Frequently Asked Questions About Accountancy

It might seem surprising but anyone can call themselves an accountant. However, the title ‘chartered accountant’ proves that the person has completed at least three years training, passed exams in financial management, auditing, business strategy and taxation, and is committed to continuing professional development to keep their skills up to date. We like to think of it as an additional sign of our competency, professionalism and integrity.

We certainly can if that’s what’s right for your business. We offer the full range of accountancy services and would be delighted to discuss your options with you, and we’ll only ever recommend what we believe is best suited to your needs.

Our services include:

• Annual accounts preparation
• Bookkeeping
• Business services – finance, registered office, strategic planning
• Company formation and responsibilities
• Contractors and IR35
• Employment status
• Management accounts and information
• Payroll and PAYE returns
• Personal and property tax
• Self-assessment tax returns
• Starting a new business – from bank accounts to business plans
• Tax – disputes, investigations, fee protection, and planning
• VAT – registrations and returns

You can call us on 01904 787973, Monday to Friday, 8am to 5pm. Or drop us a line on donald@dinglisaccountancy.co.uk and we’ll get right back to you.

We welcome clients from all over the UK. People in the York area have the benefit of being able to see us face-to-face more easily, but we are happy to work remotely and can ensure we stay in touch via telephone, video call, email or text message, wherever you are based.

Yes we do. We are proactive about keeping on top of accounting software developments and can work with a variety of packages.

This will depend on a number of different factors – the best thing to do is book a free initial call with us and our experts will be able to give you some guidance.

This will depend on a number of different factors – the best thing to do is book a free initial call with us and our experts will be able to give you some guidance.

A bookkeeper makes sure that a business has accurate and up-to-date information about its finances.

For a lot of small businesses, both roles can possibly be undertaken by a skilled and experienced bookkeeper. However as the business grows and the needs become more complex the day-to-day data entry, recording of payments and receipts, etc are undertaken by a book keeper. The accruals, prepayments, strategy, board meetings, etc are then prepared/undertaken by an accountant.

Typically an outsourced bookkeeper will cost approximately £1 / transaction. We have moved away from using timesheets and invoicing per hour and now invoice depending on transaction volume. The advantage to the client is that we are more efficient (where/what is the motivation to be quick if billing hourly?) and the client pays based on outcome as opposed to time spent.

A great question and really difficult to answer! In a lot of cases, a part-time bookkeeper who works hand in hand with an accountant is often the best way forward. 

You most certainly can, especially with some support and help from an experienced accountant. However is this really the best use of your time? I have learned the hard way in business that only do what only you can do and do it brilliantly - the rest, pass over to an expert in that field. It is similar to the DIY scenario - most of us can change a light fitting, but very few of us can re-wire a house.

Software is brilliant and saves a lot of time. However a bookkeeper is still needed to make sure and check that entries are correct - especially with respect to VAT and spotting the difference between tax-deductible and non-tax-deductible items. 

The best book keeping software is a combination of price ad ease of use, whilst at the same time providing all the required reports. In our experience, the best software is the software a client will use and enjoy (!) using.

If you want to trade through a limited company - you need to form one. Simply calling yourself Joe Bloggs & Co - doesn't make you a limited company. Similarly, you can only call your self Joe Bloggs Ltd if you have a limited company. 

There are several, but the most common is a company formed by share capital.

The easiest way is to follow this link: https://find-and-update.company-information.service.gov.uk/company-name-availability type in your preferred company name, and it will tell you if the name is available.

There are indeed - but for the vast majority of our clients, a company ltd by share capital will be sufficient.

Yes, you can. However, why would you want to risk getting something like this wrong? One of the most important lessons I have learnt in business is to do what you are brilliant at and do that - everything else - outsource.

The annual accounts of a company are the final report on all aspects of business operations. The directors' report will describe what the company does, how it has performed and should allow the reader to get a real feel for what is going on. The balance sheet will list assets and liabilities, while the profit and loss statement details how much money was made or spent over that period. 

Yes, you can. However, care needs to be taken to make sure the disclosure requirements are correct. Often the users of accounts (especially lenders) will want the accounts to be prepared by someone who is completely independent of the company and should no be biased either one way or the other. 

Generally, we need a record of all the receipts and payments from the business, along with the company bank statements to ensure the records are indeed complete. Traditionally of course these were paper-based, but increasingly a link to software such as Xero, FreeAgent, QuickBooks etc is often all we need to make a start.

Every company registered in the UK needs to prepare company accounts - even if they are dormant or not yet trading. A sole trader or partnership on the other hand is not required to submit accounts.

