Managing accounts and taxes is often an unpleasant responsibility for company directors. It can be burdensome, aggravating, and consume time that could be better used to grow their business. While around 61% of businesses in the UK rely on accountants to help them, it’s worth considering whether your limited company actually requires their services.

Although it is not mandatory for limited companies to hire an accountant, there are numerous advantages in doing so. One of the benefits is that they can assist in preparing your annual accounts and company tax return. Additionally, they can handle tax registration for newly established companies.

If you’re uncertain about whether your small business requires an accountant, continue reading to learn how MyTaxDoc can alleviate you of the burdensome task of number crunching and form filling, freeing up valuable time for you to focus on managing the business you’re passionate about.

What can an accountant do for my limited company?

Engaging the services of a professional to handle your company’s accounts can be akin to freeing a genie from a bottle, granting you more time in the day. What’s more, there are a plethora of services available that can further streamline your business operations beyond just basic accounting.

Setting up a new company

Your accountant has the capability to register your business with Companies House if you desire, taking away some of the burden during the initial stages of your new venture. Furthermore, they can offer guidance regarding your new tax responsibility and communicate with HMRC on your behalf to register you for payroll, VAT, and Corporation Tax if you have employees.

Payroll

For small businesses, outsourcing payroll management to an accountant can be advantageous as it saves time and avoids the complexities of income tax calculations and HMRC paperwork. Large companies generally handle payroll in-house, but smaller businesses can benefit from the expertise of payroll specialists who enjoy handling such tasks.

The accountant will handle the essential details and ensure that your company adheres to the required regulations and laws, freeing up your time to focus on more interesting tasks. Additionally, outsourcing can be cost-effective as it eliminates the need for expensive payroll software and training.

VAT

If you find VAT a daunting prospect, you’re not alone. VAT rules are frequently modified, making them perplexing. An accountant can assist you in navigating your company’s VAT obligations and selecting the most appropriate payment plan, ensuring that you don’t overpay. They can also assist you in completing your quarterly VAT returns and ensuring that you do not face any unexpected penalties.

Bookkeeping

Bookkeeping is another time-consuming, dull, yet essential task for limited companies. Logging every receipt and invoice can feel like a drudge, but come year end (or if HMRC come knocking), nobody wants to be hunting for missing paperwork. Fortunately, accountants are meticulous beings and can handle your bookkeeping with the utmost efficiency, further freeing up your time and headspace.

Annual accounts

As a limited company, it is your duty to submit your annual accounts to HMRC and Companies House every year. Neglecting to do so may result in substantial penalties, and in some instances, businesses may be removed from the registry and face legal consequences.

Your accountant will ensure that this does not occur. They will collect and create the required documentation and ensure that it is submitted punctually, if not beforehand. Depending on the scale of your company, this may involve a balance sheet, profit/loss account, a statement from the company director (i.e., yourself), and any other relevant notes.

Tax returns

Your limited company must also submit a tax return to HMRC at the end of each financial year, in addition to filing your annual accounts. Even if you made a loss or are not required to pay tax, you are still required to submit a tax return. The tax return should include a profit/loss account, but with a different version from the one in your annual accounts. It should display your adjusted profits, which are calculated by subtracting expenses and investments from gross profit. Although the paperwork can be intimidating, your accountant can prepare it for you and calculate your Corporation Tax liability. They can also send timely reminders about payment deadlines.

Pros of hiring an accountant 

If you are considering whether to hire an accountant for your limited company, it’s important to consider both the time and monetary savings you’ll gain. By outsourcing tasks such as paperwork and calculations, you’ll be able to focus on other aspects of your business. Additionally, you’ll have peace of mind knowing that your finances are in capable hands and that you’re complying with all necessary regulations.

It’s also important to factor in the potential cost savings from tax efficiencies and avoiding fines. Hiring an accountant can also eliminate the need to purchase expensive accounting software and provide training. In short, the benefits of having a reliable accountant far outweigh any drawbacks.

Why choose MyTaxDoc as my limited company accountant?

If you are seeking a way to improve your business’s chances of success, consider hiring an experienced accountant who can help you manage your finances and give you more time to focus on growing your business.

At MyTaxDoc, our team has extensive certifications and experience in providing accounting services to small businesses. We pride ourselves on providing friendly and professional customer service and simplifying complex financial concepts to make them easily understandable to our clients. Our team is dedicated to ensuring your company is in compliance with financial regulations while finding ways to maximize your tax savings and improve your overall financial efficiency.

Despite common misconceptions, professional accounting services can be affordable and cost-effective for small businesses. Contact us today for a free consultation to see how MyTaxDoc can help your limited company.