Be your own DIY accountant - and save money?

We know that no matter how reasonable our fees are, there are always going to be those who will be their own DIY accountants. Perhaps because your business is small, one-man or part time. Perhaps because you've experienced large accountants bills without the attendant large savings in tax! I'll never convince you...  ...so you are safe to read my attempts to try! Here are the reasons for doing your own accounts...     * Save money Indeed, you will save yourself a bill from an accountant. However, do you really know if you are claiming everything you could be? For instance, you understand the reducing balance on your capital account but did you know that you can write off your computer equipment in one year? Or that many small capital items needn't be allocated to the capital account and can be claimed as normal in-year expenses? Through a single missed opportunity or mistake you could easily end up paying more in tax than your accountants fee with Discountants.     * Make money No, no, you can't make money out of tax! I mean you could be making money doing what you do, rather than sat at home with your paperwork. You are in effect losing the income you would otherwise be making if your were working. In practice your accountants bill should be less than these losses. At Discountants we would certainly hope so.     * Ah but! ...you do your accounts in your spare time you say. Well, this ain't quite so, you do your accounts in work time because it is work!! So there is just more work time in your life. If you really enjoy it that much that it falls into your leisure time then maybe you should enroll in your nearest AAT accountancy course! Then come and work for us as we love our staff to be really into what they do! So, if its work time your using to do your accounts and tax return, why not work at what you know and do well instead? The truly precious commodities in life are actually time and freedom of course. I don't think either your time or your freedom are served by doing your own accounts.  That's why to be wealthy you'd like to work for a good hourly rate. Working every hour God sends for a moderate wage will create some wealth but this is hardly an enriched life in my book. Is it in yours? Charge the time you spend doing your accounts back to yourself as business time and see what you get.     * Still not convinced... If you still think that doing your own accounts is the most cost effective thing for you, despite the risks and despite the fact that it is real work, then perhaps you should even reconsider what you are doing with your business? If you are in business because no-one will give you the flexibility of working hours or because you love the lifestyle then this doesn't apply to you but generally, the point of a business is to make money. There is risk involved so it should make decent money, ensuring the good times cover the bad times. If profitability is marginal, then maybe it's not sooo bad to consider returning to ordinary employment, where you might earn a steady wage and you certainly won't have to spend your free time doing accounts and tax calculations! Anyway, tell me if I'm right or if I'm wrong on the contact page if you like... Clint Smith

 

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