Subcultural engagement for the 21st Century...
Barbelith is a new kind of community (find out more)...
You can login or register.

Underground > Conversation >

The Accountant is IN

07:21 / 07.09.04

I’m sure you’ll be pleased to hear that I’ve just passed my final accountancy exams and that I’m now a qualified chartered accountant.

So don’t worry if you’ve got some nagging questions about accounting standards – I’m here to help. I may also be able to answer tax queries and give advice if you’re thinking about starting your own business.

If the introduction of International Financial Reporting Standards (IFRS) concerns you, don’t despair. I’ve got plenty of useful information that I can share with you.

There’s a board at reception that reminds me daily of the importance of my job:

“IFRS won’t change anything much. Nor did Fleming’s discovery of penicillin.”

Yes, International Financial Reporting Standards will be just as useful and valuable as penicillin. And now you’ve got the chance to find out more about them! It’s your lucky day!

09:00 / 07.09.04

I rather like these free consultancy threads. I'd offer up my own services if there were any chance of people wanting to avail themselves of them.

Anyway, on top of my day job, I've just started doing a bit of freelancing. Not extensive - probably only amounting to a few hundred quid a week - but I have no idea how I go about declaring these earnings to the Inland Revenue. As my accountant, what would you advise?
Are there issues other than income tax I should be considering? I really am pretty clueless.

19:24 / 07.09.04

This doesn't apply to the US, does it? Alas, you're exactly what need. When I'm asked whether our business is cash or accrual, what does that mean?

20:10 / 07.09.04

Er. I'm a bookkeeper and I work as office manager for a CPA firm in the U.S. I think I can field this one.

Cash basis and accrual basis are just different bookkeeping methods. It all depends on when you consider income and expense events to occur. In a nutshell:

Cash basis - you record/report expenses when you pay them and income when you receive it. (I.e., you only record the transaction when the money actually moves.)

Accrual basis - you record/report expenses when you get the bill/receive the shipment, and income when you ship the product/render the service.

flufeemunk effluvia

03:39 / 08.09.04

Do any of you want to be lion tamers?

(sincere apologies for the monty python.)

03:51 / 08.09.04

Nah. I always wanted to be...

10:07 / 08.09.04

Suave – If you’re a higher rate taxpayer (i.e. earn more than about £30k) you will have to fill in an annual tax return and declare all your earnings. Otherwise it’s pretty much up to you. But as your accountant I would obviously ask you to do the decent and honest thing and to inform the Inland Revenue (just check their website, I’m sure there’s a hotline you can call). They will probably ask you to fill in a tax return at the end of the tax year.

Are there issues other than income tax I should be considering? I really am pretty clueless.
Nah, nothing major I can think of. I’m not a tax expert though.

Accruals basis – This means that income is accounted for in the period to which it relates. For example, if your year-end was the 31 December and you got an invoice for an annual subscription from October 2004 – September 2005, then you would account for 3/12th of the amount in the current year and the remaining amount would be treated as a prepayment.

17:45 / 08.09.04

Thank you both!

19:17 / 08.09.04

All these offers of free professional assistance are really sweet. It makes me want to start my own thread, entitled "The Bookshop Assisstant Supervisor Is IN" . I know the publishers of almost all the different primary and post primary titles used in the Irish education system OFF BY HEART. But I fear this rather specialist knowledge would be underappreciated.