How much does a small limited company accountant cost? (2023)

As a new business owner, you'll often find yourself juggling numerous roles and tasks-from growing your business to managing your operations, finances and taxes.

In addition, you're now required to meet your legal obligations as a limited company director-such as filing the necessary paperwork and accounts on time, or you'll risk being penalised.

Staying on top of these tasks can feel overwhelming, and here's where a limited company accountant comes into the picture.

Below, we'll look into the following:

• What you can expect to pay for limited accounting packages
• Services that are included in the cost
• FAQs relating to choosing a limited company accounting provider

Importance of accounting for small limited companies

Accounting plays a crucial role in the success and sustainability of small limited companies. Here is a brief explanation of its importance:

1. Financial Management: Effective accounting enables small limited companies to track and manage their financial resources efficiently. It provides insights into the company's financial health, including cash flow, revenue, expenses, and profitability. By monitoring these key financial indicators, businesses can make informed decisions regarding budgeting, investments, and cost control.

2. Compliance and Legal Requirements: Small limited companies are obligated to meet various legal and regulatory requirements related to financial reporting and taxation. Accurate accounting ensures compliance with these obligations, including timely filing of tax returns, maintaining proper records, and adhering to accounting standards. Failure to comply can result in penalties, legal issues, and damage to the company's reputation.

3. Tax Planning and Optimization: Accounting helps small limited companies optimize their tax positions by identifying deductions, exemptions, and incentives available to them. Through careful tax planning, businesses can minimize tax liabilities and maximize their tax efficiency, ultimately saving money and improving their financial performance.

4. Decision-Making Support: Sound financial data and reports derived from accounting enable small limited companies to make informed decisions. It provides a clear picture of the company's financial position, allowing business owners to evaluate performance, assess profitability, and identify areas for improvement. This information serves as a basis for strategic planning, investment decisions, and future growth strategies.

5. Investor Confidence and Funding Opportunities: Investors and lenders often rely on accurate financial information to assess the financial stability and growth potential of small limited companies. Proper accounting practices instill confidence in stakeholders and enhance the company's credibility, making it easier to secure funding, attract investors, and negotiate favorable business relationships.

6. Business Evaluation and Growth Planning: Accounting data facilitates the evaluation of business performance over time. It enables small limited companies to track key performance indicators, identify trends, and measure progress towards financial goals. This information is invaluable for setting realistic targets, developing growth strategies, and monitoring the success of business initiatives.

In summary, accounting is vital for small limited companies as it provides financial insights, ensures compliance with legal obligations, supports informed decision-making, attracts investors, and facilitates business growth.

Accountancy fees can vary greatly, depending on the types of services you need, the size of your company and the scale of your activities.

Most accountants will charge a monthly fee; the fees will vary based on what's included in the package but will likely fall between £150 and £300 monthly. Aside from a monthly fee structure, accounting providers may charge an ad-hoc fee or on a service-by-service basis.

At GoForma, we offer accounting packages that start from £75 per month, and one-off limited company accounts costs start at £299.

When selecting an accounting package, you should check if it contains essential features you'll need.

While what's considered essential will vary across businesses, the core services that most limited companies will require are:

• Use of an online accounting software
• Access to a limited company accountant
• Processing your payroll
• Completing your year-end accounts
• Submitting your corporation tax return
  

Additional services that you may require include: 

• Completing your VAT return
• Filing your confirmation statement
• Completing your self-assessment tax return
• Company formation services
• Providing a business address
• Bookkeeping services
• Personalised advice, such as business reviews or financial health checks
  

At GoForma, we offer accounting packages for contractors, self-employed & sole traders, and small businesses & start-ups.

How do I pay accountancy costs for ltd company to my provider?

You may be charged monthly, quarterly or yearly, depending on your provider.

If you sign up with GoForma, you'll be charged every month. Once you've confirmed your purchase on our website, we'll send a secure link via email so you can set up a monthly direct debit.

What should my accountant expect from me?

As with any professional you work with, your accountant would expect you to be timely, responsive and transparent - particularly when you're asked to provide information near key tax deadlines.

Being timely and responsive gives your accountant everything they need to ensure you'll meet your tax payments and deadlines.

How do I select the right provider for my limited company?

Ask the right questions.

Interviewing prospective accounting providers is important in evaluating whether they fit your company well.

Here are some questions that can help you make your decision: 

• Can you share your thoughts regarding a certain tax deduction?
• Can you provide feedback about my current accounting system and processes?
• What steps would you take to prepare me for the tax season?
• What steps would you take to improve my bottom line?
• Have you worked with businesses in my industry? Are you familiar with the challenges particular to my sector?
• Will I work with multiple accountants or be assigned a dedicated accountant?
• How will you ensure that I don't miss a deadline?
• How do you manage negative customer experiences or complaints? Can you share a challenging customer incident you've helped resolve?
• How accessible will my accountant be?
• How will they help me optimise my taxes?

Check for hidden charges

Are there hidden ltd company accountancy fees or extra costs that you might be unaware of?

For example, certain providers may impose fees for completing your self-assessment or VAT registration and return or an additional charge if you decide to terminate your plan before a minimum term is up. As such, it's key that you clarify questions you may have before you purchase a package. 

Do your research 

Make sure you do a thorough check for reviews across different review platforms and social media channels.

Beyond online reviews, speak to other business owners within your industry to hear what they say about the prospective providers you're evaluating.

Price isn't everything; customer support is key

Bear in mind that price is just one of the factors of consideration when you're assessing potential providers. And given that the pricing charged by leading providers typically does not differ significantly, other factors - such as customer service - hold greater importance.

You can take several steps to ascertain if an accounting provider offers reliable customer support. Read online reviews across different review platforms, and check if the support team can be contacted via various channels, including online forms, email, phone and social media channels.

Try sending through a couple of questions to assess the responsiveness of their customer service team, and steer clear from providers that don't indicate their contact details online.

Our approach to accounting gives each of our clients a personalised, bespoke experience tailored to their specific needs. we provide cheap accountants for limited company with high quality of accountancy services.

But don't just take our word for it; check out our reviews on TrustPilot and Google!

To book a call with one of our certified accountants, visit our calendar to book a FREE consultation here.

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1. What factors can influence the cost of hiring a small limited company accountant?
   ‍Factors such as the complexity of the business, volume of transactions, industry-specific requirements, company size and revenue, and geographic location can affect the cost of hiring an accountant.
2. Are accounting services typically charged based on hourly rates or fixed fees?
   Accounting services can be charged based on hourly rates, monthly or annual retainer fees, or fixed fees for specific services or packages. The charging method may vary among accountants.
3. What is included in the typical service packages offered by small limited company accountants? Accountant packages can vary, but they often include bookkeeping, financial statement preparation, tax planning and compliance, and general business advisory. Additional services or add-ons may incur extra costs.
4. How can I evaluate the right accounting services for my small limited company?
   ‍Evaluating accounting services involves assessing the specific needs of your company, comparing the services and expertise offered by different accountants, considering client testimonials and reputation, and conducting interviews or consultations with potential candidates.
5. Can hiring a small limited company accountant provide long-term cost savings?
   Yes, hiring a competent and cheap accountants for limited company can lead to long-term cost savings by optimizing financial management, identifying tax-saving opportunities, providing strategic advice, and ensuring compliance with legal and regulatory requirements.