Ask MetaFilter questions tagged with accounting

Where can I learn about accounting and small business administration?

Tarumba — Thu, 26 Nov 2009 10:12:15 -0800

Where can I learn about accounting and small business administration? My husband and I own a small record label. In the last couple of years, it began picking up, and at the moment we find ourselves working with at least 5 bands at a time. Anyway, things are paid for, records designed and printed, artists fees met, and revenue is received, all in an incredibly disorderly manner. We tried to keep track of things but we have come to the realization the we haven't a clue about how to do it. a friend even told us that it was very silly of us not to keep track of our business expenses for tax purposes, and also said we should be paying ourselves wages. Is this true?

Can you help me find a place were I can learn how to manage a small business, that isn't necessarily college? I am thinking something on the lines of accounting/business administration would help, but i definitely don't want a degree, since I may soon start graduate school, and my husband is currently enrolled.

Becker and Wiley and Bisk, oh my!

otters walk among us — Wed, 11 Nov 2009 06:57:28 -0800

Have you taken a CPA review course? Which one, and why did it work / not work for you? I'm trying to decide which course to buy, but there's so many options (Becker, Bisk, Gleim, Roger, Wiley, Yaeger, etc.) and, of course, they all claim to be wonderful. I'd very much appreciate your thoughts on the review course you took and if / why it worked for you.
I think that I would prefer a mix of methods, such as online videos, flashcards, and ability to ask questions of someone somewhere. And practice exams, lots of practice exams. An all-textbook review course would put me to sleep.
The only limitations are any software must be mac compatible, and real-world classroom attendance would be difficult unless classes are offered in western Massachusetts.

How to account for stock merger in MS Money?

Sweetie Darling — Sun, 08 Nov 2009 07:04:55 -0800

Looking for a Microsoft Money/ Quicken expert - or any smart accounting/finance person, really - to help me figure out how to document the recent Pfizer-Wyeth merger in MS Money. Pfizer merged with (acquired) Wyeth on Oct. 15. Eligible shareholders received $33 cash and .985 shares of Pfizer for every share of Wyeth we held, plus a cash payout for any fractional shares.

In MS Money, do I

- Sell Wyeth and Buy Pfizer? If so, at what prices - the closing prices on 10/15 ($17.66 PFI, $50.39 WYE)?

or, do I

- Remove Shares of Wyeth and Add Shares of Pfizer? If so, how do I account for the $33/share of cash?

Also, how do I document the fractional share payout?

I found these FAQs on the Pfizer webpage http://media.pfizer.com/files/investors/shareholder/Pfizer_Wyeth_FAQ.pdf and this question-and-answer on a different forum http://www.rockryno.com/quicken/How-do-I-handle-the-recent-merger-of-Pfizer-and-Wyeth-19406-.htm, but I'm still not sure I understand the mechanics of recording this in Money.

Thanks in advance for your help. This is making my head hurt.

How to convert credit card debt to a business loan?

KathrynT — Fri, 06 Nov 2009 15:31:41 -0800

You are not my accountant. How do you convert personal debt to business debt? My sister-in-law and her husband are the owners of a chiropractic practice with no employees other than themselves. They opened the practice shortly after being married, and paid for nearly all the startup costs with their credit cards rather than securing a small business loan. The business is doing fine, or anyway as fine as it really can be given the economy; they have a steady and increasing client stream, and word of mouth is getting out.

But their interest rates have been hiked on their credit cards, and now they're facing increasingly enormous minimum payments that are really affecting their ability to get by. In retrospect, their decision to use credit cards for this purpose was pretty poor, and they recognize that, but barring a time machine, they can't change that now. In this economy, what's the chance of them getting a business loan now? Is there any way they can convert this massive unsecured consumer debt into a business debt that's more reasonable, interest-wise? Any other advice for them? They're in a largish city in the Pacific Northwest.

Inventory in Quickbooks...different question this time.

daniboi1977 — Mon, 26 Oct 2009 19:19:23 -0800

How to simplify inventory management of jewelry materials and products in QB 2009 Premier Retail? I'm entirely self taught with QB, and have learned a lot, but I'm trying to simplify my current process of managing my inventory. Here's what I have right now. I manage my raw materials in a separate program that does not "talk" with QB. I use this program when I make an item to track how many beads, clasps, etc I use on each piece, and to determine cost and price. In QB I have an asset account called "raw materials" and one called "finished jewelry". The raw materials account is simply the total value of all the raw materials on hand, it does not track each individual item. Each finished piece is a separate inventory item. When I create a new piece, I add it to my "finished jewelry" asset, then do a quantity adjustment to transfer the cost from "raw materials" to "finished jewelry". All of my pieces are one of a kind, so at some point, I am going to hit the limit of how many items I can have. I would like to set it up so my inventory items are more general.

