Any suggestions for UK businesses - program seems quite American

[Robert Heller]

At Sat, 26 Nov 2016 01:37:05 +0000 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.

PayPal is just another [asset] account, much like a "checking account".  Money 
goes in and money goes out... 

> 
> > 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.

You just to talk to your accountant about your account *structure*, not about 
the software to implement it.  GnuCash can implement any account structure you 
like.  

> 
> > 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.
> 
> 

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