book keeping

L

lil.bg

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Hi guys... ok... I’m in a little bit of trouble here... my husband (an Arty type) has fallen into his business if you like – he is a teacher but he gives workshops during the summer for kids clubs etc... At first it was extra money now he is dealing with arts councils, schools, etc and doing workshops all year round while also holding down his teaching job. His earnings are not huge but he is doing well. He keeps receipts etc banks statements and has registered a business name last year - but he has not prepared any accounts... what so ever. He is registered as a sole trader. Currently we are renting a home while looking for planning permission to build. I really want to get this sorted ASAP for out mortgage. He would have started in 2003.

Where do I start.. and what should I be looking out for? Should I call the revenue and get some help from them? – come clean so to speak?

thanks
 
lol, ok, yes an accountant.. and i only laugh because this is such a mess but surely I need to start getting info into an organized manner - prepare some spread sheets of expenditure and income for him. I don’t want to just walk in there with a box of paper… also what would the cost be? How will the revenue react to us…. Would they be understanding give us some time to get this sorted or will this be held against us… etc… I am doing quite a bit of reading on keeping accounts etc. and yes I can do the basics but I would like a heads up on what I am heading into first… there doesnt seem to be any guides on preparing your own tax returns... giving details and example...
 
lil.bg said:
Where do I start.. and what should I be looking out for?
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I would suggest doing spreadsheets for the records, either manual ( hand written ) or otherwise. Do up a cheques journal, Sales book, purchases journal etc. Books should be easy enough to do from that. Ask 3 or 4 book-keepers / accountants for a quotation if you need help. Get it sorted out anyway. Thats only my humble opinion.
 
lil.bg said:
lol, ok, yes an accountant.. and i only laugh because this is such a mess but surely I need to start getting info into an organized manner - prepare some spread sheets of expenditure and income for him. I don’t want to just walk in there with a box of paper… also what would the cost be? How will the revenue react to us…. Would they be understanding give us some time to get this sorted or will this be held against us… etc… I am doing quite a bit of reading on keeping accounts etc. and yes I can do the basics but I would like a heads up on what I am heading into first… there doesnt seem to be any guides on preparing your own tax returns... giving details and example...
Click to expand...


Get a good book keeper to catch up all your records

Get some basic tax advice from a tax advisor who deals with sole traders. Give them the records from the book keeper - probably bring along the book keeper to that meeting. That way the tax advisor will be able to exactly tell the book keeper what is required and will not be able to say it is a mess

Once up to date keep the records yourself with some monitoring from the book keeper - more at the beginning.

This is not something to have a go at yourself at this stage. If you bring poor records prepared by you to accountant they will just file them with revenue as they are because they wont be able to spend time on them. However Revenue will hammer you later if they spot check and find any major errors. Some fines from them and you will find the good book keeper would have been cheapest option

As well as income tax there may be vat issues to be considered.

Ignorance or having a go does not go down well with the revenue - if you make a mistake and should have paid them more they will suspect you did it deliberately, if you over pay they will be reluctant to repay without lots of details and confirmations etc. Do not under estimate the seriousness of not keeping and submitting proper records - particularly if your husband has been at this since 2003 and not filed tax returns yet.

for example if your husband earnings have him in the top tax bracket - a €100 earned may have been vat liable - that approx €20 and top rate of tax - thats could be up to approx €30 depending on allowable expenses - he owes €50 plus interest !!!
 
Look up bookkeepers in the Golden Pages first. Or ask around if anyone knows a bookkeeper who wants to do a bit of part-time work. They will be a lot cheaper than an accountant.

I guess from your description that the amounts are not too big. It sounds like a few invoices a year without much expenditure. As a result the accounts could be a very simple statment of income less expenditure. No need for an accountant to do that.

If the amounts are large and if there is a big tax liability, then an accountant might be the best person to speak to the Revenue on your behalf.

But, contrary to public opinion, the Revenue is not out to screw you. They understand the informal nature of your husband's business and will help him to become tax compliant. In fact, if you get your affairs in order and meet the right person in the Revenue, you might get on a lot better than an accountant would.

Brendan
 
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