Any company directors’ favorite responsibility is rarely overseeing finances and taxes. It can be taxing (pardon the pun) stressful, and time-consuming, robbing you of time that could be better spent growing your business. Even if yours is still a very small company, there’s lots to do, and it rarely seems like there are enough hours in the day to get it all accomplished.
Around 61 percent of small firms in the UK rely on the services of a small limited company accountant, but do you need one for your limited company?
While using a small limited company accountant is not required by law for limited firms, there are many advantages to doing so, such as preparing your annual accounts and corporate income tax return. They can also help with tax registration for new businesses.
If you’re not sure if you need a small limited company accountant for your small business, allow us to explain why we think you do.
Hiring a professional team to manage your company’s accounts is rather like letting a genie out of a bottle if you’ve ever wished for more time in the day. Even better, there’s room for more than three wishes, thanks to a huge variety of services available to make your life easier.
If you want, your accountant can register your company with Companies House, which will reduce your paperwork – and headache inducing – burden in the early days of your new company. If you are an employer, even if there are just a handful of employees – they can also advise you on your new tax liability and work with HMRC to register you for VAT, Corporation Tax, and payroll.
Payroll is typically conducted in-house by major corporations, but for smaller firms, it is beneficial to delegate it to your small limited company accountant. You can say goodbye to days of your life each year spent wallowing in income tax calculations and HMRC paperwork. Luckily, there are payroll experts who adore doing just that (yes, that sounds strange, but it’s true. Some us do love doing payroll)
As your small limited company accountant, we’ll take care of the details and ensure that your company follows all applicable regulations and legislation, allowing you to focus on more exciting things. It’s also worth noting that outsourcing payroll to us will save money on payroll software and training.
VAT — you are not alone if these three letters give you the creeps. VAT is notoriously difficult to understand, and the rules are always changing. Your small limited company accountant will assist you in navigating your company’s VAT responsibilities and selecting the appropriate payment arrangement so that you do not overpay (or underpay). We can also make quick work of your quarterly VAT returns, ensuring that you don’t get hit with any unpleasant surprises, or a virtual visit from HMRC.
Bookkeeping is another time-consuming, tedious, but completely necessary activity for small businesses. It may seem tedious to keep track of every receipt and invoice, but no one wants to be searching for missing documentation at the end of the year (or if HMRC comes knocking).
Small limited company accountants, on the other hand, are diligent people who can manage your bookkeeping with the highest efficiency, freeing up even more time and mental space for you.
As a limited company, even a very small one, you are required to file annual accounts with HMRC and Companies House every year. Failure to comply may result in significant fines, and in some situations, companies may be removed from the register and face legal action.
Leaving this up to your small limited company accountant will make sure these things don’t happen. We will compile and generate the required documents and ensure that it is filed on time (if not before). A balance sheet, profit/loss account, a report from the company director (that’s you), and any other pertinent notes will be included, depending on the size of your organization.
Along with completing your annual accounts, HMRC will send your limited business a notification to file a tax return at the end of each financial year. The intention of this is to disclose your taxable profit; however, even if you make a loss or are below the tax threshold, you must still file it.
A profit/loss account is essential, but it must be a different version than the one contained in your annual accounts to make things even more complicated for those who do not love number crunching.
It should reflect adjusted profits, which are gross profits minus expenses and investments. The paperwork can be intimidating, but your small limited company accountant can help you prepare it and figure out how much Corporation Tax you owe. They can also send out reminders about when the payment is due on a regular basis.
If you’re still debating whether or not to hire an accountant for your small business, consider the time you’ll save spreadsheet surfing and fussing with paperwork, as well as the financial cost.
Consider the peace of mind you’ll gain from knowing that your finances are in capable hands and that you won’t be caught off guard by a bewildering array of rules, regulations, and laws.
Finally, factor in the money you’ll save from prospective tax savings, fine avoidance, accounting software purchases, and training. That genie is nothing compared to a dependable accountant (except perhaps for the outfit).
You and your company deserve every opportunity to thrive, and hiring the proper small limited company accountant will allow you to relax about your money and devote more time to growing your company.
Pearl Lemon Accountants has extensive experience in small business accounting. As a result of the team’s approachability and professionalism, you can expect excellent customer service too. We recognize that not everyone is as enthusiastic about accounting as we are, so we cut through the jargon and attempt to relieve you of the burden of meeting your financial obligations.
We will not only take after your business accounts as if they were our own, but we will also be proactive in discovering cost-effective and compliant ways to save you money.
You might be surprised how affordable professional accounting can be.
To learn more about how Pearl Lemon Accountants can assist your limited company, contact us today.