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Limited Company Accountants – Is an Accountant Necessary for a Limited Company?

Limited Company Accountants – Is an Accountant Necessary for a Limited Company?

Hiring a professional accountant for your limited company can provide numerous advantages beyond just saving time. Limited Company Accountants offer a range of valuable services that can benefit your business.

An accountancy firm specializing in contractors, freelancers, and small businesses can ensure accurate record-keeping, keep company accounts, handle bookkeeping tasks, and prepare financial statements. Additionally, accountants can provide expert advice on tax planning strategies, help optimize your business’s financial performance, and assist with compliance issues.

Specialist Limited Company Accountants also offer guidance expert financial advice on business growth strategies, budgeting, and forecasting. With their expertise, dedicated limited company accountants become a valuable asset, allowing you to focus on other critical aspects of your company’s operations.

Except in the situation when the director or CEO of a company is previous accountant or was an accountant at some point, it’s not easy to find a CEO who is fond of the accounting stuff. But they cannot also ignore the fact that accounting is integral to a company’s growth.

However, for business owners and CEOs, spending precious and valuable time on making balance sheets and filing returns can be counterproductive.

This is one of the reasons they hire an accountant to take care of financial statements preparation, analysis and accounting tasks. Taking help from an accountant with finances also gives them time and freedom to work on their business growth.

However, the question remains, is an accountant necessary for a small business, a limited company, an LLC, a limited company directors etc? In this article, we will help you figure out the answer.

Am I Legally Obligated to Hire an Accountant?

There is no legal obligation or requirement for a limited company to hire an accountant. Yes, there are requirements to submit the limited company accounts it’s financials and complete the taxation formalities, for which having an accountant by your side will be beneficial. An accountant can also assist with self-assessment for business directors and self-employed individuals, ensuring accurate payment of taxes and overall management of finances.

In the UK, a former company director must pass two conditions to be exempt from audit by an accountant;

The new company also must be a “Small Business,” meaning the annual turnover is less than £10.2 million and has less than 50 employees.

The reason new companies and startups decide to do self-accounting is they want to save money. The startup founders delegate small tasks to the rest of the team while taking care of more sophisticated processes themselves.

But the fact remains that doing accounting work requires patience and extensive knowledge of limited company accounting services, software and accountancy services here. That is why a professional accountant is preferred here.

Benefits of Hiring an Accountant for a Limited Company

When you hire an accountant for the company’s accounting needs, you can rest assured that all accounting tasks are completed on time. Plus, an accountant and accounting period can also become a trusted advisor and help you make informed decisions.

Accountants can also provide support in areas such as corporate finance, forensic accounting, and probate.

1.    Company Incorporation

Incorporating your company or registering the business cannot be done without completing requirements and compliances. Taking an accountant’s help, you can complete all the formalities flawlessly and speed up the business incorporation process. They can also give you free consultation and additional services to help you register limited companies for VAT and for regular employee payroll.

2.    Taxation and Liabilities

For company incorporation and afterwards, there are many advantages and several tax liabilities you must fulfill. An accountant will advise you about tax requirements limited company name, corporation taxation, and other tax compliance and legal requirements related to company formation, to own name, to companies house and to taxation of personal assets.

An accountant can help improve tax efficiency by conducting tax efficiency reviews, ensuring that your business operates in the most tax-efficient way.

3.    Business Strategy and Planning

In almost all types of business strategies and planning, costs are involved. When costs are involved, an accountant will play a major role in sharing recommendations and helping you find a budget for new business plans.

Hence, Limited company accountant’s help in this process will help you verify the accounting records of bank accounts, build accurate balance sheets year end accounts and tax due, regularly review and modify the liabilities and assets sections year end accounts and annual accounts, accordingly.

4.    Compliances with VAT and Other Taxes

An accountant will help you set up the VAT system and ensure that you are paying your share of the VAT to the government on time. When it comes to VAT, things can get complicated if you don’t have the requisite knowledge and expertise of the concept.

Given the sophistication of this tax type, you will need to follow all the rules and regulations. On top of that, as the rules and regulations change regularly and your lack of time to stay updated, doing VAT without an accountant can easily turn into a disaster.

With the top tax planning advice and help of an accountant, you can keep up with company tax and personal tax return and your VAT and function smoothly less personal tax and company tax return, without any penalties.

5.    Bookkeeping

Another time-consuming task in the accounting world is bookkeeping. A small business accountant offers specialized services for small businesses, such as balancing books, tackling tax, and aligning business finances with goals. Also, it’s a tedious task, and a non-accountant can lose their way within numerous figures. But for an accountant, bookkeeping is easy, and they know how to streamline their work.

In bookkeeping, you have to keep a record of every transaction, receipt, bank account, and invoice. This alone makes the entire process tedious and complicated. Plus, bookkeeping helps decide how much tax you must pay and how to save taxes.

So, if bookkeeping is not accurate, further processes will be affected. Taking this into the limited company accountancy, limited company accounting, and limited company accountancy services, liability status, and limited company accountancy side, having an accountant for your limited company is beneficial.

6.    Company Payroll

An accountant with all the support and right knowledge can also take care of the company’s payroll work. Since it’s another tedious task, don’t you think it’s best to give the same to a professional who has the required patience and experience to complete them on time?

