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This will just vastly increase your overheads, and you wont be able to afford the cleaner!3. Outsource your accounts & VAT work to your accountant and/or a bookkeeper.
Vastly?? I presume you're exaggerating a tad here?...vastly increase your overheads,....
How do you know? Are you the OP?...and you wont be able to afford the cleaner!
Really? Not so sure about saving time to be honest. Which is the most time consuming - posting vat invoices and net wage details to a bookkeeper once a month or two, or doing this work yourself?.There's lots of software out there that will be far cheaper and will also save you time (not having to deal with third parties).
If you believe this, you should ask yourself why so many businesses outsource their accounts. And why every accountant and bookkeeper in the country is booming.You'll also be in more control of your accounts, and will know exactly where you stand financially. This is really the last thing you should consider outsourcing.
No exaggeration. It sounds like the OP is running a small company so accountant fees would certainly make a huge impact in the overheads.Vastly?? I presume you're exaggerating a tad here?
No. I'm guessing.How do you know? Are you the OP?
Certainly doing the work yourself. Without a doubt. It takes about five minutes to do the wages for example. You also have a much better understanding as to how well you business is doing. It makes it much easier to do cash flow analysis etc.Really? Not so sure about saving time to be honest. Which is the most time consuming - posting vat invoices and net wage details to a bookkeeper once a month or two, or doing this work yourself?
lol! - QED! (I think these are outrageous costs)For what its worth, a 2-monthly VAT return for a straightforward service business can cost as little as €60-80 every 2 months (possibly cheaper). A quarterly P30 return for one employee should not cost much more than €100.
Well if accountants and bookkeepers are charging €100 for a P30 for one employee, I can see why business is booming!If you believe this, you should ask yourself why so many businesses outsource their accounts. And why every accountant and bookkeeper in the country is booming.
Maybe you're in a particularly high paying profession. Every penny counts for many small business owners.I don't think the charges outlined are outrageous by any standard
Something I never really thought of.7. Increase your prices by, say 20%. Even if you lose 20% of your customers, you will still be earning the same money and working 20% less.
Payroll software costs at least €120 per year. You still have to know how to use the stuff after that. In that context, an annual cost of €400 for 12 months returns isn't bad in my book. In fact its insignificant in terms of the annual cost of employing someone.The second thing is the cost issue. How can you say that €100 isn't outrageous for doing one return? You can nearly buy the software for that price.
Most packages these days are pretty easy to learn. For us, the wages are simple.Payroll software costs at least €120 per year. You still have to know how to use the stuff after that.
How much does a P35, P60s and the odd P45 cost? The cost of employing someone is irrelevent here, we are only talking about compliance costs.In that context, an annual cost of €400 for 12 months returns isn't bad in my book. In fact its insignificant in terms of the annual cost of employing someone.
Btw, ROS doesn't do payroll calculations.
Funny you should mention that. Last year I was talking to a person that has a company in Sweden and this is how they operate. They use their own system to input all the routine accounts, and then their accountant offers advice about cash flow, forcasting and other such stuff. The accountant's role seems to be quite different.There is a big difference between outsourcing routine accounts work and not knowing what your ongoing financial and cashflow position is from day to day. While (in my opinion) its a good idea to use an accountant or bookkeeper for the former, its a bit much to expect your accountant to hold your hand to the extent that you give them responsibility for the latter.
Like all costs, you can get good deals depending on where you look. Costs vary as does quality of service (not always in proportion).How much does a P35, P60s and the odd P45 cost? The cost of employing someone is irrelevent here, we are only talking about compliance costs.
What makes you think that accountants here don't offer similar services?Funny you should mention that. Last year I was talking to a person that has a company in Sweden and this is how they operate. They use their own system to input all the routine accounts, and then their accountant offers advice about cash flow, forcasting and other such stuff. The accountant's role seems to be quite different.
I would argue that a business owner who spends several hours every month on basic compliance paperwork would be better off spending this time on planning and business strategy. Which brings us back to where we started...The unfortunate reality is that many business owners will hand over all their accounts to a bookkeeper/accountant, and won't do any financial analysis.
Our (final) accountant bill was nearly €4000. This is what prompted us to invest in accounts software, and it was the best business decision we've made.accountant fees would certainly make a huge impact in the overheads.
this does;What makes you think that accountants here don't offer similar services?
They don't need to offer this service, because they're getting thousands anyway for doing standard returns.There is a big difference between outsourcing routine accounts work and not knowing what your ongoing financial and cashflow position is from day to day. While (in my opinion) its a good idea to use an accountant or bookkeeper for the former, its a bit much to expect your accountant to hold your hand to the extent that you give them responsibility for the latter.
...and I would argue back, that once all your accounts are in a computer system it's far easier to spend time on planning and business strategy.I would argue that a business owner who spends several hours every month on basic compliance paperwork would be better off spending this time on planning and business strategy.
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