New user - sole trader vs limited company

Hello there,

I am a new user, trying to figure out if QF is the right thing for me.

My business is currently filed under “sole trader” but I want to become a limited company within the next 3 to 5 years. I dislike the idea of having to move everything then. Should I even bother with filing things under QF already?

Also, my work is partially time based, partially quantity, other ways are package prices which will need to reflect the time used. I haven’t figured out yet how to set this mixture up :frowning: .
What I am also missing is a proper time sheet / project management area BEFORE I set up invoices. Is there anything planned to make it easier?

It might be ok, if I could feed those things in, but I am no programmer and find the API area very difficult to understand and would much rather have a button which makes it easy to feed project management/reporting/payroll (apps/websites) etc in automatically without me needing to learn programming (or whatever this api area is requesting).

I am not a bookkeeper/accountant by trade and therefore hoped to find your site useful, but I simply cannot figure it out yet, therefore I haven’t put any data in yet. And yes, I’ve read every section in your support/faq/help areas and also went through a lot of topics here in the community.

Help please???

Andrea

When you transition from sole trader to a Limited company, you don’t really move anything. As a Limited company is a completely distinct legal entity you would just open a brand new QuickFile account and start the from there, you don’t need to bring any of your sole trader activity into this account. We can however move the client and supplier records for you, as presumably this would be the same.

You can create invoices with a mix of time and item based entries. You just need to add the additional line types here.

This will pop open a menu allowing you to create an item or time based entry. Your invoice will end up looking something like this:

We don’t yet support time-sheets, it is something that has been discussed and will likely be developed at some point in the future. What many users do is just create draft invoices and add lines to these invoices when particular jobs have been done, later you can finalise the invoice and send it to your client.

The majority of our users aren’t bookkeepers or accountants so you’re in good company, we developed QuickFile specifically for the non-accountant. That said there is still a learning curve but you will find a great number of topics just by searching this forum, if there’s anything you’re unsure about just post a new topic and we’ll do our best to assist.

In many ways Limited company accounting is much easier than sole trader accounting as you’re not mixing personal and business expenses in the same account. Once your Ltd is formed you would go to your bank and setup a dedicated bank account in the name of that company.

Our sister company specialises in Company Formations so if you need any help here just get in touch.

Thanks Glenn for getting back to me.

I already have a dedicated business bank account, though every now and then things get mixed, e.g. certain bills for telephone etc are paid from private, and if I’ve forgotten to pay myself then the occasional shopping goes from the business bank. That’s definitely something I am going to miss once I am a ltd.
Would it make sense to already set up an account as ltd regardless that I am a sole trader to avoid future moving and as I already use a business account? I’ve set my company up from the start to become a ltd eventually, it is just a matter of growth and easier tax/accounting for the moment.

Yes, I would keep my clients and suppliers if I make the move, but won’t I lose my history with them when I move?
I like that your site is very cloudbased, but can I download everything for keeping a backup? Not a real fan of csv but I suppose that’s the only way?

Many of my tasks are split into small pieces for maybe 2 or 5 minutes. Therefore time sheets are sadly essential for my business, as I need to keep a record on what I did when and make it available as reports to my clients, but a month can easily have as many as 100s of little entries. A new line for each wouldn’t be very feasible for me there.
I do hope it is a feature of the near future, it would be most helpful.

I shall keep playing with the platform to get a better understanding.

Andrea

You can still do this as a Limited company as long as you tag these items to the Directors’ Loan account. This account can be used as a temporary ledger to track any money owed to/from the company by the director.

When you create a limited company you will need to go back to your bank and ask them to open a brand new bank account for the LTD. You can’t use the account you already have as it’s in your name not the company’s. This is actually beneficial as it keeps the accounting activity of you and your limited company completely separate.

You won’t lose the history, it will just be on your old sole trader account. All new invoices should be raised in the name of the limited company from the new QuickFile, it’s very important to keep everything separate.

You may in the mean time want to Google “Timesheet software”, I think there are a number of free cloud based timesheet apps out there, you can then just take the bottom line from there into QuickFile when you create your invoice.

Hm, business account is already set to business as I agree on keeping it separate, but it is obviously something I have to sort with my bank when it comes to it. Thanks for the mentioning of the director’s loan account. That’s good news indeed.

I will still not be able to use the structure I had for my clients I suppose (project descriptions, task lists etc). Again, I will cross that bridge when it comes to it.

I currently use a different invoicing site which has inbuilt project management/time sheets but doesn’t have an accounting facility. Had hoped to keep it all simple and under one roof and get away from awful spreadsheets for my cash flow and forecast and expenses. Will reevaluate my needs.

Anyway, thanks for all the clarification.

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