Company directors have a lot to contend with, and while it’s vital to be aware of every aspect of a company’s finances, overseeing the tax and accounts is one of the most frustrating aspects of being a business owner. If you are running a limited company, do you need to use an accountant? While there is no legal requirement for limited companies to use an accountant, there are numerous benefits in having an accountant take care of your finances.
What can an accountant do for a limited company? Having an accountant to take care of the company accounts provides help in a variety of ways.
In large businesses, payroll is usually managed in-house, but smaller companies can benefit from the input of an accountant to specialise in the payroll components. The payroll can be a difficult component because of the various rules and regulations that are likely to change. Allowing an accountant to take over this aspect allows business owners to focus on the company.
An Accountant Can Set up a New Business
Having an accountant means they can register your company with Companies House, which can help in many ways at the very outset. When a business is starting out, an accountant can advise you with the best ways to approach being a quality employer that follows the rules for example they can advise you on your tax liability but also work with the HMRC on your behalf to register you for corporation tax and VAT.
Tax Returns and Annual Accounts
Accountants London can be the best way to help you fulfil your responsibilities as far as annual accounts and tax returns are concerned. If a business does not comply and file their accounts with HMRC and Companies House every year, they could find themselves struck off the register, or face hefty fines, or be on the receiving end of legal action. An accountant will make sure the relevant paperwork is submitted in annual accounts and tax returns. Tax returns are a legal requirement and can be a daunting one. This is why an accountant can prepare it, and also calculate how much corporation tax you owe.
Limited companies need to be aware of the time-consuming practise of bookkeeping. Smaller businesses need to log every single receipt or invoice, but larger companies can find this a struggle due to the influx of custom and transactions. Logging every single receipt and invoice is vital. With any missing paperwork, if the HMRC demands an audit, this could leave your business with hefty fines. An accountant can help your limited company by organising and collecting your books with efficiency.
In addition, hiring an accountant for a limited company will give you peace of mind. You could calculate the hours you would spend working on spreadsheets and paperwork, just to see how invaluable an accountant is. An accountant has finite knowledge, guaranteeing your business and your finances are in professional hands. It is almost impossible to keep up with various tax regulations, which is why an accountant could be an invaluable asset to your limited company.