The overwhelming majority of limited companies use the services of an accountant to prepare their financial accounts. While there is no legal requirement for a limited company to use an accountant, there are considerable benefits in doing so. Taking care of the financial affairs of a limited company can be both complex and time-consuming. It’s rarely something that directors of a company relish unless they themselves have a professional background in accounting and financial management.
What can an accountant do for a limited company?
An accountant does much more than take care of the bare minimum of regulatory requirements. They can also provide a comprehensive set of services that help the business from start-up. As well as the practical and regulatory aspects of company financial affairs, they can also provide a valuable perspective on how the business is operating from a financial standpoint.
Setting up a new company
Having an accountant on board from the earliest days of your business can make the process of setting up a new company more straightforward. An accountant will register your business with Companies House, taking care of all the necessary paperwork to legally establish your business. They will also be able to advise you on the tax liability of your company, as well as ensuring that you’re registered with HMRC for VAT, Corporation Tax and Payroll if you’re an employer.
Bookkeeping is the practical recording of all the necessary information and documentary evidence required to help compile the company’s accounts. In practice, it means that every receipt and invoice needs to be logged. This is important not only for the accuracy of the company’s own records but also because HMRC may request to see the paperwork at any time. Bookkeeping underpins all the other services that your accountant may provide, ensuring you have regular reports on transactions and balances whenever they’re required.
Our bookkeeping service provides the cornerstone for your business accounting, giving you regular reports on all your transactions and balances as and when you need them. We keep things simple and straightforward, ensuring you have the information you need when you need it.
Payroll is essential in any business that has employees. In larger companies, this will tend to be managed in-house. Smaller companies will usually find it beneficial to outsource payroll services to an accountant. There are good practical reasons for this. Taking care of income tax calculation and associated HMRC paperwork every month can be extremely time-consuming. In most smaller companies, the human resources needed to devote to payroll are not available. Outsourcing your payroll can also save you money on payroll software and any training that may be required in order to operate it.
Venn Accounts provide a comprehensive payroll service for limited companies. This makes sure that your payroll is always up to date, fully compliant and is running smoothly. We make sure that HMRC and your employees are kept happy.
VAT is complex and, in some cases, may even feel deliberately confusing. The regulations can be liable to change, often with very little in the way of notice. Your accountant will take care of your VAT obligations, choosing the correct payment scheme so you never pay more than is necessary. They will be experienced at handling quarterly VAT returns and will make sure that you never face any financial penalties for late payments.
At Venn Accounts, our VAT services help you plan your VAT so that it doesn’t overburden your available resources and we make sure you reclaim everything to which you’re entitled.
All limited companies have a responsibility to file annual company accounts with HMRC and Companies House every year. Any company that fails to deliver these accounts on time could be on the receiving end of hefty fines. In the most extreme cases, companies could find themselves struck off the register and directors may even face legal action.
The documents you will need to provide will depend on the size of your business, but will usually include a balance sheet, a profit and loss account, and a report from the company director as well as any other relevant notes. Larger companies may need to provide an auditor’s report.
Our Statutory Accounts service ensures that you never miss a deadline but we go much further than that. We make sure that your accounts stand up to the closest scrutiny, as well as ensure that you’re firmly on track to meet all of your business goals and objectives. Smaller companies may find our Micro Entity Accounts service appropriate for their particular requirements.
Every limited company is required to submit a tax return to HMRC at the end of each financial year. This is required to identify your taxable profit and is required to be submitted even if you made a loss over the previous 12 months, or you are below the threshold to pay tax.
A profit and loss account is used to identify how much tax you’re liable to pay, but this is a different version to the one that’s included in your annual accounts. It will show your adjusted profits, which is your gross profit minus expenses and investments.
Your company accountant will prepare this document and will also calculate any Corporation Tax that you owe. They will make sure you receive a reminder in good time when payment is due.
Our Corporation Tax services keep the entire process simple, transparent and accessible. Our senior accountants will look at your accounts in detail and we’ll make sure you understand everything we cover and what you’ll need to do next.
Going beyond the basics
As well as providing services to ensure that you meet all of your statutory requirements, a limited company accountant may also provide a range of other support services. These can provide you with additional information and insight to help inform your decision-making process. It may ultimately help your business to grow and prosper. By providing real measurements of your performance, you may be able to take measures in order to improve it.
This additional information will usually be presented in the form of management accounts.
In addition to taking care of the essential practical, administrative and regulatory aspects of your limited company, your accountant can provide a range of information that can help with the day-to-day running of the business. This information can also help the company formulate strategic objectives and assess how these objectives are being met. Management accounts may not be something that needs to be produced by law, but the information that they include can prove invaluable.
Management accounts provide the company with a range of useful information to help with the running of the business. Your management accountant will produce these on a more regular basis than annual accounts, and the information included can have more practical purposes.
Because management accounts aren’t mandatory, there is no set way of preparing them. They may include a range of key performance indicators and may use measurements such as customer satisfaction, or how well your business is meeting its targets. As well as the raw data, they should contain insightful analysis of the figures.
Some of the objectives of management accounts will include:
- Measuring past performance to drive improvement.
- Avoiding cash flow problems.
- Knowing where to focus your efforts to increase profitability.
- Gaining future clarity about your business.
It’s clear that any limited company that has this level of information and analysis at hand is more likely to be able to make informed decisions about its development, giving it an advantage in the marketplace.
Our Management Accounts service allows you to draw on a well of professional experience and insight. We drill down into the financial data and look at the wider context to provide a comprehensive management consultancy service.
Do I need an accountant for a limited company?
It should be clear that using professional accountancy services for your business will not only save you time, it could also help your business to become more efficient, effective and ultimately profitable. It will save you hours that might otherwise be spent poring over spreadsheets and other financial documents, monitoring deadlines and ensuring that you meet all of your legal obligations.
To keep track of your accounts you will also need to invest in appropriate software as well as training to ensure that it can be used effectively. All of this takes time and a considerable investment.
If you decide to manage your accounts yourself, you will also need to make sure that you stay abreast of the ever-evolving range of rules, regulations and legislation. Although opting to take care of your own accounts and regulatory requirements will initially save you money, you will run the risk of fines if errors are made and the cost of the time that could be better spent taking care of other aspects of your business.
As well as taking care of the regulatory obligations for your limited company, your accountant may be able to provide analysis and information that could help your company become more efficient. This, in turn, could help you better achieve your long term goals and objectives.
How much do accountants charge for limited companies in the UK?
The costs you will pay for accountancy services will differ between firms and depend on the amount of expertise that they provide and the level of service that you’re contracting from them.
If you’re running a small business with straightforward financial affairs, then an outsourced accountancy service can be highly affordable for core support. The more extensive the level of services you require, the more the monthly/annual costs will increase.
At Venn Accounts, we are transparent about our fees and are happy to provide a truly bespoke service for our clients. We get to know your business and agree on the level of service that can best suit your needs.
Our Statutory Accounts service ensures that you are on top of your deadlines and that your accounts stand up to the closest scrutiny, ensuring that you are able to meet all of your business goals and objectives.
Smaller companies will benefit from our Micro Entity Accounts service which is tailor-made to their precise requirements.
To find out more about our range of services for limited companies, how we work closely with UK-based businesses, and how we can help your business grow and thrive, call 020 80 882 590 or email email@example.com to speak to one of our experienced accountants today.