For example, I have 5 bracelets which all sell for $25 a piece. However, each one has a different cost, depending on what materials were used. Is there a way that I can have one item called "Bracelet25" versus having 5 different items? And how would I go about accounting for transferring the cost out of raw materials for each item both when it is made and when it is sold (for COGS)?

I would like to subscribe to your newsletter, and give you my card!

cgomez — Fri, 16 Oct 2009 09:21:59 -0800

Help me network like a professional. What are common mistakes that soon-to-be graduates make at network events? What is proper etiquette for name exchanges, gracefully making one's way into a group conversation, and how one does one make an impression without coming off too strong? Particulars after the break. This is a large networking event for accounting students put together by the campus and about twenty accounting firms. If anyone has experience in this job field specifically, that would be great. The purpose is mainly for students to get to know the different firms by briefly meeting representatives and staff from each and asking questions. What is the best way to ask thoughtful questions, but how do I incorporate myself into it or somehow make it more memorable?

Also, I'd greatly appreciate just any general advice for dealing with situations I may not be thinking of.

Online donations

chickaboo — Tue, 25 Aug 2009 09:42:43 -0800

What is the best way to accept donations for a nonprofit organization electronically? I've looked at paypal and google checkout... is there a simple way to collect donations that would allow the donators to indicate what they want their donations earmarked for? line by line if possible? Would welcome any hints or suggestions. Have you used google checkout? They dn't seem to have the ability to break down the donations in this fashion, unless I'm missing something.

Help me gain better administrative skills at my nonprofit -- audits, accounting, and taxes

johnasdf — Wed, 05 Aug 2009 12:59:31 -0800

Help me with my nonprofit's accounting and audit practices. Just looking for some general tips on (1) learning the basics on accounting; (2) learning how to prepare audits most efficiently; and (3) bonus points for help on the more stringent 2008 IRS filing requirements for nonprofits. I run an arts nonprofit and in a month, my part-time administrative director is leaving. While she is not a bookkeeper or an accountant, she does a variety of related services, such as preparing our files for our audit, paying our bills, doing bank deposits, entering invoices and deposits into Quickbooks, etc.

She and I are planning to put together a new system that will probably involve hiring a part-time bookkeeper, but I will probably have to take on more administrative responsibilities, including the 2008 returns (we got an extension) and the 2008 audit. While we do employ an accountant to help prepare our books for the audit (as well as, of course, our auditing firm), I'd appreciate any advice on the following:

1. How to get a general knowledge of accounting and related business practices. I currently do the budgets (and took a college accounting class), but I'd like to be less intimidated by bookkeeping practices, software, and general administrative process involved with running a small business.

2. Best practices on how to do an audit.

3. Tips on the new more stringent 2008 IRS filing requirements for nonprofits.

I'm generally looking for links to websites or pdfs that might be educational, as well as general tips & suggestions based on your best practices. Thanks!

Keeping moneys separate

Precision — Thu, 25 Jun 2009 21:14:19 -0800

What's the best way to keep my summer income separate from my savings? It's the summer between high school and university, and through scholarships (I'm a National Merit Scholar) and working quite a few hours at a part time job during high school, I've managed to save up enough to pay for the entirety of my first year of college, and likely the rest.

I quit my job upon graduating, promptly got bored with my idle time, and got a job waiting tables. I'd like to keep this money separate from my savings/checking accounts at Chase, and either use it at the end of the summer to buy a nice guitar, pay for a trip to Europe, or any number of things. I'm honestly only working right now for the fun of it.

I figure I have a few options: 1) Just tag all the income on Mint as "Summer Income" and tally it that way. 2) Open up another savings account at Chase with my first $300 in income and keep it separate that way. 3) Open up an account at Wells Fargo ($100 minimum balance, no monthly fee for college students) and keep it all over there to ensure it doesn't get mixed in with my money.

What's the most painfree way to do this?

Jobs for tax accountants?

velvet winter — Thu, 25 Jun 2009 19:44:25 -0800

What kinds of jobs are available for tax accountants? In a few weeks I will be finished with my post-baccalaureate certificate in accounting, and I’m looking for entry-level work in the tax field in the US. This is a new career direction for me; I’m 41 years old, and I have no professional accounting experience yet. Most of my previous work experience is as a teaching assistant, freelance writer, and administrative assistant.

