Is an accountant required for a limited liability company?

While using an accountant is not required by law for limited firms, there are several advantages to doing so, such as completing your annual accounts and company tax return. They can also help with tax registration for new businesses.

If you're not sure if you need an accountant for your small business, keep reading to learn how Accounting Firms in UK can relieve you of hours of number crunching and form-filling so you can focus on what you do best: operating your business.

What services can an accountant provide for my limited liability company?

Hiring a professional to manage your company accounts is like letting a genie out of a bottle if you've ever desired for more hours in the day. Even better, there's room for more than three wishes, thanks to a variety of services available to make your life easier.

Creating a new business

If you like, your accountant can register your company with Companies House, which will reduce your workload in the early days of your new company. If you are an employer, they may also advise you on your new tax liability and work with HMRC to VAT register, Corporation Tax, and payroll.

Payroll

Payroll is typically conducted in-house by major corporations, but for smaller firms, it is beneficial to outsource it to your accountant. You may also say goodbye to hours of your life each month spent drowning in income tax calculations and HMRC paperwork. Fortunately, there are payroll experts who adore doing just that (each to their own).

VAT

VAT — you are not alone if these three letters give you the creeps. VAT is notoriously difficult to understand, and the rules are always changing. Your accountant will assist you in navigating your company's VAT responsibilities and selecting the appropriate payment arrangement so that you do not overpay. They can also make quick work of your quarterly VAT returns, ensuring that you don't get hit with any unpleasant surprises.

Bookkeeping

Bookkeeping is another time-consuming, tedious, but necessary activity for small businesses. It may seem tedious to keep track of every receipt and invoice, but no one wants to be searching for missing papers at the end of the year (or if HMRC comes knocking). Accountants, on the other hand, are diligent people who can manage your bookkeeping with the highest efficiency, freeing up even more time and mental space for you.

Accounts for the year

As a limited company, you are required to file annual accounts with HMRC and Companies House every year. Failure to comply may result in severe fines, and in some situations, companies may be removed from the register and face legal action.

This will not be tolerated by your accountant. They will compile and generate the required documents and ensure that it is filed on time (if not before). A balance sheet, profit/loss account, a report from the company director (that's you), and any other pertinent notes will be included, depending on the size of your organisation.

Returns on taxation

Along with completing your annual accounts, Hmrcwill send your limited business a notification to file a tax return at the end of each financial year. The aim of this is to disclose your taxable profit; however, even if you make a loss or are below the tax threshold, you must still submit it.

Accounting Firms offer services such as Accountants registration and assistance in locating qualified accountants all in one location.