Taking an accountant’s help, you current a good accountant who can set up the company tax return, efficient payroll scheme and complete an employer’s personal and corporation tax returns and duties on time.

7.    Tax Returns

In addition to the current accountant, taking care of all the company’s accounting tasks, a professional accountant will also be responsible for submitting the tax returns. Filing the taxes is essential for a company to keep functioning properly and avoid any legal issues.

Accountants can also help self-employed individuals manage their tax and improve their finances. Profit and loss are a part of any serious business structure, but its also an essential task to declare profit and loss every year to the government. This task can be handled pretty well by an accountant. The paperwork required to complete these formalities is enormous; hence you need an accountant’s services to complete everything on time.

Annual Accounting and Financial Reporting Needs

Every year, a limited company has to submit a bunch of documents related to work and financial information. Not doing so can lead to penalties and fines, which means an unnecessary burden on your finances.

Accountants can help small businesses manage their business finances by balancing books, tackling taxes, and aligning financial matters with business goals. Taking an accountant’s assistance, you can complete these formalities and submit all the documents to pay tax all on time. Since the accountant has a dedicated job to take care of such things, you won’t have to pay fines and worry about the documentation part.

How much does an accountant cost for Ltd company?

How much do accountants cost to work for an LTD company? The average monthly fee amount for a limited company accountant can vary from £90 to £1000 a month. Generally, the monthly fee amount you pay depends largely on the package you want.

Should I get an accountant for a limited company?

Although a limited company does not have the legal right video call for accountants there are several advantages. This limited company accountancy services will also be companies house take over legal responsibilities and tax liability and responsibilities of registering new businesses in their taxes.

Can I do my own accounting for Ltd company?

It is possible for an individual or limited business to have their own dedicated accountant to prepare and submit an annual account. Most limited companies employ specialist, limited companies or company accountants to manage their annual accounts however.

How do I find a good limited company accountant?

Look up reviews of small businesses not of the same size as yours. The reviews from the reviewers can be from larger businesses much bigger or smaller. A professional accountant can also offer testimonials from clients.

When considering whether or not to hire an accountant for your limited company, it is important to weigh the pros and cons. By doing so, you can determine the comprehensive range of potential benefits and savings that come with hiring a professional.

One significant advantage is the amount of time saved by delegating financial tasks to an accountant, allowing you to focus on growing your business.

Furthermore, having an accountant provides peace of mind by minimizing the risk of tax investigations and penalties. It is also crucial to consider the potential tax savings and improved cash flow forecasting that an accountant can bring, offsetting the cost of hiring one.

In comparison to the cost of hiring an in-house accountant, these benefits make it worthwhile to invest in a skilled professional.

When is the best time to get a limited company accountant?

Hiring limited company accountant as early as possible is highly recommended. They can contribute substantially to your business from the beginning, offering valuable guidance to help establish your new venture or company. Don’t delay, as the proverb suggests, the ideal time to hire an accountant is yesterday, but now is the next best opportunity.

Hiring limited company accountant before year end is a wise move for business owners. By doing so early days before, they can ensure that their books are accurately maintained and their finances effectively organized. Additionally, having a professional accountant onboard allows them to have a clear understanding of their tax liability, preventing any unexpected financial burden.

As a business owner, managing your own accounts can work well when your company is small. However, as your business grows and takes on employees, accounting becomes more complex and time-consuming. At this point, it is advisable to consider outsourcing or hiring a professional limited company accountant to handle these tasks efficiently.

Choosing the right Package for your Limited Company

Limited Company Accounting Packages are comprehensive solutions specifically designed to meet the financial reporting and compliance requirements of limited companies. These packages typically include a range of features and services to streamline the accounting processes for businesses operating under this structure. From bookkeeping and financial statements preparation to tax calculations and submissions, Limited Company Accounting Packages offer a one-stop solution to ensure that financial records are accurate and compliant with regulatory standards.

One of the key advantages of using Limited Company Accounting Packages is the ability to save time and resources by automating various accounting tasks. By leveraging advanced software and tools, businesses can efficiently manage their financial transactions, invoicing, payroll, and expenses without the need for manual intervention.

This not only reduces the risk of errors but also frees up valuable time that can be better spent on core business activities and strategic decision-making. Furthermore, Limited Company Accounting Packages provide a higher level of financial visibility and transparency, allowing business owners and stakeholders to access real-time financial data and reports.

This enhanced clarity enables better financial planning, budgeting, and forecasting, empowering companies to make informed decisions that drive growth and profitability. By investing in a reliable Limited Company Accounting Package, businesses can ensure financial stability, regulatory compliance, and long-term success.

Why choose Target Accounting as my limited company accountant?

We greatly appreciate your interest in our limited company accounting services. With a successful track record, we have received multiple awards for our expertise in accounting services for limited companies. Our team is known for being approachable, friendly, and professional, ensuring that you receive top-notch customer service.

We understand that limited company and online accounting software can be overwhelming for some, so we make it a priority to simplify complex jargon and relieve the stress of meeting your financial obligations. We genuinely look forward to helping you navigate your various accounting software needs with our extensive experience and commitment to excellent service.


There is no denying the fact that hiring a professional for a job pays off. When you hire a professional accountant, you will get precious peace of mind and an assurance that you won’t have to bear the consequences of financial and accounting irregularities. So, for companies, a limited liability or company, hiring an accountant is essential cost effective and beneficial.

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