I’m a hardcore tax nerd. I enjoy tax research, reading tax blogs and books about tax theory and history, and even digging through the Internal Revenue Code. I’m also a classic introvert, am very organized and self-motivated, and work well independently. I’m happiest when I have a certain level of creative and intellectual challenge – doing things like helping to solve technical problems, tracking down arcane details, or writing summaries of complex information for laypeople or non-specialists.

I’m having trouble figuring out what kinds of tax jobs would best suit me. I don't mind preparing tax returns, but I'm not sure I'd want to do that full time. What other choices do I have? Tax associate? Tax researcher? Compliance (international, federal, state, or local)? Something else entirely?

So far I’ve ruled out tax law, since I have virtually no interest in going to law school. I’ve also ruled out continuing on in academia, because I’ve already spent many years as an academic (I have two liberal arts B.S. degrees), I don’t have much interest in teaching, and I don’t want to pile on any more student debt. I need to have a steady income coming in soon. I do plan to obtain my CPA credential in the future, but I want to get a good bit of work experience under my belt first.

I’m looking for book recommendations, websites, and any other resources that would help me decide what kind of job would suit me best. I would especially welcome first-hand “day in the life” accounts from people who work in the tax field. What do you do, and what is your job title? What kind of background is necessary to do your work? What do you like and dislike about your job? What kind of hours do you work, and what are your co-workers like? Are there layoffs going on where you work, or do you feel like your job is relatively recession-proof? What do you wish you’d known before you started your job? What advice would you give to someone just starting out in tax accounting?

I got taxt problems and need a CPA in New Joisey!

TwilightKid — Wed, 10 Jun 2009 08:06:42 -0800

Can anyone recommend a good CPA and/or Tax attorney in the Montclair / Caldwell area of New Jersey? Several potential tax issues and or problems I am facing....More after the jump... Ill try and keep this as basic as possible. The CPA I have been using for the last 8 years has suddenly went AWOL, and has seemed to have disappeared of the face of the planet, without filing my 2008 taxes. The guy has been great for a while and did a superb job with my taxes, until last year when he first started acting a bit weird and flaky...

1) I sent all my tax info for me and my family, and my LLC business to him in the end of February and stayed in relative contact with him through April 15th. Each email or phone call promised that my taxes would be done in a day or two and we were good to go. The last time I heard from him (via email) was on April 15th, saying that he would file an extension for me, but have the taxes done by the end of the week. That was the last I heard from him. I have called, faxed, mailed, and even stopped by his home office to no avail. I went to the IRS to confirm that he did not file an extension for me, which he did not. Interest and penalties are building as we speak...I have begun reaching out to my banks, and jobs for end of year tax papers to present to a new CPA.

2) My 2007 taxes had some major problems. He did not report a huge amount of my retirement funds, and I received a scarly letter from the IRS, saying I owe them a ton of money. A brief call to a few tax attorneys, and they both felt that it was easily solvable as my CPA simply forgot to submit certain info...However, interest and penalties are there, and Im not sure how to rid myself of those as well.

3) I moved to NJ and transferred my business over here, and with some bad advice, i neglected to file my quarterly taxes, and simply did the state and federal returns at the same time. Now, I have problems with the state of NJ for failing to report....

I do not have a contract with this CPA, but I do have countless email exchanges where he is aware and acknowledges that he is handling my taxes for my business and personal. I am in the process of trying to find someone else to get me out of this whole....Can I hold him responsible for all these costs I am about to incur? Attorneys? new CPA, Penalties and interests for his mistakes? Is this a small claims court procedure, or do I look bigger? Can i hold him responsible for all of his negligence? Is there accounting networks and organziations I can report him to?

I do not have a ton of $$ to spend on a new CPA, but looking for someone who can help me out....Any advice is appreciated.

Money down under!

Basalisk — Sat, 18 Apr 2009 04:36:03 -0800

Personal accounting help please? Australian with PAYG, Superannuation, and so on. I know you are not my accountant or financial advisor or taxman. I'm Setting up personal accounts in GnuCash.

How does one account for PAYG withholding? I'm assuming it's an asset until 31 June, when its used to pay for the tax expense. Any refund goes from this asset to the bank account asset where the refund goes, but if I need to pay more, it's a split transaction to tax expenses from bank account and PAYG account. This leaves the question of how I find out how much is withheld. What if I've worked for a few different companies, and/or haven't been keeping track?

