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It is widely accepted that hiring a contractor accountant can be beneficial for the management of limited company accounts.

Contractor accountants can assist with various aspects of limited company accountancy, such as maintaining accurate business records, annual business reviews, personal tax returns, VAT returns and business insurance.

Of course, the accounting services required are complex and bespoke to each company. For this reason, it is common for accountancy firms to offer personalised packages, including variable services to attempt to address the needs of different small businesses. As expected, the costs of these tailored packages vary depending on the services that are included. Therefore, it is often worthwhile reviewing the specific needs of your business and selecting the appropriate accountancy package to suit.

Accountancy services

Understandably, it can be a daunting task to recognise the services you would prefer the accountancy package to include. To attempt to assist with this below is a consolidated list of the different core services specialist accountants can provide:

  • Dedicated account management, including implementation of online accountancy systems to maintain accurate business records
  • Generating annual accounts to the legal standard for reporting on an accruals basis
  • Management of personal tax returns, tax planning and VAT management
  • Calculation of dividends, corporation tax and payroll activities
  • Dealing with Companies House and HM Revenue and Customs
  • Unlimited accountancy support and advice, with the ability to consult with other in-house professionals or partner firms regarding business insurance or mortgages

To note, the major accounting fees for Limited Companies are year-end accounts and corporation tax. Accounts are subject to legal review and need to be registered at Companies House and HMRC. Due to the legal requirements surrounding the preparation of year-end accounts, it is highly advised that the services of a specialist accountant are sourced to prepare and submit the accounts on an accruals basis. Furthermore, a dedicated accountant can facilitate the registration of other legal requirements, such as PAYE.

Beyond these core services, contractor accountants can also provide further support with forming your limited company, inclusive business insurance, registration as the business address, appointment to a dedicated accountant, extra tax planning services or prioritise completing your annual accounts above other clients.

Almost all specialist contractor accountants provide core services covered by monthly fees. However, additional support beyond these fundamental tasks often rely on an additional cost. A further consideration is that the cost of the hired accountant may depend on the quality of the existing business records.

How to choose an accountancy firm

To summarise, when selecting the most appropriate accountancy firm and services for your limited company, it is important to consider multiple aspects. Crucially, it is imperative to assess the core services required from the contractor accountant for your business and use this to select the appropriate accountancy package to suit your specific requirements. It is also vital to be realistic regarding the current status of the business accounts and how much the contractor accountant will need to update.

The vast majority of limited companies rely on accountants to support their finances. The monthly fees associated with specialist accountancy services are deemed necessary to ensure that company business accounts are updated and meet legal standard. Not only does this save the owner of the limited company time, but it also brings confidence that the business accounts are prepared accurately and on time. A professional accountant will have superior knowledge regarding tax planning, legal submissions and more complex topics within the marketing sector, such as IR35. Overall, selecting the correct accountancy package can provide expert support and could prove to be instrumental in the financial success of your business.

Get in touch with Gorilla Accounting to find out more by calling 0330 024 0406 or