Whats the best way to keep my accounts?

Whats the best way to keep my accounts?

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HI there folks, this is my first post and i am certainly no accountant so please bare with me.

I have owned a retail car business for the last 3 years and just recently taken on a tyre business. Both going well, thats not the issue. Its accounting for them which is perplexing me! Both companies are now separate entities and are limited companies.

The vehicle sales company is VAT registered

I have a few questions.

What accounts am i entitled to keep and what is the best and EASIEST way to formulate and set up these account spreadsheets, so that at the end of the month i can just plug the numbers in and figure out my profit and loss. Is there a template available?

The tyre business is not VAT registered, fyo

Again, what the best way to account for how much money the business is making. Do i have to show an opening stock level? I ran the tyre business as a sole trader/partnership for the first 2 months before becoming ltd, thus, i can obviously count how many tyres i have, but how do i value them, as some have been sold, more have been bought etc?

Also, another thing on my mind is how do i account for wastage with the tyres?

I appreciate there is not much info here, but it's a start and would really appreciate some help on this matter.

many thanks,

Jon

Replies (22)

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By Mouse007
05th Dec 2013 20:41

I'd love to help

Free initial consultation, no obligation during which we can discuss fees.

PM me your contact details.

 

 

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By ShirleyM
05th Dec 2013 20:57

Your accountant can help you with this

Find out what he/she can advise, because if you use software they are familiar with, this will help keep their fees down.

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Replying to brian-scholar:
By Mouse007
05th Dec 2013 22:03

Shirley !

ShirleyM wrote:

Your accountant can help you with this

Find out what he/she can advise, because if you use software they are familiar with, this will help keep their fees down.

 

He ain't got one, and I spotted him first, so push off

 

 (this joke is wip)

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By ShirleyM
05th Dec 2013 21:24

Watch it, Mouse!

Mice make a tasty change from fish. :)

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By petersaxton
06th Dec 2013 07:59

I can't answer

"What accounts am i entitled to keep"

What does this mean?

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Replying to breathwell:
Red Leader
By Red Leader
06th Dec 2013 11:09

civilians present

Look here Mouse and Shirley, mind the civilian doesn't get caught in your crossfire.

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By The Innkeeper
06th Dec 2013 11:11

@mouse007

That's not very professional

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Replying to Wanderer:
By Mouse007
06th Dec 2013 17:05

What's not ?

The Innkeeper wrote:

That's not very professional

 

It twas a joke, glad someone liked it. I’m sure Shirley wasn’t offended.

I was doing too much last night to finish off my post (“joke is wip”) before everyone else piled in.

IMO OQ was a bit cheeky.

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By JDBENJAMIN
06th Dec 2013 12:29

It is clear you need training.

There is no magic pill. Buying software will not do the accounts for you. You have to understand accounts properly first if you are to avoid creating a shambles. I recommend you enrol on a book-keeping course.

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Replying to Ian McTernan CTA:
By petersaxton
06th Dec 2013 13:09

Don't try to learn accounts/bookkeeping

JDBENJAMIN wrote:

There is no magic pill. Buying software will not do the accounts for you. You have to understand accounts properly first if you are to avoid creating a shambles. I recommend you enrol on a book-keeping course.

He's better off getting an accountant and/or a bookkeeper. Online bookkeeping plus an accountant is the best option.

I'm not going to learn about boilers/cars, etc.

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By johngroganjga
06th Dec 2013 13:44

If you are running two successful businesses you must be able to hire an accountant to deal with these things for you, and take the weight off your mind.  Surely you have more profitable things to do with your time than to spend vast amounts of it acquiring the knowledge you need to deal with these things yourself.

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By neileg
06th Dec 2013 13:55

Plus

An accountant may well advise you on the structure of your companies. There may be advantages or disadvantages of them being in a group.

When I need a tyre, I go to a tyre supplier. When I need some accounts done, I do it myself. I'm an accountant not a tyre fitter.

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A caricature of SteveJay
By SteveJay
06th Dec 2013 14:03

Find an Accountant who is prepared to work with you

I have been in business for over thirty years and have always used accountants who are prepared to work with me not try to keep me in the dark.

