Any suggestions for UK businesses - program seems quite American

[Dr. David Kirkby - Kirkby Microwave Ltd]

On 11/26/16 12:36 AM, DaveC49 wrote:
> Hi David,
>
> Just looking at the definition of a current account on
> http://www.banking-guide.org.uk/current-account.html it serves the same
> purpose as "checking account" in the US-American terminology or "cheque
> account" for those of us of more recent British origins. Apart from the
> name, a cheque account is no different from any other Asset banking account.


OK

>   You may however need to set up accounts associated with the processes of
> clearing cheques which you have received or written as there is usually time
> delays between receipt of a cheque, depositing it  to your account and the
> clearing of the funds so that they are available in your account so you can
> adequately monitor your cash flow.

So far I have never received a cheque, and never sent one. Around 60% of my 
business is via PayPal, the other 40% by bank transfer. Cheques are pretty much 
dying in the UK. Very few shops will take them now.

I need to work out how to handle PayPal, but I'm pretty sure that must be 
answered in the lists or documentation, so I'm not going to ask that.

> The specific name allocated to accounts is easily changed by selecting the
> account in the Accounts tab and then Edit->Edit Account from the menu which
> will allow you to change it to whatever you wish as well as changing other
> properties of the account. Right clicking in the Accounts tab allows you to
> select a New Account dialogue which allows you to add new accounts to the
> chart of accounts in the Accounts tab.

Changing names is easy enough. But for changing properties, you need to 
understand what you are doing, and I certainly don't !!!

> You could get your accountant to suggest an account structure appropriate
> for your business and business processes and UK accounting practice and then
> customise one of the standard structures to suit.  You will find references
> in the forum archives for setting up UK VAT tax structures.

I need to talk to him about this. I'm not over keen on his suggestions of:

* Kashflow (online based) or
* VT transaction (Windoze based).

both of which cost money. It is not so much the money, but I prefer open-source. 
I've spent a lot of time developing open-source software, and like to use it. 
I'm not keen on this proprietary stuff. That said, I can see the advantages of 
an online system, where an accountant can log into the same system.

I can easily believe that using GnuCash might end up costing me far more in 
time, and more in accountancy fees than if I use the system the accountant 
recommends.

> Gnucash can export in Excel csv format and most other accounting packages
> can generally import csv files. At a minimum you could use this to exchange
> information with your accountant for import into whatever programs he/she
> uses. Check with the accountant on import/export facilities.

It's a shame GnuCash can't export into more than just cvs. If it could export to 
a few of the popular packages, an accountant could be sent them in whatever 
format he/she wants. That would make life a lot easier! But I guess these 
proprietary programs use a propriety file structure, to lock you in. The usual 
"vendor lockin".

But my accountant was happy to take Excel accounts, and set me up various tabs 
for various things

* Director loan
* Asset register
* Income
* Expenses
* Stock at end of financial year

One of the issues I encounter is that often an asset is bought with two payments

1) To an overseas company for the goods. Usually with PayPal
2) To DHL, FedUX, Parcelforce etc for the VAT paid on the item.

A lot of money has been spent on test equipment, which are fixed assets. So the 
asset register has to have the sum of the amount paid to the two parties.

The company is not yet VAT registered. I'm hoping to improve turnover to the 
point it is necessary, or it might be beneficial anyway, as 90% of what the 
company sells is exported, so no VAT would be charged in many instances, but the 
VAT could be recovered on purchases.


-- 
Dr. David Kirkby Ph.D CEng MIET
Kirkby Microwave Ltd
Registered office: Stokes Hall Lodge, Burnham Rd, Althorne, Essex, CM3 6DT, UK.
Registered in England and Wales, company number 08914892.
http://www.kirkbymicrowave.co.uk/
Tel: 07910 441670 / +44 7910 441670 (0900 to 2100 GMT only please)
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