Running your own limited company can be an extremely rewarding life choice, as you have the type of freedom and flexibility that permanent workers can only dream of, plus the incredible financial benefits, such as being able to set your own rates and claim certain expenses.
However, there is also the fact that you will have to take on many new roles and responsibilities that you may need some assistance with, such as the financial side of the business, which is where a limited company accountant can be a great asset.
How Can a Limited Company Accountant Help?
By having an accountant you’ll have help and advice at hand for when you are filling out forms, submitting numerous documents to HMRC, keeping your books in order etc…
A good accountant will be able to:
• Ensure you understand what taxes you will need to pay
• Provide proactive tax advice throughout the year
• Help you maximise your tax allowances
• Make sure you run your business as tax efficient as possible
• See that you don’t miss a tax deadline and that your submissions are accurate
• Advise you on how to manage your business.
They will also be able to keep you informed on areas such as:
• Performance ratios
• Customer activity
• Credit control
• Budget comparisons
What to Look For…
• Do they specialise in working with contractors?
It’s best to take on an accountant that specialises in working with contractors, so that they can offer you the best possible advice that will suit you and your working practices. It is very important that your accountant understands the ins and outs of how contractor tax works and knows how to advise you properly.
• What credentials do they have?
To find a good and trustworthy accountant you should see if they have any awards to back up their claims, such as great customer service or accountancy excellence.
• Are there any additional costs?
You should make sure that you’re aware of any additional costs that might be involved, such as if you’re to be charged every time you call or email your accountant. To avoid this look out for a fixed fee accountancy service that will give you a summary of what you will be charged each month.
• Where are they located?
This may not seem important but you may find yourself in a situation where you need to meet up with the person who is handling your financial affairs. The closer they are based to you, the easier it will be to get to them if need be.
• Are you able to meet your accountant?
Even if you go years and years without having to meet your accountant face-to-face, it’s important that you know that a meeting is possible if need be.
• Do you have one point of contact?
Try to ensure that you are allocated one point of contact for all subjects – the same person for tax, bookkeeping, expenses etc. so that you are not constantly being passed around.
As long as your limited company accountancy firm meets all of these requirements, you can rest assure that your finances are being taken care of properly.