Skip to main content

Limited Company Accountant Roles & Responsibilities

By 30/01/2023June 23rd, 2023No Comments
limited company accountant small business accountant Direct Peak

Starting a limited company is an exciting step in your business journey. However, there are certain steps to take and documents to prepare before you start your official registration process. If you don’t know where to start, this guide will provide a comprehensive overview of the steps that need to be taken before you can establish your limited company and the role of a limited company accountant.

Choose a company name

An ideal starting point is thinking about what to call your company. It needs to be a unique name and not similar to other companies on the Ltd company register. You can check Companies House to see if your chosen name is available.

You need to be careful not to choose company names that might have trademarked words. It’s also worth checking at this point domain names to make sure you can get your desired website address if you are planning on using the company name in this address.

Register your business

You will need to register your company at the company’s house. It may be worth seeking professional advice from an accountant at this point to help you through the process of discussing different share options, although this can be done independently. After this step has been completed successfully, directors must be appointed who are responsible for making decisions about how the company is run—and ensuring that all legal obligations are met (which includes filing annual accounts).

Directors must also provide their personal information such as date of birth, address history etc., which will then be kept on public record at Companies House along with other required documents such as Articles of Association (a document outlining how the company should be run) and Memorandum of Association (a document which outlines the purpose and objectives of the company).

Set up a business bank account

Opening a business bank account is an important step in setting up your business. It helps you manage your finances, track your expenses, and set up automatic payments. Firstly, you have to choose a bank. Depending on the type of business you’re running and your budget, there are different types of accounts that may be right for you.

For example, if you’re just starting out, you may want to look into an online-only start-up account. Create your business profile, which includes all information regarding your company. Lastly, provide documentation, as most banks require proof of identity, such as passports or driver’s licences, before they allow customers to open an account.

Obtain Insurance

Liability and other insurance will need to be obtained. If you have transitioned from a sole trader to an Ltd company, insurance will need to be obtained in the Ltd company name. This is because the Ltd company is considered a separate legal entity and is therefore responsible for obtaining its own insurance coverage.

It is important to have liability insurance to protect the company from potential lawsuits or financial losses due to third-party claims of injury or damage. Other types of insurance, such as property or workers’ compensation, may also be necessary, depending on the nature of the business. It’s highly recommended to seek professional insurance advice when starting a company to find out the coverage that is needed.

Set up a business plan

This is important for any business owner; it can help you achieve your business goals more effectively. It can also be helpful in securing business funding.

A business plan is a detailed document outlining the specific steps and strategies that a business will take to achieve its goals. It typically includes information on the company’s products or services, target market, financial projections, and management team.

Having a well-written business plan can help a business owner stay organised and focused and can also be used to attract investors or secure business loans. It is also a good idea to periodically review and update the business plan to ensure that the business is on track to achieve its goals.

Register for Taxes

When you register your company at a company’s house this will automatically trigger corporation tax. Corporation tax is the tax a limited company pay on their profits

You don’t need to register for vat until your turnover reaches a certain level, currently for the 22/23 tax year this is £85K. You can voluntarily register for vat under this threshold, and some choose to do this to increase credibility. It’s important to understand your requirements and obligations associated with being vat registered so we would recommend seeking professional advice before doing so. There are also many different vat schemes that they will be able to advise you on.

PAYE enables you to pay staff and also potentially directors. It’s important not to register for PAYE until you are ready to pay staff, as once registered, a return will need to be filed every month even if no one is paid during the month.

Looking for business accountancy services

    Stay up-to-date with the latest accounting news and insights on our blog!

    We hope that you found this accountant blog useful and will continue to read our other blogs here: Are You Looking To Hire An Accountant? Here’s What You Need To Know. We have many more topics that we would like to cover on our accountant blog, and we encourage you to check them out regularly, follow us on Facebook, Twitter or share or like our blogs.

    Discover the potential of your business and the benefits of our affordable accounting services. Start using our accounting services today!

    Direct Peak Accountants is here to help your business grow and reach its full potential. We have the expertise and experience needed to support you in meeting your goals. Get the advantage of our professional services at a very affordable price!

    Reach us through LinkedIn or call us at 01733 973308 and get a FREE quote now! Start using our accounting services to grow your business with us, and we will help you with all your accounting needs.

    Get full-service accounting solutions from Direct Peak Accountants!

    Direct Peak Accountants is a full-service accounting firm specialising in bookkeeping services, tax services, virtual CFO services, and payroll services. We are committed to providing our clients with the highest quality of service at an affordable price.

    We have a team of dedicated small business accountants who work hard to help you make your business reach its full potential. We are dedicated to helping you achieve your financial goals by giving you the tools needed to make informed decisions about your finances.

