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limited company, accountants for limited company

How to find the best limited company accountant

 If you’ve just set up a Limited company or you’ve been managing your finances by yourself up to the present, Hiring an accountant might be the most beneficial thing you can do in the beginning of managing your company.
Company’s tax and accounting operations can be time-consuming and stressful, unless you’ve got prior experience. It may also drain your time from the management of your business.

Why do you need an accountant?

The majority of companies with limited company employ professional accountants who assist with the initial setup process and to manage the company’s accounting and tax issues.

In the last 10 years there have been a number of dedicated small-sized accounting firms established – helped surely by the rapid advancements in accounting software that are web-based that make life simpler for accountants as well as clients themselves. 

Here are a few of the principal tasks 92career you can expect accounting firms to perform on a regular basis within their regular monthly or annual cost.

What will the of your accountants for limited company do?

  • Establishing the company you want to run through Companies House (assuming you haven’t done it yet).
  • Complete the tax registration forms that you initially fill out for your business, which include Corporate Tax and Value Added Tax and registration of your business as an employer (so you can set up payroll for your director and the employees).
  • The process of setting up and operating an effective Payroll system to pay your employees.
  • Making the company’s quarterly VAT tax returns.
  • Bookkeeping (this could or might include it).
  • Complete HMRC Forms related to payroll (such as the P60 at the end of the year).
  • Completion of all of your Yearly Accounts.
  • Fill out your company tax return.
  • Completion of the individual tax returns(for an additional charge).
  • Offer mortgage or Tenancy references (possibly charged).
  • Handling HMRC correspondence on a regular basis.
  • Inputting an annual Consent Statement every year (possible fee).
  • The process of opening a bank account for your company that is limited on behalf of your business.
  • Conducting or conducting or reviewing contracts under IR35 when you offer professionals (for an additional charge).

While your accountant will be in charge of your company’s accounting and tax requirements, their reports will only be more accurate than the data you supply them with.

What do you have to do for your accountant?

  • Keep your accountant informed of any changes to your personnel of the company, their salary levels and so on.
  • It is important to keep documents of your expenses and income every month (via third-party software or other). This is an important job, and should not take time, particularly if you commit a few hours to your accounts every month.
  • You must contact your accountant when they request the bank statement or other information. Also, you can check your draft of VAT or Corporation Tax, or personal tax returns, as well as other forms of paperwork.
  • You, as director, are the sole accountable in the completeness, accuracy and timely filing of the tax returns. Not your accountant.

What is the cost of a limited company accountant charge?

The costs will vary from one firm to the next according to the level of experience they can offer you as well as the volume of work you’re expecting them to complete.

If your business’s operations are simple (for instance, if you’ve set up the business up as an independent contractor) you’ll be able to pick from a variety of accountants who specialise in. They can cost between £70 and 180£  each month for basic support.

The more “add-ons’ you need (such as insurance coverage that is inclusive and bookkeeping, etc. ) the more you will be charged.

Here are a few specialist accountants from small businesses that we’ve worked with over the last 10 years.

AccountantMonthly CostNotes
Aardvark Accounting£76Full service, which includes Free-Agent software Payroll, IR35 advice.
Clever Accounts£99.50The package for sole traders begins at £37.50 for a month.
SGA Accounting£109Full package, specialist contractors. Half price offers currently in place.
Vantage Accounting£79Price is based on up to £85k turnover. Small business specialists. Half price offer is available.

How do you choose an accountant?

We’ve been providing advice to small businesses for over 20 years. From our experiences, one of the most effective methods to select an accountant is through the recommendations of people whom you know and trust.

Do not only look at the price. It’s more about service since there’s nothing more embarrassing than a shady accountant.

Before you sign for a membership, check whether you’ll be assigned an assigned point for contact. Certain companies have a sort of conveyor belt system that means you won’t be aware of whom to call for any questions.

A reliable accountant can not only save your business money, but ensure that your financial matters are in order and that tax deadlines are observed, and potential issues are identified in advance. If you’re setting out to set up your own business What should you be looking for when selecting the accountant of a limited company?

Costs

Although price shouldn’t be the primary factor to take into consideration, surely any business owner doesn’t want to pay more than what is needed for professional services. There are a variety of ways that accountants bill their clients:

  • Annual fee that covers the most fundamental accounting duties that include making annual accounts and processing your payroll as well as VAT reconciliation, dealing with the official documentation, etc.
  • Monthly fees – the majority of contractor accountants charge an accounting complete service according to this model, in an extremely competitive market.
  • Time-based basis – you might choose to charge your accountant on the time they’ve spent with your accounts. Additional services that are added in addition to monthly or annual costs will typically be charged.

Be sure to compare similar services when selecting an accountant. This is more straightforward for contractor-type services; however, for general accounting services, you should ask three or four companies to offer a quotation.

Profile of the Firm

Do you wish to employ an individual, local company or do you prefer a bigger and perhaps more personal service? What’s the length of time since the accountant has been in operation and what additional services are they offering?

Specialists?

Do they specialise in specific kinds of clients like engineers, contractors or dentists? In some professions that require specialised knowledge, it makes lots of sense to employ specialists, as they’ll be aware of tax laws or regulations that could affect the industry you work in. If you offer services to individuals (i.e. as an IT consultant, contractor or interim. ) as an IT contractor, consultant, interim, etc.) the most significant danger to your business is the Intermediaries legislation (IR35), so it is essential to only work with an organisation that has experience handling this particular tax code.

Modern or “Old School’

What type of service does your accountant offer? Small businesses are the most likely to appreciate the efficiency advantages of cutting-edge technology instead of having to put up with the clumsy traditional techniques of communications.

There are a variety of great online accounting software including Xero as well as FreeAgent which are able to connect the accountant and the client greatly simplifying the accounting process and keeping both parties up-to-date on invoices, tax deadlines and other payments. It is also possible to reconcile your bank accounts with your online accounting platform and then submit taxes to HMRC.

If your prospective accountant doesn’t have an advanced bespoke software, they should have a working knowledge of the third-party software. You will find your lives significantly reduced because of it.

Qualifications

Are you able to trust your accountant who is certified by an organisation that is professional, like the ICAEW or ACCA? While day-to-day accounting tasks may be handled by staff who are not qualified (this is not uncommon) it is recommended that you seek tax planning guidance to be offered by a trained person.

Recommendations

A number of the top small-business accounting firms we collaborate with at LCH have taken on more than 50% of new clients through word of mouth recommendations. If you know any trustworthy acquaintances or colleagues that have experienced a positive experience with accountants their experiences could be valuable. However, based on our experience it’s hard to rely on ratings or popularity indicators on the internet to judge how good the company is, as these metrics are so easy to alter. This is why recommendations by real individuals are vital.

At Account Ease we understand the sensitivity of your business. We have a team of expert accountants and professionals which assist you in your financial management process. Call us at 0208 133 4599 or visit our website as we provide the best accountancy services in the town.

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