Any suggestions for UK businesses - program seems quite American

[Christopher Lam]

Dear Dr Kirkby
Wish to offer my 2p. I also spent time in UK as a (non-VAT registered)
freelancer and used (still use) Gnucash extensively. IMNSHO you will find
that Gnucash is more than capable for your needs. Although it has no
monetary costs, it has numerous non-financial costs and benefits:

a) it will easily handle Paypal and Cheque incomes. some of us have
transactions going back 15 years.
b) it can easily record expenses and you'll be addicted to its extensive
tree structure
c) it will enforce strict double-entry accounting and you'll spend time
wrapping your head around this
d) it will provide accurate reports, suitable for any accountancy needs.
But you'll need to understand accountancy terminology from (c) above, so
that you input data accurately. Avoid GIGO.
e) it will File>Export to CSV but the format may not be to your liking.
Usually the accountant will prefer reports generated by Report>Transaction
Report instead.... but this does require you climb the learning curve (d)
f) by 'Checking Account', gnucash just means 'a normal current bank
account' -- the rest (overdrafts, interest etc) have no particular handling
by gnucash.
g) lots of us use Gnucash features above, and ignore its "business
features". Business features are an optional part which handles
Invoices/Bills/Accounts receivable/payable/ageing. I find the Business UI
unappealing and do not need it. If your business is scientific consultancy,
I'm guessing you will not need them either.
h) Gnucash's Business feature have 1 omission which is inventory tracking.

Welcome to the list. Anyone, please correct me if I'm wrong!

On 26 Nov 2016 09:38, "Dr. David Kirkby - Kirkby Microwave Ltd" <
drkirkby at kirkbymicrowave.co.uk> wrote:

> 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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