A good accountant can not only save your company money, but will also provide reassurance that your financial affairs are being looked after, tax deadlines are being met, and potential problems are spotted in advance. So, if you’re starting up a new business, what should you look out for when choosing a limited company accountant?
Limited Company Accountants
The most important professional person you’re likely to deal with as a company director is your accountant. How to deal with accountants, and preparing accounts.
- Accountant Tasks – what can an accountancy firm to do for your business?
- Choosing an Accountant – checklist to help you choose the right firm.
- Annual Accounts – what they are, and when/how to submit them.
- Bookkeeping – the ongoing tasks your company needs to complete.
- Profit & Loss vs. Balance Sheet – the two key accounting documents.
- Invoicing – what you must include on your company invoices.
- Company Records – which information you must keep, by law.
Sending out invoices for the goods or services you provide is a key task for limited company owners. If your invoices lack certain details, this could cause a delay in receiving payment, possibly resulting in cash-flow problems.
Record keeping is vital for every incorporated business. If you do not keep the right records for the correct length of time, HMRC can fine your company £3,000 or disqualify its directors for up to 15 years. Even if these penalties only apply in extreme cases, they illustrate the importance of the task.
If you’re running a limited company, your company accounts will contain a balance sheet and profit and loss statement. They form part of your statutory annual accounts. But what exactly do these terms mean, and when are you likely to need to use these documents?
If you are a new business owner, bookkeeping in some form is going to be essential to organising your finances, allowing you to keep up-to-date records of both your income and your outgoings.
Choosing an accountant to help you manage your business’ financial affairs is one of the most important decisions you’ll make. The person you eventually go for will not only be privy to a large pool of information about your business’ performance and future viability, but he or she will also be the one you trust
Every year in the UK, all registered companies must prepare annual accounts and file them with Companies House and HMRC. Businesses must accurately report on their financial activity during the tax year just gone.