Get a Good Accountant, become Consultant, establish Limited Company instead Solo Trader. Grow.
Updated: Feb 13
Awhile ago before choosing accountant - advice for myself, and others before hiring service from accountant. Finding a good accountant is like finding a good elegant high heels in sizes: US 3.5, EU 35, UK 2.5 in which I can walk freely and effortlessly all day dressed classy. 👠
Contact Accountant, one by one - have a few options - services are like products, do not buy first. Compare. Then buy and if not good, change.
They are your money so make sure they are taken care of in a modern way.
Do not settle for less than the world can offer. Modern accounting services do exist. If you are reading this blog, most likely you are UX/UI Designer.
Short Story Behind:
It took me 5 accounting services to finally be satisfied and this is because of the lack of knowing what and who I want and how. I am still learning from my own mistakes which I do like indeed otherwise will be no adventure. Money comes and goes, and peace of mind is the ultimate best that brings success. To learn and review first, and compare, ask others, then buy service just like I do for years with products. Accounting is not my thing even though I have a qualification (both Polish - secondary school and Irish, courses).
If your banking account is modern so is your accountant too. Means no Excel/any form of Spreadsheet but an accounting platform with input and output information, uploading, clear, tidy and effective, with graphs and charts.
Took me more than 5 different accounting services.
There was a lot of steps to find the ONE and more about the feedback in another post or extension of this one as you will laugh as I do now. My fault. I will one day describe how silly accountants can be. Story to Laugh: One hint I will share, one accountant, Polish in Dublin told me when I asked do you have an accounting platform for uploads of incomes and expenses for you clients (me) within user profile etc o just spreadsheet (excel, google etc.). He told me, first that it is not existing such a thing, and then, yes it was a male, then I can pay for it, and he would get a developer to design/code it for me so I can have it. I laugh! And said how ridiculous this was and finished the call.
More for another time. I have Irish and Polish. Women and Men. A real adventure of how People's brains work.
Ask the price of the accounting service and clear price for all kind of services up front.
Here is more basic knowledge for every dummy. I still consider myself a dummy so I do write those note seven for myself to refresh and revaluate what I do well and what else needs to be done better.
First Research the career possibilities.
Establish yourself in the industry within successful contracts.
In mid-time research well accountant services.
Read the catalogue of expenses for your country as it might be different.
Recognise accounting documents to get familiar with it.
Reduce all business relative expenses. Recognise them all before starting.
Liabilities (costs) - what needs to be paid back (facilities, bills, salaries, services, items, etc.)
Receivables (earning) - what is received
Tax - what needs to be paid to government
Balance - what is left - profit
The Bookkeeping revenues, income, expenses, profit and lost - delivery of documents accounting offices: report a full-time activity, 3/4 full-time, 1/2 full-time, what is the form of tax settlements
abc running a company - current one.
Have a handy app (review before choosing and using it) for the incomes, expenses, bills, and receipts.
Additional costs for employees, caring of staff - expense catalog (gym, gifts, vouchers, canteens).
Beverage/ food supplements/business coffees, lunches and dinners, conferences meeting etc. for employees / customers / clients e.g. Tips - You cannot charge VAT for tips PLN 200 invoice (cost with tip PLN 230 - PLN 30 without invoice).
Advertising and advertising costs - business cards, website.
Describe the document, receipt (e.g. sandwiches, tea, coffee catering) well in connection with the client's meeting.
Costs of obtaining expenses (non-retirement costs).
Catalog of costs and non-profit, e.g. the contract will not be terminated performing the activities (business lunch)
Tax Chamber - Tax Office - Revenue - recognize documents - read well and repeat, prepare a question for several accounts and choose the one that answers the most in simple, understandable language without jargon, it will mean that cooperation will be the easiest, most pleasant, effective and efficient, helpful and supportive.
Tax declaration - annually, from March, can be accepted, until the end of October for payment.
VAT - every 3 months.
Declaration- 5 years for a computer, from the net price of incl. 2000 Euro net divided by 5 years.
It's best to register a company and buy what you need. Easier, practical.
Report - contribution of own value before e.g.
Car - fuel costs, tax, insurance. Reduction of expenses, parking costs, etc.
Computer, telephone, devices, printer, top-ups.
Education, workshops, conferences.
Research accountants, the best locally and/or with effective online user friendly platform.
Read reviews - start with less positive, constructive and negative then positive.
Create the Plan for the 1:1 meeting, video call or phone call.
Multiple major sources of income - increasing your income flow - consulting and freelancer.
