From: "Troy Steadman" 
Newsgroups: uk.business.accountancy uk.finance
Subject: Re: For Pete: Overtrading in the Construction Industry
Date: Fri, 21 Jan 2005 15:28:55 +0000 (UTC)
Injector-Info: news.mailgate.org; posting-host=82-43-209-105.cable.ubr10.newm.blueyonder.co.uk; posting-account=125090; posting-date=1106305996

"Simon"  wrote in message
news:35c5pqF4j9c0aU1@individual.net



> No accountancy fees paid as Accountant A wont touch him with a barge pole 
> and accountant B is just too expensive.

LOL very sweet!

But the industry pressures run deeper even than this! Bob is a quality
craftsman and in great demand and can work wherever he likes, he does
loads of jobs for cash which is just as well because he has a lot of
subcontractors to pay in cash.

At £400K (or whatever it should be) he is reaching the point where he is
ceasing to be a builder and starting to be a businessman. He will have
several jobs on the go at once including prestigious clients who quite
clearly will have to be "legit" so he need trustworthy high quality lads
he can leave on site and *know* that they will do the job properly!

Only problem is: the only way he can get them to work for him is
to match the other bloke who wants to pay them cash.

And BTW Accountant B is *cheaper* than Accountant A because
Accountant A doesn't trust anyone not even his own staff and insists on
doing everything himself. The lifting of the Audit threshold hasn't
helped him one bit, he audits every one of his clients in case they are
doing something wrong.

Accountant B on the other hand spends 2 minutes to an hour on each
client, bangs through a few journals to do the best he can for them,
gets Bob in the office and gives him a stern lecture about (what is
essentially) Bob's efforts at paying his subcontractors' tax and NIC for
them.

CR Stocks, CR WIP, CR Accruals, CR *anything* except Sales ;) but most
of all:

CR Drawings
DR Subcontactors

cross fingers and hope for the best!


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