    Everything you need to know about accountants for small businesses.

    Is it worth getting an accountant for small businesses?

    Absolutely! An accountant can be a game changer for small businesses in terms of taxes and finances. Many small business owners don’t have the time, resources or expertise to expertly manage their taxes and finances, so an accountant can save them from costly mistakes and provide valuable insight on how to reduce their tax burden and maximise profits.

    What is the role of an accountant for small businesses?

    The role of an accountant for a small business is invaluable. An accountant can help create and maintain accurate financial records, track expenses and income, manage payroll, analyse financial performance, and generate meaningful reports for both internal use and external stakeholders such as lenders or investors.

    Accurate financial records are essential in order to ensure the proper filing of taxes, secure insurance coverage if needed, obtain financing from lenders or investors if necessary, and provide an ongoing snapshot of the company’s finances. Accounting software has made this process much easier than it used to be; however, having someone knowledgeable in finance can still go a long way toward ensuring that all areas are covered.

    What type of limited company accountant is best for small businesses?

    When considering the type of accountant best for small businesses, it is important to consider the size and complexity of your business.

    For smaller businesses with simpler financial needs, such as chargeable time tracking, billing clients for services provided, and paying GST/HST taxes on revenue generated from sales activities, bookkeepers are often sufficient. They also assist companies with reconciliations, including accounts and payable activity each month.

    Although bookkeepers might be able to file corporate income tax returns (based on provincial regulations), they may not offer complex accounting advice that would require an advanced understanding of accounting principles.

    How much is an accountant for small businesses in the UK?

    The cost of hiring a limited company accountant for a small business in the UK can vary greatly depending on the size, type of business, and services you want. Contact Direct Peak now and ask us for a quote!

    What are the skills that a limited company accountant should have?

    Accountancy involves a wide range of important skills, from accurately taking financial records to effectively communicating financial information. Being an accountant requires many technical aptitudes, as well as strong communication and interpersonal skills. An accountant should have attention to detail, analytical thinking, maths proficiency, problem-solving, communication skills, and technology skills.

    Steve Marshall
    Steve Marshall
    The whole team at Direct Peak have been amazing to work with. Everything we have been looking for from an accountant. Thank you from Acoustic Associates
    Luke Tyler
    Luke Tyler
    The Direct Peak team are exceptional in all they do. They demystify my questions on accounting, offer clear, sound advice, and help me to make informed decisions about my business.
    Don Wiid
    Don Wiid
    Karl Newman and his team help us with our Xero accounts system, making sure it is accurate and up to date. The real value though, is Karl's experience as a management accountant, providing indispensable advice on a monthly basis to ensure we keep growing.
    Craig Sawyer
    Craig Sawyer
    Direct Peak are the perfect accountants for me. Always helpful and friendly. They take away any of my accountancy headaches which allows me the time to focus on my business. Would highly recommend them and do to any business owners I can. Thank you all !
    Kelsey Brace
    Kelsey Brace
    I've worked with Karl & Direct Peak for years. They have always provided great service and advice. Highly recommeded!
    Sana Hanassi-Savari
    Sana Hanassi-Savari
    Great service, I would highly recommend them. The team are friendly, always around to help and very knowledgable.
    Simply Antivirus
    Simply Antivirus
    Direct Peak was the right choice for us. Outstanding friendly service. The team are highly knowledgeable regarding tax and financial matters, and they have been an asset to the running of our business. Very approachable and have an answer to all my questions. Highly recommend them! Very well done guys!
    catherine Johnson
    catherine Johnson
    I recently changed my Accounting to Direct Peak, mainly due to Karls brilliant support with advice regarding making Tax Digital and around my business growth intentions. Having run my own small business and being with my previous accountant for 13 years, I have been SUPER impressed with every aspect of the move - the advice, the support, and mostly the friendliness of the team and their willingness to want to help. Eve has been so amazing at supporting me to make the transition to Digital VAT returns - I cannot recommend Karl and his team at Direct Peak highly enough - Thanks Guys!
    Peter Baker
    Peter Baker
    Karl has been outstandingly patient and generous with his time. I cannot recommended Karl enough. He has helped massively in starting up my own company.
    Click Here

    Dedicated Contact

    Direct Peak provides a dedicated business tax accountant, who will prepare your annual accounts and tax returns. They will be on hand to answer any tax queries you have.

    Click Here

    Tax Efficient

    Your business tax accountant will ensure that the company is set up in the most tax-efficient way and that you are claiming for all the correct expenses to maximise your earnings.

    Click Here

    Quick Turnaround

    We aim to turn around the annual accounts and tax returns quickly to give you visibility of your tax bill well in advance of it being due.

    Close Menu