Register a limited liability company.
Get a tax number - international.
Ask clearly what kind of documents you need to register.
How long does it take?
Where shall I go for extras donation e.g. depending on the country: back to work, back to business, back to education, business enterprise etc.
What kind of benefit is the company limited has in comparison to sole trader etc.?
What is the cost of registration?
Mobile and Desktop Apps - advice to keep expenses tidy.
Settlement of taxes, VAT and employment tax - what is the form of the settlement (consultant + full-time contract), clearly to be explained.
Better to be just a consultant on long term contracts.
What can I reduce from the value of the property contributed, and what about new equipment, costs, courses, transportation, possessions, business meetings, etc., website domains, sail rentals, graphics, artistic and technical costs, etc.
If my earnings are not profitable, how can I cut costs? Would I be in the minus?
What is your service/product?
Business activity company - how it will look like in the registration and identification of the company if various services/products are provided. - Ask the question if needed.
- UX/UI Design - applications, platforms for desktop, tablet and mobiles - main consultancy for start-ups and small, medium and large tech giants
- UX/UI design tutoring and mentoring
- graphic design, digital and print, branding
- fine arts and design courses - teaching
- fine arts - creating (tools, materials, scanning, framing, advertising, packaging, posting) and selling
- design items - various products, packaging produced items
- buying, rebranding, selling
- yoga/holistic teaching classes and workshops
How to settle the tax when the company collects the tax automatically every month from the salary - how often is it settled?
Do I need to report to my employer that I am self-employed?
What is the invoice form for my customers.
How with international banks, wire transfers etc if the company a is incorporated in Ireland?
TM, R or Patent - recommendable patent office - where to start? (read another post)
Investments - how to look for design, new ideas, products, etc. for small business companies
What's the directory of expenses in Ireland?
Equipment depreciation - can I deduct the property of earmarked value - how many years back - equipment is an investment, buy everything wisely.
The ABC of running a company - basic information.
Have a modern account service within a user platform, to place all your income and expenses.
Avoid all old-school MS Excel, and Google spreadsheets - research well and decline all which operate without the proper platform.
Have an income and expenses book (online only, digital). Avoid manual due to double job.
From time to time have a phone call, 1: 1 with the accountant just to check-in.
Review Revenue and keep tidy.
VAT - establish VAT reduction - to receive back VAT, especially when payments for business come from the private bank account / sole trader.
Open a business account and keep it separate, easier for expenses, revenue - TAX / VAT and growth of company limited.
When needed pay money to a private bank account.
The limited company in revenue and in the bank can be open with 2 people, the director and the company secretary.
As director of the company limited, establish no access or limited access to bank and revenue to the secretary if this is just formality and not actual day-to-day work. When the company grow at that time hired a proper assistant, accountant.
Get a good understanding of the difference between tax and VAT payments and the differences between the VAT on different services and products.
VAT is paid in advance and then refunded (if VAT is registered, it is added to the income every 3 months and refunded).
VAT is paid in advance for various services and products.
TAX is paid for the money earned, fewer costs (expenses), which means that it is charged only on the profit. The profit must be at a certain level to be paid out. Otherwise, it is counted as lost.
TAX is feudum (fee) for the country.
TAX is paid once a year, in the year following the payment of the tax year.
Usually before November this year for the year before.
When buying services and products- collect and upload to the platform of your accounting service all invoices, bills, receipts, etc.
Salaries and Wages do not exist in a Limited company because all money which comes does come in the form of invoices.
Social contribution to health and general social welfare (duty of citizens) is not paid if no salary is taken.
When studying full-time master/doctorate study - social welfare, back to education and back to work (for business establishment) don't apply. Review in own country as might be different.
Check Social and health contributions e.g. PRSI contribution etc.
Establish well the moment (if there is an option or will) to just become a consultant (contractor) within a limited company or balance additional income as a limited company (better than sole trader) and full-time contract with the employee.
Research, learn, find what is the best for you.
Sample - Republic of Ireland:
Income tax from € 33,800 - 20% (including employers - full-time contract, over € 33,800 - 40% and more), € 50,000 - 40%.
Service activities: Sales of services over € 37,500 a year in tax will be higher. the growth is good.
Pay less tax or do not start private retirement - more on this in another post.
To open a company account - CRO is needed - the certificate of the established / activity of company done by accountant in Revenue.
Private Car (NCT register) - 50% of private fuel plus insurance, tax, service, NCT.
Commercial in Diesel (VRT register) - 100% fuel (plus all expenses).
Review everything in detail.