Yes, you can. However, they are a legal document and HMRC do have a legal right to investigate and question them. I would strongly recommend they are prepared by a qualified accountant.

They are prepared for two main reasons. The first is that HMRC needs to know how much tax to expect and collect. The second is that companies need to show a public record of the state of affairs of their company. The reason for this is the company is a separate legal entity to the owner which means that a supplier can work out how much credit to extend, or a customer has an idea of what volume the company can provide. 

No, you do not. However, I strongly believe that one of the most important rules in business is only doing what only you can do and be brilliant at it. That way you are making the very best use of your time, and remember that time is the only resource that we can't buy more of.

The only companies that need to be audited in the UK are those that have 2 out of the 3 of the following; sales over £10.2 million, gross assets over £5.1, or more than 50 employees on average. 

Not necessarily, but do remember a Limited company that is trading MUST have its own bank account in its own name. The tax consequences of not doing this correctly are large and unpleasant. If there is one point on this page to make a note of, then this is that point.

Accounts need to be submitted to companies house within 9 months of the year-end, and to HMRC within 12 months. Helpfully both HMRC and companies house will send reminders to the registered office. Of course, a helpful accountant will make sure they are not missed either!

Eventually, the company will be struck off. At this point in time ALL assets will be transferred to the crown this includes bank balances, property in the company name, vehicles etc. The company can be brought back to life, but this is a lengthy, costly exercise that is easily avoided.

No. A trial balance is merely a list of all the nominal ledger codes. A balance sheet is a snapshot of the business at one specific point in time.

Yes, you certainly can. BUT you run the risk of making mistakes which can result in large penalties from HMRC, or of course making mistakes and paying too much tax - which is of course a penalty in its own way! 

Management accounts are internal financial reports produced regularly (monthly or quarterly) to provide insight into the performance of your business. They typically include profit and loss accounts, balance sheets, cash flows, and variance analysis to help you make informed business decisions.

They are essential for tracking your business's financial health, identifying trends, managing cash flow, and making strategic decisions. By analyzing these accounts, you can spot opportunities for improvement and address issues before they become significant problems.

Management accounts are used internally for decision-making and are not necessarily prepared in accordance with statutory requirements. In contrast, financial accounts (or statutory accounts) are prepared annually, following strict accounting standards, primarily for external stakeholders like investors, banks, and tax authorities.

It's best practice to review them monthly or quarterly. This frequency helps you keep a close eye on your business's performance and make timely adjustments to your strategies.

Focus on key performance indicators (KPIs) relevant to your business, such as revenue growth, profit margins, cash flow, and inventory turnover. Also, pay attention to budget variances to understand where you're over or underperforming.

Absolutely. By analysing past performance and identifying trends, management accounts are invaluable for accurate budgeting and forecasting. They allow you to set realistic financial goals and plan for future investments or expenses.

While it's possible to prepare them yourself with the right software and knowledge, an accountant can add value by ensuring accuracy, providing insights, and advising on financial strategy based on their expertise.

Payroll is essential for any company looking to hire employees. The system will take care of the necessary calculations, produce payslips and send information directly to HMRC if required.  We can do all the tax, national insurance, sick pay, SMP, SPP, workplace pensions, student loan repayments etc for you, saving you time, effort and hassle.

You might expect us to say this - but use us! Seriously though payroll is getting more and more complicated and the risks involved in getting it wrong are massive. From staff refusing to work to pension contributions not being properly calculated the risks involved are massive relative to the modest cost of payroll.

You certainly can, but take care! It is complex and getting it wrong at best means disgruntled employees. 

Each software will have different costings, depending on complexity. The best course of action is to talk to your accountant first. They may well use the same bespoke software package for all their payroll clients.

Surprisingly enough we think so!

Yes, you do. Any business that is employing staff (even 1) needs a payroll scheme.

Normally the client will calculate the amount to pay each member of staff and we will then process the payroll.

To save time, money and hassle and to make sure a business-critical function is run properly.

Like any service I would ask for recommendations from friends, business acquaintances, Google / online reviews etc. 

If you are an employee of a Ltd company and you wish to have a salary, then yes you do.

PAYE stands for Pay As You Earn, and it refers to income tax which is deducted from your salary before you receive it. 

Only if there is a change in circumstances. To be honest, HMRC are normally pretty good at getting this right. It has after all been around since 1944.

No, cash is legal tender. However to pay someone and not declare that payment (be it in cash, bank transfer, or an asset) is illegal.