Do I need an accountant for my limited company? Key factors to consider

May 8, 2024

“Do I need an accountant for my limited company?”. It’s a question most business owners have asked themselves. After all, the fees associated can be rather high, and you might think you can do the accounting and financial management yourself.

However, there are things you need to know and consider before you make a decision. In this article, we’ll delve into these factors to help you make the right decision for your business.

Navigating tax legislation

One of the main reasons for hiring an accountant is for assistance with your business taxes, from VAT to income or corporation tax, all of which tend to be complex and always subject to change. With Making Tax Digital, the way you do your taxes will also change in the near future.

Keeping up with changes like these and your actual tax work can be a daunting task, especially for business owners without a background in finance or accounting or those with a particularly busy schedule.

An experienced accountant can help you by taking on a lot of the work for you, giving you some peace of mind knowing that your taxes are being properly handled. They won’t stop there, though. Instead, they’ll help you create a tax strategy that minimises your liabilities and helps you achieve your financial goals.

Financial reporting and compliance

Limited companies are required to maintain financial records and send annual accounts to Companies House and HMRC, which summarise your financial position for the last year. Failure to complete these (to a high standard) may result in penalties or fines, so it’s essential to stay on top of your accounting.

However, sole traders and partnerships could also benefit from annual accounts, even though they’re not legally required to file them. After all, these documents summarise your financial performance, allowing you to strategically plan for the future.

Getting an accountant to help you will ensure all your figures are correct and not misleading in any way, ensuring you remain compliant and are working with proper numbers. Their involvement will also reassure investors and other stakeholders that your company is complying with all relevant accounting standards and statutory requirements.

And, again, they can ensure the timely submission of annual accounts, reducing the risk of non-compliance and associated penalties.

Strategic financial management

Beyond compliance work, an accountant can play a pivotal role in strategic financial management. They can do that in a number of ways, using tactics and tools to provide insights into your performance, cashflow, profitability and more. That’ll help you make informed decisions that drive sustainable business growth.

There’s more though: identifying cost-saving opportunities, optimising revenue and securing financing. Whatever you need help with, we’re sure an accountant will be able to help.

Professional advice and support

Running a limited company involves constantly making financial decisions, ranging from day-to-day transactions to long-term investment strategies. In such a complex landscape, having access to professional advice and support can be invaluable.

An accountant can serve as your trusted advisor, offering guidance on a wide range of financial matters. Their expertise extends beyond mere number-crunching; they can provide strategic recommendations tailored to your company’s unique circumstances and objectives.

If you work in a specific industry, it would be worth searching for an accountant who specialises in your sector. Their advice will be specific and tailored to your business, helping you go further than ever before.

Have you asked the question, ‘do I need an accountant for my limited company?’ We might just be the team for you: principled, experienced and ready for the next challenge. Get in touch with us and tell us about your company.

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