Table of Contents
Are you ready to handle a limited company’s accounting? Most people’s first reaction would be a simple “Absolutely not!” It is not worth considering to deal with receipts, documents, calculations, and taxes. However, you are free to handle your limited company’s finances without any legal limitations.
You should do your personal accounting if you have any past bookkeeping or accounting experience and you have confidence in handling the finances of your business. However, you should hire a CPA in Huntsville, AL, if you are unsure.
Why should you hire a CPA to handle accounting for a limited company?
Accounting for limited companies can be complex. All business income, expenses, assets, and liabilities must be appropriately documented, completely stated, and traceable at all times if you are managing a company.
You must maintain all business papers for at least six years following the conclusion of the financial year to which they relate, and your yearly accounts must be “true and fair.” This must be part of your accounting records, which should also include data about:
- All funds received and utilized by the company
- All of the company’s assets
- Any responsibilities owed or owed by the company
- Stock owned by the corporation at the end of its fiscal year
- The stock inventory is calculated using the stock takings.
- All products that the business purchases and sells
- With the exception of the retail trade, who bought and sold these goods?
Some strong reasons for hiring an accountant for your business
1. The prices are reasonable.
Hiring an expert accountant to handle your finances is like opening a genie’s lamp if you have ever wished for extra time in the day. What is the best part? More than three desires are possible. For your limited company, accountants can offer several beneficial services.
2. Start your new limited company:
In order to save time and effort in the beginning, your accountant may file your business with Companies House. They will also get in touch with HMRC regarding your tax registration and let you know about your new tax obligations.
3. Payroll management
Smaller businesses might wonder about hiring an accountant to handle payroll, even though bigger companies often handle it internally. As an alternative, you can bid goodbye to the hours you spend every month on HMRC paperwork and income tax calculations. Thankfully, skilled accountants often have payroll specialists who can complete this work efficiently.
4. Submit your VAT returns.
You are not the only one who is scared of the three letters VAT (Value-Added Tax). The regulations around VAT are constantly shifting and quite complicated. You can avoid paying too much by choosing the optimal payment plan and managing your company’s VAT requirements with the help of an accountant. Additionally, they will finish your quarterly VAT returns promptly and guarantee that you do not pay any unexpected penalties.
5. Avoid wasting time on bookkeeping.
Regular bookkeeping is necessary for effective financial management. To be honest, it is tedious, recurrent, and time-consuming. It may be tiresome to log every invoice and receipt, but nobody wants to spend the year looking for missing invoices or transactions (or when HMRC shows up). Thankfully, accountants are diligent individuals who can effectively handle your bookkeeping, saving you time and effort.
6. Provide cloud accounting programs like Xero.
Accountants often speak about accounting software such as Xero since it literally saves lives. It may affect the way you manage your accounts by making you more effective and less vulnerable to errors. You can always be sure that you are seeing the most recent information because everything is taking place on the cloud, which could significantly enhance cash flow. In the end, it will be necessary to submit company tax returns and simplify year-end accounting.
7. Fill out your annual accounts.
Limited companies have to submit annual accounts to Corporations House and HMRC each year. Severe penalties and legal action could follow failure to comply. If you repeatedly violate the law, your organization may be prohibited from conducting business.
