Cheap, cheerful and very effective. You wouldn't regret the purchase.
And that's the answer I was looking for. Thank you very much!
My mistake, it was indeed me who was confusing you.
I don't mean the cash basis for Income Tax, apologies for that. I intend to produce the accounts using his workings for p/l and s/l, but the fact he accounts for VAT using cash accounting is confusing me.
When producing his p/l, he's split out the VAT when entering invoices onto the PDB, same for sales. So how do I go about entering those figures on for purchases in terms of VAT, when he's used what has physically been paid? The VAT won't tie up because of the two different methods.
I know I'm being blind here, but it's one of those weeks.
The new cash basis option.
Our client keeps p/l and s/l but runs VAT cash accounting system. He has given me printouts of various reports, but from what I can see, I should be using the cash basis to allocate transactions for Income Tax and then adjust for creditors / debtors by balancing the p/l and s/l to ensure the year end balances are correct.
Am I making sense or am I now on a mission to confuse everyone else!
Many thanks for your further responses.
I am conscious that the income could well be worth my while in the future, which is why I want to tread so carefully.
With it being such a new opportunity for me, it feels strange paying for something that I may not get. Although I suppose the inclusion of a clawback clause would give me some confidence.
I really don't want my best option to be paying 1/2 up front with the costs I am currently having to deal with, so do you think it's a fair option for me to offer 50%-60% of the fee over the next 2 years in order to pay him?
I am definitely not in the market to pay up front for them, especially considering I am about to buy my first property. To spend money on a client list rather than a dining table would mean I wouldn't have a girlfriend to go home to!
I think that is a fair solution, that way I am benefiting immediately from the work whilst also paying a fair fee. I will put that to him and see what he says.
Thanks for your thoughts redman.
I thought a valuation closer to 1 would be more appropriate. The guy has had these clients for over 15 years, so I am weary that a change could see them breakaway from me to a different advisor.
I am also conscious that I am 26 and he is much older than me. Part of the problem I will face is that they will assume I am not old enough to advise their businesses; I have already encountered it with other businesses. I hold an ACCA practicing certificate whereas he is not under any accounting membership.
I did think a counter offer could be that I work for the year for free and pay him all of the fees. That way I know which clients will transfer over and he will still get the same sales price if he comes down to 1.
Coincidentally I did look up the possibility of my employer becoming an ACCA approved employer. I would have thought the employer is required to be ACCA qualified but I cannot see anything on their site to suggest that. It would be worth looking into this as my boss eventually hopes for his son to take over the practice and given that this scenario would also apply to him, it may well be in his interest to apply..
I was made redundant from my previous employer, and given that we are not in the greatest shape in terms of job availability I took what was available. I'm very happy there too, my boss has been self employed for over 30 years yet just because ACCA don't deem IFA a worthy qualification, he is unable to sign my training records off.
I wouldn't be signing them off specifically, it'd be the Company surely?