Do I Need an Accountant for a Limited Company or Small Business?

If you’re asking yourself “do I need an accountant for my business?”, you’re not alone! Thousands of people each year try and work their way through the tax system, and often to no avail.

Yes, if you’re a very organized person, you do have the option to prepare and file your accounts without the help of an accountant. But, it’s a steep learning curve.

Here’s why you should work with a business accountant. We’ll also share some tips on how to choose the best accountant for your business.

Do I need an Accountant for a Limited Company?

So, do you need an accountant? The truth is: not necessarily. That being said, as we mentioned above, preparing and filing your own taxes is a steep learning curve. And, when not done correctly, can cost you more than it should. That’s not to mention the amount of time it will take you to prepare and file your taxes correctly and on time.

A Note on filing Your Company Accounts

Whether your company is active or dormant, you have to file your company accounts at Companies House. You also have to do this within nine months of the ARD, or Accounting Reference Date.

Typically, this means that you must register your company accounts before the last calendar day of the month in which your company was registered. For example, if you registered your company on December 5, 2020, you would have to register your accounts before December 31, 2021. You can check the exact date on the government website.

Every year, you should also ensure that the information Companies House has about your company is correct. This is called a confirmation statement. Additionally, if you receive a notice to deliver a Company Tax Return from HMRC, it’s important that your corporation does so in the correct time frame.

Do I Need an Accountant & What Can They Do for My Business?

Having an accountant comes with a wealth of advantages, regardless of whether you are self-employed or run a limited company.

Running a small business takes a significant amount of time and if this time is spent on bookkeeping, payroll, and filing your company’s HMRC returns, you’ll find yourself with little time left to spend on your day-to-day operations. With this in mind, working with a qualified accountant will free up your time so that you can focus on getting your business where you want it to be long-term.

Moreover, as your business grows so will your accountant’s input. At Newnham & Son, our team works closely with each and every client, providing everything from financial guidance and reporting to advising on matters of compliance and tax efficiency. We will also support you in your business planning while covering your back when it comes to payroll and bookkeeping.

As Chartered Management Accountants, we can help save you money by improving your cash flow while also increasing tax efficiency. We will offer you invaluable support every step of the way, providing you with reliable financial information that will help you make key business decisions.

Choosing the Right Accountant for Your Business

So, “do i need an accountant for a limited company?”, the answer is most likely yes! While a quick online search will provide you with a wealth of accountants to choose from, it’s important that you consider the following:

Personality Is Key

If you don’t have a trusting relationship with your accountant, it’s not going to work out. Regardless of how hands-on you want to be with your finances, you will be spending regular time with your accountant, be it online or offline. With this in mind, make sure you have a personal connection with them.

Find Out More About Their Services

Working with an accountant that only has experience with sole traders if you’re starting a limited company may not provide you with the value you’ve been looking for.

With this in mind, ask about your potential accountant’s services. Who do they work with? Do these services meet your needs? Do they offer different packages? What about training? All of these are questions you should bring up during your first consultation.

Training & Qualifications

Your accountant will be at the front line when it comes to your finances. It is, therefore, exceptionally important that they have the adequate training and qualifications to do the job correctly.

The first step is to ensure that they are qualified through one of the recognised UK bodies. There are various professional bodies in the UK, all of which require their members to have a high level of skill and training.

Small or Large Firm?

When it comes to choosing a firm, you may want to match like with like. This means that if you’re a sole trader with only a few jobs or projects each year, you may only need the services of a small firm. On the other hand, if you’re a fast-paced business that plans to grow quickly, a larger firm may be best.

While the size of your accountant’s firm does matter, you may find that small to medium firms offer you a more personal experience. Newnham & Son is a family-owned business that believes in staying true to its core values. This means that we work day-in, day-out to run an honest, open, ethical, and quality practice, providing all of our clients with proactive and open communication every step of the way.

Does Location Matter?

Regular face-to-face meetings can provide you with the added personal touch that you’ve been looking for. That said, the majority of an accountant’s work will be done remotely and, therefore, location is not a paramount factor to keep into consideration.

How Newnham & Son Can Help You!

We focus on you every step of the way. 

From sole traders to limited companies, personal tax clients, and partnerships, we tailor our services to meet your needs. Each and every one of our employees have the knowledge and expertise to support your individual goals. Most importantly, we offer a personal client experience so that you feel supported throughout the entire process.

With over 30 years of experience, Newnham & Son has established itself as one of the leading accounting firms in Hampshire, serving clients in Petersfield, across the South East and London, as well as further afield.

To find out more about how we can help you, contact us today!