Running a limited company comes with various financial and legal responsibilities. While some business owners attempt to manage these themselves, hiring an accountant can offer significant benefits. But do you really need one? Let’s explore what an accountant can do for your limited company and when the best time is to hire one.

What Can an Accountant Do for My Limited Company?

1. Register and Set Up Your New Limited Company

Setting up a limited company involves several steps, including registering with Companies House, setting up a business bank account, and ensuring compliance with tax regulations. An accountant can handle all these processes efficiently, ensuring that your company is set up correctly from the start.

2. Manage Your Payroll

If your company has employees, you must run payroll, deduct taxes, and submit payments to HMRC. An accountant can manage this process for you, ensuring employees are paid on time and all tax obligations are met.

3. File Your VAT Returns

Once your company reaches the VAT threshold (currently £90,000 in the UK), you must register for VAT and submit returns regularly. An accountant ensures your VAT returns are filed correctly and on time, avoiding potential fines and ensuring you claim back any VAT you are entitled to.

4. Save You Time with Bookkeeping

Bookkeeping can be time-consuming and complex, involving tracking income, expenses, and financial transactions. An accountant keeps your records organised and accurate, giving you more time to focus on growing your business.

5. Provide Cloud Accounting Software Like FreeAgent & Xero

Many accountants offer cloud-based accounting solutions like Xero, QuickBooks, or FreeAgent. These platforms make it easier to track your financials in real time, generate reports, and streamline tax submissions.

6. File Your Annual Accounts

As a limited company, you must submit annual accounts to Companies House and HMRC. An accountant ensures these are accurate, compliant, and submitted on time to avoid penalties.

7. Submit Your Tax Returns

Limited companies must file a Corporation Tax return (CT600) each year. An accountant calculates how much tax you owe, ensures deductions and allowances are applied correctly, and submits the return to HMRC on your behalf.

Pros of Hiring an Accountant for Your Limited Company

• Saves Time – You can focus on running your business instead of dealing with complex financial admin.
• Ensures Compliance – Accountants stay updated with tax laws and regulations, reducing the risk of fines or penalties.
• Reduces Errors – Mistakes in tax returns or bookkeeping can be costly; an accountant ensures accuracy.
• Improves Cash Flow Management – A good accountant can help manage your finances effectively, improving profitability.
• Access to Expert Advice – Accountants offer financial insights that can help your business grow.

When Is the Best Time to Get a Limited Company Accountant?

While you can manage your finances on your own, hiring an accountant early can help you avoid costly mistakes. The best times to consider hiring an accountant include:

• When Setting Up Your Limited Company – Ensuring compliance from the start can save you a lot of hassle.
• When Your Business Starts Growing – More income and expenses mean more complex financial management.
• When You Hire Employees – Payroll and tax obligations become more complicated.
• Before Tax Deadlines – Avoid penalties and ensure your accounts are in order before submitting tax returns.

Conclusion

While hiring an accountant isn’t a legal requirement for a limited company, it can significantly ease your financial workload, ensure compliance, and provide valuable business insights. If you want to save time and avoid financial stress, hiring an accountant is a smart investment for your business.