Secondly, superannuation. I assume that the withholding from my salary goes into a superannuation account, and any investment profit or loss comes from an 'investment income' account.

I think I know how to deal with the few personal loans I have. Liability is how much remaining on the loan, each payment is a split to interest expense and a (disappointingly small) amount of principal.

Also, bills go from expenses to an account payable liability. Then when I actually pay it, from the bank account to accounts payable, right?

Thanks for your time, MeFi!

Money for nothing.

Anonymous — Tue, 14 Apr 2009 07:40:57 -0800

Tax Filter: Do I need to report winnings from a contest? If so, how? I received a cash prize of $5,000 in a contest. I was required to fill out a W-9, but I don't think I received a 1099-MISC (or anything else) for the prize amount. This was not a sweepstakes or a contest of chance or anything like that, but more of a "reward"; a recognition check of sorts.

How do I account for this? Straight up "other income"? Or do I need to at all, in the absence of the 1099? (My spidey sense tells me that even in the absence of a report from the other company, it's still my responsibility to report all income, right?)

I'm aware you're not my accountant, and this is not legal advice, etc, and that simply not reporting the income is almost certainly not an option (though I have to admit, it shifts my burden from owing $1,300 to getting a refund of $600, which is, well, mighty tempting.)

How does it work from the IRS side? If the company that gave me the check reports it, the IRS looks for it to be reported back properly on the other side, based on my social? And an omission of that income on my side will likely result in an audit?

Moreover, if someone legitimately forgot to include this income, (which I'm *not* proposing to do, but could EASILY see happening, as I won this at the beginning of the year and didn't receive anything since then) is it just automatic audit ahoy?

(Other pertinent info: In the US, if that weren't fully obvious, earned in the $40-$50k range, filing single, no dependents, otherwise unremarkable return.)

Green Eyeshades Needed

Barrows — Sun, 22 Mar 2009 18:01:57 -0800

I'm trying to set up Quickbooks and accounting was never my game... here's a type of transaction I find that I do alot and need to find out the right way to book it: If you pay a business expense with your personal credit card (say $100) Then you pay your personal credit card from your business account ($1000) would you

credit expense 100
debit cash 100
credit credit card 900
debit owner's draw 900

Basically the business pays out 1000 to the credit card bill but 100 of that credit card bill was a business expense and the rest was "draw" (income) for the business owner. Thanks and YARMA but ILY

How can the Fed Destroy Money It Created?

Pastabagel — Thu, 19 Mar 2009 07:41:35 -0800

[MonetaryPolicyFilter] In relation to the Fed's huge injection of money yesterday, please explain to me how, if at all, the Federal Reserve can destroy money on its balance sheet in a way that offsets the inflation that normally would result. The Fed's announcement yesterday that is it going to flood the economy with dollars would, in normal circumstances, be horrifically inflationary. But these are not normal normal circumstances. My questions are:

1) Why isn't this inflationary? To what extent have deflationary factors stemming from the credit crisis not yet worked their way into the economy such that they will offset what inflation results?

2) Explain Federal Reserve accounting to me. I sort of understand that the Fed can create this $1 trillion from basically thin air, but can it destroy money just as easily as it creates it?

3) Because the Fed is buying debt and debt-related instruments, can the Fed take the principal and interest payments it receives from these debtors (e.g. the U.S Treasury), and destroy that money just as easily as it created that money? In other words, when Treasury makes interest payments to the Fed on the bonds the Fed bought, can the Fed simply take that money and strike or "disappear" it from it's balance sheet forever?

4) If the Fed can do what is described in (3), is that the mechanism the Fed intends to use to avoid inflation that would normally result from such a huge injection of money? Has the Fed said anything about what it intends to do with the interest payments it receives?

5) Any resources related to Federal Reserve accounting or explanations of how its balance sheet works would be greatly appreciated.

I'm looking for accurate financial answers here, not lunacy or chatfilter. Thanks in advance for your help.

Help me find the right online personal accounting software

tippiedog — Sat, 14 Mar 2009 07:49:57 -0800

Which online personal financial software/web site offers 'old school' checkbook ledger-type functionality? I'm old enough that I grew up in the age where you entered your transactions in your checkbook ledger as you made them and then reconciled your ledger to your bank statement. I've used Quicken for a decade to do basically the same thing in a software version.

Plus, I'm a control freak and want to know exactly how much money I have actually spent--not just what my current balance is.

Now, I'd like to move from Quicken to an online application and would like to continue to manage my bank accounts 'old school.'

