7 Aspects That Accountants Can Help a Limited Company With
A limited company is quite a different arrangement from a typical corporation. It typically consists of multiple owners and a management team responsible for handling the business even without its owners. There are two key parties in a limited company, but the work is mainly driven by the latter.
As the owners are far removed from the daily operations of the business, it can be slightly tougher to navigate an industry as a limited company. Especially with the challenges that start-ups and small businesses typically face in the UK, it's important to get all the aid you can.
Hence, accounting services play a significant role. With the help of professional accountants, the management team can make the company run without worrying about different financial aspects. Here are a few examples:
The legal procedures of setting up a limited company are usually handled by professionals. This includes the initial process of registering the company under the HMRC and compliance with legal requirements. In turn, the management team can spend more resources and have more focus on running the company without being pressed for time.
The managers are typically not trained to deal with payroll, so the help of accounting professionals counts. Keep track of the different payroll processes and make sure that the company is operating in accordance with its policies. Accountants can also help the management team reduce their workload and prevent any mistakes from being made.
With a limited company, there are a lot of bookkeeping requirements that have to be fulfilled. This duties includes the tracking of expenses, bills, payments, and more. As part of the standard operations of the company, it's important for the management team to keep track of the financial activities.
4) Risk Management
Accountants can provide professional opinions on the relevant risks that a company is facing. This can include everything from the business’s debt to the impact of new legislation on the company policy. Through risk management, a limited company can protect its assets and be more effective.
5) VAT Obligations
One of the biggest changes that business owners have to make is adapting to changes in the VAT system in the UK. Accountants can make the transition smoother for the management team by explaining the details and how they can impact their company. It does help to have a professional who can point the way and help them understand this new change.
6) Corporation Tax
Limited companies are no exception to paying corporation tax. A considerable amount should be set aside for the year. To calculate this, accountants can help with the valuable input of the company’s income and expenses. Plus, it's quite tricky to keep track of all the expenses as is, so professional help is recommended.
7) Financial Reporting
Accountants play a crucial role in compiling the financial statements every fiscal year, along with the necessary records of the company to comply with policies and conduct the required tasks for the business. The financial reporting of professional accounting services of a limited company can also help with budgeting and planning for the future.
If you are contemplating the idea of setting up your own limited company, then turning to an accountant can be a huge help. There are plenty of things that you have to deal with as it is, but keeping the finances in order makes running the company easier.
In need of accountancy services for a limited company? 1 to 1 Accountants is an accountancy firm in the UK that aids small businesses, limited companies, partnerships, freelancers and more. Contact us today!