No one loves the tedious task of tracking taxes and accounts. It is one such job that can easily take up much of your valuable time. If you run a limited company, then you must be wondering if you need an accountant. Let’s dive a little deeper and uncover the details of the same.
By law, limited companies are not required to appoint an accountant. The decision is entirely based on the founders of the organization. However, we highly recommend that no matter if it’s a corporate entity or a limited company, an accountant is a must.
How Does an Accountant Work For A Limited Company?
Hiring an accountant will save the organization time and energy. Professional accountants use their expertise and education to leverage skills. The first task of an accountant is to register the limited company.
In addition, they are responsible for arranging the proper documents in the time frame. Also, when the limited company is new, the accountant may help with setting it up. There are several other responsibilities that an accountant performs. For example, they help with streamlining the process and perform other financial duties.
Besides, tax calculations, payroll, tax filing, and bookkeeping among other tasks are handled by accountants. Moreover, accountants with the right certification can even protect the shareholders. They do this by certifying the financial records.
Benefits of Hiring an Accountant For a Limited Company
Have you been handling the accounts department of your company? Then we bet you must be wishing for some extra hours per day, isn’t it? Hiring an accountant can relieve you from a stressful job. Besides, it will allow you to focus on other aspects of the business. Let’s talk about how an accountant can change your organization for the better.
- Initial Help With Setting The Company
If you wish, the accountant can help you register the business. It is quite a hassle that the accountant can easily get done. Thus, it will take off your stress from the task with the initial struggle of setting up the company. They can also help you with liaise and tax liability.
- VAT
Mentioning this three-letter word may sound disastrous to some. If you freak out with the word VAT, then you need an accountant now. With the regulations changing regularly, it can be a deadly task to be responsible for. Hiring an accountant will help you navigate through the organization’s VAT obligations. Furthermore, they will also advise you to choose the best payment method. This way you don’t have to overpay.
- Annual Accounts
With limited companies, it is mandatory to file annual accounts. Lack of payment can lead to heavy fines or penalties. There have been cases where companies have faced legal action. In addition, they were even eliminated from the register. Having an accountant ensures you don’t have to go through this. They will ensure all the necessary paperwork is done on time.
- Bookkeeping
We know how time-consuming bookkeeping is. And that’s a task that is best handled by dedicated people. Bookkeeping forms an important part of accounting duties. This task is dutifully managed by accountants who manage every record accurately. Thus, it relieves your stress and allows you to focus on other tasks.
Final Words
For a small limited company, managing accounting is a constant minefield. However, with the help of accountants, half the battle is won. A professional accountant with the right certifications will give you the right advice on how to move your business ahead. Their experience, education and expertise are what you can gain value from.
Accountants are helpful in all kinds of industries no matter the company. From big to small companies, each one needs to hire an accountant to take care of its financial records. Working with an accountant by your side relieves half of your stress. You won’t have to ever worry about tax deadlines, incurring fines, hefty paper trails, or penalties.
As discussed above, it is not a necessity for a limited company to retain an accountant. But, it is recommended that such tasks are handled by professional accountants. So, here we come to the end of this article. We hope that you liked the read. If you did, please consider sharing the write-up and spreading the word.
For more information, please contact us on 02921 056209 alternatively email admin@e-accounts.co.uk
https://www.e-accounts.co.uk/2022/08/09/do-limited-companies-need-an-accountant/
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