I've tried mint.com and Quicken online, but they both only really support account management without (or with minimal) manual entry.

I would still like the app to get my bank account feed, but I'd like it to work like old-style reconciling: match my entries up with the bank's cleared transactions.

iPhone support would be a big plus.

What kind of records do most sole proprietors, freelancers and consultants keep?

Anonymous — Tue, 17 Feb 2009 19:39:33 -0800

What sort of state of organization are the financial records of most sole proprietorships in? I've had a small freelance business for about 15 years. About 3 years ago, I was in a car accident that was 100% not my fault. (The other driver admitted fault and there were witnesses.) I am now in the middle of legal dealings with my insurance company, because of the state of whiplash, the effect on my pregnancy and the effect on my ability to run my business and maximize earnings. (I do have a lawyer.) The insurance company is asking for all my financial records from the past nine years. They want copies of every receipt, invoice, mortgage interest statement, etc.

I've never kept a general ledger or anything like that. I just invoice and pay my expenses and credit cards and stuff like that. I've never been very formal about things, although I am excrutiatingly honest. I don't lie on my taxes. However, there have been situations where I just phoned the mortgage company to get the interest amount for my mortgage for the year (for business use of home), because I figured that if I got audited by the government, I would just phone and get a statement sent out. And, as I mentioned, I don't have cash flow statements or anything like that. And sometimes my receipts are in my name, my husband's name or both our names. But I always put money into our joint account to cover everything, usually lump sums throughout the year.

I had planned to incorporate and set up with an accountant, but, because of the car accident, I am just beginning that process now. Going forward, my records will be more diligent, since I'll be incorporated.

But, I'm wondering...what is the typical state of financial records for most freelance and consulting type businesses? My lawyer seems baffled that I have unaudited records...he's not used to sole proprietors. He seemed surprised that I had been doing my own taxes (for all but 3 of the total years, because, honestly, the accountants never got me any more tax back than I got on my own). For the most part, my business records are my personal income tax records, since the sole proprietorship income tax is part of that. I never saw any point to doing balance sheets and neither did the bookkeepers or accountants. Are other freelancers and consultants in a different situation? (Again, I'll be changing this going forward.)

How do I get turbo tax for Mac OS if I have a windows subscription?

telsa — Sun, 15 Feb 2009 21:01:18 -0800

How do I get turbo tax for Mac OS if I have a windows subscription? I am a recent convert to the Mac systems, but have always used Turbo Tax with windows. Currently, I have a subscription to download the Windows version of Turbo Tax from the Intuit site. If I had ordered the CD, I could just use the CD to install either windows or Mac version. It seems right now I'd have to setup another subscription to actually download the Mac version. This doesn't make sense to me as I wouldn't have to pay extra if I just ordered the CD in the first place. Is there something I'm missing where I can go to download the Mac version?

Raw materials into scrap for later use in Quickbooks?

daniboi1977 — Wed, 11 Feb 2009 15:43:04 -0800

How do I transfer raw materials into scrap to use later in Quickbooks Premier 2009? Hey everyone, I searched the archives, but didn't see anything that was similar to this. I apologize if it has been asked before and I missed it. I own a small jewelry making/selling business, and have recently started using Quickbooks Premier 2009. I have all my raw materials listed as inventory items, which I then combine into a "build" for a finished product. When I'm working, I often generate "waste" silver, which can't be used in a project, but which I can later melt down and cast into something else. Does anyone have any idea what the best way to handle this in quickbooks would be? Would I just make another inventory assembly item called "scrap silver" and transfer amounts from the original form (i.e. 14 gauge wire) into it? Or should I treat it as some type of account?

I'm extremely new to quickbooks, but have figured out the majority of what I need to know to be up and running, I'm just somewhat stumped with this. Any help would be great. Thanks!

How do I master my small business’ accounting and financials?

battlecj — Tue, 02 Dec 2008 07:19:04 -0800

How do I master my small business’ accounting and financials? My wife and I own a small retail shop. We do our accounting faithfully in QuickBooks and file most of our tax returns and process our own payroll. According to review by our accountant, we are running our numbers correctly, but what do all these numbers mean? We want to have a better understanding of cash flow, profit and loss, and our balance sheet so we can make better financial decisions. Are there any books or online courses that teach this well? Ideally, any course would have tests so we can really measure how much we are learning. This looks intriguing, but I wanted to see if there were resources out there that are escaping my googlebatics.

