    Do you foresee this business to grow significantly in the future - if not then just scrap the company and trade as a sole trader. You could probably do all the filings yourself as a sole trader,



  • Moderators, Computer Games Moderators Posts: 15,134 Mod ✭✭✭✭ FutureGuy


    My apologies, the 2.5k is in relation to the cost of the end-of-year accounts.

    My turnover is about 2700 per month. I purchase everything with cash I make from the week before (I have no debit or credit). I'm also not drawing any income from the business. I'm spending everything I make on more products and marketing. My turnover would be higher if I had a business loan which I'm working through at the minute.

    I started with almost nothing but now I have probably 8 or 9 k in stock which allows me a lot of really solid ways to expand.

    If you were to take into account all my money in and out since I incorporated, it all fits on about 300 rows in excel.



  • Moderators, Computer Games Moderators Posts: 15,134 Mod ✭✭✭✭ FutureGuy


    I have a track of absolutely everything, its just I don't know what to do with it - as mentioned, sitting with a book keeper would be a good idea to get my head around it. That's for July.



  • Moderators, Computer Games Moderators Posts: 15,134 Mod ✭✭✭✭ FutureGuy


    He was saying that they either do it all or do none of it when I asked about handling some aspects. They use Surf which I've started looking at.



  • Registered Users Posts: 2,336 ✭✭✭ Deeec


    Ah thats good - Are you making a profit yet?

    I take it you do have another income which you live on?

    I would advise you to sit down with an accountant and explain your situation in full - both from a business and personal taxation view. They will be able to advise if you need to be a ltd company. It would be alot easier if you could trade as a sole trader. I dont actually see any advantage to you trading as a LTD at the moment unless you have a high income.



  • Moderators, Computer Games Moderators Posts: 15,134 Mod ✭✭✭✭ FutureGuy


    Yeah, I'm making a good profit which allows me to reinvest heavily in stock and market the business. We have another income which is social welfare (I'm working with them to get off social welfare but it just about pays the bills and we need to be getting money from business pretty soon).

    The accountant there said I really don't need to be a company based on what I'm currently doing but that curtails some of my ideas for next year.



  • Registered Users Posts: 3,034 ✭✭✭ Furze99


    Personally I think a limited company setup on a current turnover of c€36K a year is daft. Unless there's some compelling reason why you might be at risk of being sued by a competitor. But if that's the case, you'd have to wonder about the business model.



  • Registered Users Posts: 4,292 ✭✭✭ El Gato De Negocios


    Completely off topic but can you PM me your website (if you have one) please. I collect horror memorabilia and associated bits so would love to be able to support a small Irish business if I can.



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