Whether you’re a contractor, freelancer, locum or anything in between, running a successful limited company is about more than consistently delivering the highest level of service to your clients.
The financial management of your business underpins its success. This includes accurate record-keeping, tax compliance and optimisation, monitoring of KPIs and strategic planning. Working with a limited company accountant plays a key role in this success.
A limited company accountant can play a huge role in the successful financial management of your business, providing the foundation for long-term financial health and laying strong foundations for your business to grow.
In this post we’ll break down some of the ways that a limited company accountant can help your business be successful.
Startup and Operating Structure
In the startup phase of your business, an accountant can advise on the best company structure for you as well as expertly handling your company registration and incorporation obligations.
Choosing the Right Operating Structure
The majority of contractors will operate through their own limited company, but everyone’s circumstances and business goals are unique, and this will determine the best operating structure for you. There are various implications in respect of the business structure that you choose, including financial risk, the scope to leverage tax efficiencies and your accounting and reporting obligations.
An accountant will be able to advise on which business structure is the best fit for you to help your business get off on the right foot and have a better chance of long-term success.
Incorporating your Limited Company
If, like many small business owners, you decide to incorporate your business, an accountant can handle the incorporation process for you from start to finish. This will include registration of your company with Companies House, a certificate of incorporation, share certificates, memorandum and articles of association and VAT and VAT flat rate scheme registration if applicable. In many cases your limited company can be set up in a day.
Effective Financial Management
Ensuring the effective financial management of your business is one of the main functions of a limited company accountant, and there are various ways they will help.
Thorough Financial Analysis
An accountant will monitor and analyse the financial data for your business including cash flow, KPI’s and statements. They will identify patterns, trends and potential issues and keep you informed ensuring the financial health of your business is always in hand.
Cash Flow Management
A limited company accountant will monitor monies coming in and going out of your business and identify possible problems and shortfalls. A consistent cash flow is essential for business success so that you have sufficient working capital to run your business, meet your financial obligations and achieve profitability.
Annual Accounts Preparation
A limited company accounting will prepare and submit your annual accounts to Companies House. This includes a profit and loss statement, balance sheet, directors report and any supporting notes regarding the accounts to ensure that you remain compliant with your statutory reporting obligations.
Tax Compliance, Planning and Optimisation
Dealing with your tax obligations can be a daunting and confusing prospect for limited company owners, but this is an accountant’s bread and butter and they can make taxes easy for you.
Ensuring You Are Compliant
Tax regulations and legislation are ever-changing and it’s not always easy to keep up or understand the changes. This means that staying compliant is an ongoing challenge. By engaging an accountant to handle your tax affairs, you get peace of mind that you’ll meet your tax obligations and reduce the chances of any HMRC investigations, fines or penalties heading your way.
Minimise Your Tax Liability
When you operate through a limited company, there’s significant scope to leverage tax efficiencies while remaining compliant, and an accountant will be able to help you structure your remuneration through a combination of salary and dividends to take full advantage which can result in more take home pay.
They will also be able to identify all allowable expenses, as well as any other tax credits or deductions, to reduce your taxable profit and help you retain more of your earnings.
VAT Management
If your businesses’ taxable turnover is more than £85,000 you’ll need to register for VAT, charge VAT to your clients and complete a quarterly VAT return. A limited company accountant can offer support to ensure accurate VAT calculations, timely filing, and reporting to HMRC. They can also assist with Payments on Account and the VAT Flat Rate scheme.
Limited Company Accounting With Gorilla
We are expert accountants for limited companies and for a great value fixed monthly fee of £110 + VAT, all your business and personal accounting needs will be expertly handled by your own dedicated accountant.
We provide unlimited support and advice, including on how to optimise your tax-efficiency, at no extra cost no matter how many times you contact us. Thanks to our Client Service Guarantee you don’t have to worry about slow turnaround times for your queries. We’ll respond the same working day to any query submitted before 3pm or we’ll issue you with a £50 payment.
You also receive FreeAgent cloud accounting software included in our service. Multi award-winning FreeAgent is the industry standard when it comes to accounting software and has a host of benefits that can be transformative for your business.
If you have any queries about our limited company accounting service, please call 0330 024 0406 to speak to an accountant or request a call back today.