Making Books Isn't Rocket Science, But It Might As Well Be For All I Know About Publishing Math

ocherdraco — Thu, 20 Nov 2008 11:14:36 -0800

Publishing filter: Where are some good resources (books or online) to learn about book publishing math, both the way budgets are put together for individual books (and how those budgets actually shake out once a book is in stores) and how budgets work across a whole company? I work at a medium-sized publishing house in New York (but have no ability to publish your manuscripts, before you ask). Since publishing basically works on an apprenticeship system, I'm having to learn things as I go along. Folks above my station have been able to explain to me the basics of how this stuff works, but I haven't been able to find anything that'll give me a detailed understanding of how this stuff—Profit & Loss statements, writeoffs, royalty accounting, how production costs are factored into profits that come months after a book was produced—all works. I understand that every company works differently, but much of this must be the same across companies. Do you know of any places I can go to learn more?

(And yes, hive mind, it is faintly ridiculous that I'm asking you rather than marching up to the office of my company's CFO, but he's a little intimidating, so I'm hoping you can help me first.)

I swear, I am not this stupid.

Medieval Maven — Sat, 15 Nov 2008 09:12:17 -0800

I'm in over my head, and I just need a system that will help me do some very, very simple accounting. We have a 501c3. It's doing >$5,000/year in donations/income, and I need to file our taxes. I have attempted Quicken for my personal finances and just hated it. I tried Gnucash, and I feel like it's written in another language. I am at a loss and just need to figure.this.shit.out. A little more info about what we do:

Shows are free. People make donations as they come in or leave.

For a flat donation, patrons can have reserved seating and they can order catering at an additional cost. We make *nothing* on the catering.

Snacks and drinks are available for $1 donation per item at every show.

We do a fundraiser event where tickets are $5.00 and concessions are $1 each, all considered for our ease of use, donations.

Since it's all "donations" to us, we do not track specifically what is in the basket versus what we make on concessions; we do know what we make on tables vs what we pay out for catering because it's an online reservation/donation system.

We have a bank account, and I download our statements religiously.

I can consult an accountant friend, but I need to have the information organized in a coherent manner when I do, and currently, it ain't. This person is not going to DO our taxes for us, nor are we able to afford an accountant as all of the 501's money goes to its mission. Please do not lecture me on this count, as it's not helpful to my problem. I know we could use an accountant, but I could also use a vacation in Aruba.

Accenture v. Big 4 Accounting: Which job do I take?

demagogue — Fri, 07 Nov 2008 17:16:19 -0800

What's working at Accenture like? Specifically, in the Systems and Integration practice, although I am hoping to move to the Management Consulting practice-- the recruiter says that employees are eligible for consideration for that switch after a period of 2 years (quite likely to be recruiter BS, I understand).

I'm weighing an analyst position in the Systems and Integration practice against an entry-level accountant position with a Big 4 firm. Americans: think CPA; Canadians/Ireland/Aus/etc.: think CA.

FWIW: The consultant job pays a little more than 15,000 in the first year. I think for me personally, it's that I think the consulting job has a 80% probability to be more interesting, and it will probably pay better; in 5 years though, I think the exit opportunities might be a little better with the CPA/CA, possibly hours and money-wise. That's what I think, though.

Sgould I become a limited company? (UK)

hatmandu — Thu, 30 Oct 2008 04:15:56 -0800

I've been a sole trader for 10 years, but calculators such as this suggest I could save maybe £2000 a year on tax by becoming a limited company. Have others found it worthwhile? I'm aware the incorporation means more paperwork, as I'm already a director of another small company, though that's largely defunct now. As far as I understand it there are two main options for income in this way:
1. Draw a salary
2. Draw dividends. The site mentioned above suggests a salary of around £5000, and taking the rest as dividends as the way to minimise tax burden.
Does anyone know if it's legal/sensible to go down a third route:
3. Subcontract work to oneself as a sole trader. (ie so corporation tax is only paid on profits above the costs of subcontracting and other expenses, and I would pay normal personal tax on the profits from the contracts.) Or is this not allowed? Or too complicated?

I'll need to talk to an accountant about all this, of course, but any relevant experiences would be interesting to hear. (I'm below the VAT threshold, by the way.)

Master's programs in accounting for non-accountants: Where?

onepapertiger — Mon, 29 Sep 2008 13:41:00 -0800

I'm looking for a more complete list of Master's in Accounting or Master's in Professional Accounting programs designed for people with non-accounting bachelor's degrees. So far I have identified ones at UNC, Vanderbilt, San Jose State, University of Texas (Austin and Arlington campuses), Arizona State and University of New Mexico. Am I missing any?