I have been using QuickBooks for the last 20 odd years which is loved and hated probably in equal measures. It is not too expensive, does all the difficult double entry stuff and works just like a cash book based around your bank and cash accounts. 

The difficult stuff like understanding what the Tax Man is talking about is best left to an Accountant whose brain is wired in that strange way (sorry Guys) They are also a very good large bit of sponge rubber between you and the Tax Man.

As long as you put your cards on the table at your first usually free meeting and agree a fee based on you doing as much of the donkey work as possible within your abilities and he/she does the twiddly bits.

I do my accounts, Vat and PAYE myself. Don't forget that your Ltd. company means that you are employed by the company so must be registered for PAYE and RTI. I visit him for about two hours at the end of the year with all my bills print-outs and bank statements so he can make the odd spot check. He does the company Tax return and our self asesment returns and I walk out with my bill. He has earned a reasonable fee, I have kept my costs to a minimum and we are both happy.

Good luck with your business.

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paddle steamer
By DJKL
06th Dec 2013 14:06

Car sales and stock records

Given one of the companies deals in car sales, if some of these are second hand car sales any software will need to deal with a stock book and the vat on the margin between puchase and sale.

No idea who supplies a computerised package covering this, there is bound to be someone, but it may be a bit more expensive than normal run of the mill accounting software and will probably be a bit more complicated; probably not a good idea unless the user has either some understanding of debits and credits or is having their hand held by someone who does.

 

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By ShirleyM
06th Dec 2013 17:54

Mouse is A OK :)

Mouse is a joker and was gently teasing the OP, and anyway, I enjoy a bit of fun. Accountancy can be too serious at times and gives us little opportunity for a good laugh. Thank heavens for people like Mouse & Flash,

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Replying to sam1412:
By petersaxton
07th Dec 2013 00:31

What has happened to Flash?

ShirleyM wrote:

Mouse is a joker and was gently teasing the OP, and anyway, I enjoy a bit of fun. Accountancy can be too serious at times and gives us little opportunity for a good laugh. Thank heavens for people like Mouse & Flash,

He must be catching up on work and academic life.

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Replying to 0098087:
By Mouse007
07th Dec 2013 23:46

He be She

petersaxton wrote:

What has happened to Flash?

He must be catching up on work and academic life.

 

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By andy.partridge
06th Dec 2013 18:10

Seriously

If I go to meet a professional to discuss something important the very first thing I want them to show me is their wacky sense of humour. It helps put me at ease. Seriously.

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By User deleted
07th Dec 2013 10:34

@ Peter

Writing a dissertation in the hope of getting it pretty much done by Christmas! Oh and juggling a bit of client work too. But just stopped by to appreciate a dose of Mouse humour - it is the season to be jolly after all :) 

And re the OP, unless you're planning on preparing and filing the accounts & tax yourself in due cours I'd recommend talking to an accountant sooner rather than later like a wise penguin suggested - they might have suggestions to help you and keep down fees.

And now back to the flow (hopefully)

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By zebaa
08th Dec 2013 11:23

Mouse - there is truth is your jest, the sex is of no matter in accounting. Unlike other industries, where sex related issues do. I'm thinking here of size & strength, but anyway I ramble.

To answer the OP's question I suggest he (Jon being male?) either purchase a simple accounts program or uses one of the online pay-per-month providers. He could do a AW site search for recommendations, there has been much AW site talk over this. If he chooses to purchase a program my further suggestion would be don't choose SAGE - it's overkill.

The advantage is he will learn from the structured nature of the program which an excel spreadsheet will not provide. He can then provide his accountant with something or he can try and - deep breath here - learn more. Only he can decide, but he comes across to me a competent sort of man & I wish him good luck.

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By User deleted
08th Dec 2013 12:41

@ Mouse

Are you trying to tell me that I'm not man enough to be a superhero anymore?! :(  

I'd be deeply wounded but I don't think that would sound sufficiently manly so I'll go and do some DIY and flex my muscles in the hope of regaining my credibility. Maybe I'll build a mousetrap!!

(I might try that first line though when clients bother me)

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By Mouse007
08th Dec 2013 22:07

Quite the contrary Flash

.

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