Choosing a limited company accountant

We all know that along with great power comes great responsibility.

So, first-time limited company directors should prepare themselves for the endless stream of accounting demands that come as part of the deal.

Luckily, though, you get to choose a sidekick – in the form of a limited company accountant.

Why do I need an accountant?

As business structures for self-employed people go, limited companies are heavy on the admin.

The timeline of reporting far exceeds that of sole traders, who only need to worry about the annual Self-Assessment deadlines (as well as any VAT reporting, if applicable).

However, a limited company must consider the following:

• Set-up – becoming incorporated with Companies House
• First accounts – initial accounts are due 21 months after you register with Companies House
• Annual accounts – at financial year-end, a set of statutory accounts must be submitted to HMRC, all shareholders, people who go to the company’s General Meetings, and Companies House. These accounts include a balance sheet including assets and money owed, a profit and loss account, a director’s report and notes on the accounts.
• Corporation tax – nine months after the company’s accounting period for Corporation Tax ends, the company must declare what tax is owed, and pay HMRC.
• Company tax return- 12 months after your accounting period for Corporation Tax finishes, the company must submit a company tax return detailing profit and loss specifically for Corporation Tax, and your Corporation Tax bill.
• VAT returns – if eligible, the company must submit VAT returns to HMRC every 3 months.
• Self-Assessment – the annual Self-Assessment tax return is also a requirement for directors of limited companies to cover salary, dividends and more. This is due by 31 January each year.

The above list just covers the ‘big’ stuff that you’ll need to submit throughout the year. The day-to-day running of a limited company is intensive, too.

This is where hiring the right limited company accountant comes in.

How can a limited company accountant help?

But what exactly can a limited company accountant do for you and your business?

Here are just a few ways they can help:

• Accounts preparation – an accountant can take the lead on preparing and filing your company accounts according to your company’s personal reporting timeline.
• Tax – an accountant will guide you on what Corporation Tax your business owes, as well as ensure it’s submitted on time each year.
• Self-Assessment – your accountant can complete your annual tax return based on the information you provide them with.
• Payroll – once you’ve provided them with the relevant information on your employees, an accountant can run your monthly payroll on your behalf.
• Bookkeeping – keeping track of every penny that enters and exits your business is a laborious task which can be lightened with the help of a limited company accountant and some top-notch accounting software.
• VAT – your accountant will prepare your VAT returns every quarter.
• Compliance – an accountant will ensure you’re compliant by law, by keeping accurate records and using their knowledge of rules and regulations.
• Tax-efficiency – by applying their expertise, your accountant will help prevent your company paying more tax than you need to.
• Growth – financial planning advice and growth forecasting are part and parcel of a limited company accountant’s offering.
• Freedom – ultimately, you pay your accountant to take the tedious, boring admin off your plate so you can concentrate on running your limited company.

How to choose the right accountant

So, where should you start when it comes to choosing a limited company accountant?

Step 1 – Decide on the support you need

You probably have an idea on how much accountancy support your growing business will need. Will you be running payroll yourself? Would you require face-to-face meetings at all? What about VAT registration?

Step 2 – Prepare to change your mind

So long as they’re not obviously trying to upsell their services, be prepared to listen to an accountant’s advice as to how much support a business of your size, turnover and expansion plan usually needs.

Remember, an experienced accountant will have seen many new companies come and go.

Step 3 – Get a quote

Ask for a quote for an accounting package with a fixed monthly fee to avoid hidden charges.

QAccounting offer free, no-obligation quotes for our services, so try our rapid quote generator today!

Step 4 – Trust your gut

You need to be able to have open, honest and frank discussions with your accountant – do you feel comfortable doing that?

Hopefully, you’ll be working together for many years to come, so if you don’t get a good feeling after your initial contact with an accountancy service, then go with that instinct.

If you want to learn more about our limited company accountancy service, please contact us and a member of our team will be on hand to help!