When to Hire an Accountant for your Limited Company

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When running your own business, it can be hard to know when to reach out and add extra help to your team, whether that’s employees or just external service providers. With the wealth of accounting software today, it can be just as hard to know when to hire an accountant to help you manage your own accounts.

At some point though, every small business needs an online accountant. Even if you do everything yourself, dealing with things like corporation tax time is no fun for anyone not getting a refund.

Accountants can help you to establish the legal structure of your business, provide experienced advice about financial areas like cash flow and tax planning, as well as keep on top of day to day bookkeeping like company accounts, invoices and expenses. But as a business owner, when exactly should you hire a limited company accountant?

If you are a new, or growing limited company.

 

For limited companies, setting up a corporate structure is essential. The correct legal structure ensures the business can navigate legal obligations such as paying company directors and avoiding tax issues to ensure it remains tax efficient. Before your limited company begins trading, it’s a good idea to consult an accountant to assist with establishing the right legal structure.

This legal structure also ensures that the business is recognised as a separate legal entity from company directors, which protects personal assets in case the company gets into financial difficulties.

For assistance with accounts and tax returns.

 

Arranging annual accounts and filing associated tax returns like a self assessment tax return, a company VAT return and a corporation tax return can altogether be complex processes, and are best handled by professional accountants with years of experience.

HMRC and Companies House have a multitude of compliance requirements, which means it’s important to both pay tax correctly, and file tax associated paperwork correctly. No limited company wants a potential HMRC audit because they’ve accidentally misread a legal requirement.

But when you hire an accountant, this worry is mitigated. Limited company chartered accountants can provide tax planning advice as well as correctly filing tax returns like self assessment tax returns and a corporation tax return on behalf of a company director, plus calculate how and where to save money with tax savings.

Find out what accounts your accountant can help you with.

For forecasting cash flow.

 

Surprisingly, cash flow is often cited as one of the most common reasons for a limited company to fail within their first twelve months. A majority of the time in these cases, accountants have not been employed or consulted and there is no 12-month forecast of the company accounts – which is responsible for identifying any shortcomings or financial issues to be handled in advance.

Accountants can assist with this by undertaking the forecasting, as well as identifying whether the business would ever need to take out a loan or raise equity finance. Additionally, these plans can help small businesses set achievable financial goals and targets for the future, helping to save money and set up for success.

In case of a tax investigation.

 

No new business owner wants to risk being financially investigated by HMRC for incorrectly filed documents. Audits can be costly, time-consuming, and stressful, especially when done alone.

However, some of the worry is relieved when you hire an accountant. Accountants will help a limited company navigate each step of the inquiry process while also protecting your company from breaking tax laws in the future. They’ll almost certainly have created an audit trail, making the procedure easier for both your business and the tax office by allowing them to see which transactions happened over time, as well as who authorised them.

View the business tax services we can help you with.

When your business experiences significant growth.

 

Companies often grow unexpectedly. From sole traders needing to transition into full blown limited companies, or an existing limited company that’s taken on a new client or project, small business owners and longstanding company directors all sometimes struggle when growing their limited company quicker than they first anticipated.

When a limited company flourishes, an accountant can take care of any growth transitions, like hiring employees or purchasing more office space. They can focus on things like payroll, employee tax and national insurance obligations, bookkeeping tasks like property tax or rent and utility payments, whilst also using accounting software to analyse cash flow, oversee business accounts, and assess stock management and pricing.

Plus, when you hire an accountant you’re not only hiring their financial professional services, but also  their invaluable advice. Specialist chartered accountants can help with more than just numbers, they can also provide essential advice for business planning. They can give financial projections, tally bank statements with a business plan, and assist with completing the statutory accounts.

Their invaluable insight from this financial analysis can help small businesses to turn into behemoths by forecasting things like when the best time would be to introduce a new product or service to your business.

Do you need limited company chartered accountants?

 

If you’re considering hiring an accountant for help, it’s likely that you already know how an accountant will aid the next stage of your business’s development. The right accountant can make life easier by unburdening you of any complicated or financial stresses, which leaves you free to focus on the day to day.

As a last tip: An accountant partnered with cloud-based accounting software is also another invaluable tool, as you’ll not only be able to keep abreast of what your accountant does, but you’ll always be able to see your company’s financial situation at an easy, digestible glance, too.

Need an accountant?

 

We can help. At Raw we’re dedicated limited company accountants who can assist with the day to day financial affairs of your business. We come with a fixed monthly fee too, so there are no surprises. Why not view our range of services, or have a quick, free, no obligation consultation call with us?

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