05 Nov 3 accounting tips for limited companies
Did you know that as of 2019, there were reportedly around 2 million limited companies actively trading in the UK?
These figures show that this type of business is just as key to the national economy as sole traders or non-limited SMEs. If you are setting up or running a limited company, keeping on top of your accounts is key. The requirements for limited companies from HMRC are very specific in many areas though and differ from what is asked of other types of business.
But what tips can you use to ensure your limited company accounting stays in order?
Use a separate business bank account
In truth, this is a sensible tip if you run any kind of business. When it comes to limited company accounting though, it is a legal necessity. It is usually best to open a separate business account when you first register your business at Companies House. Opening a specific business account not only keeps you in line with the law but also keeps your personal and business money separate.
Don’t use company cards for private purchases
This is a very important tip to remember for any limited company owner. As with having a separate bank account, following this advice will keep you in line with the law and make managing your business accounts much easier. The simple rule is that you should have a business credit card which is used only for business expenses. Do not be tempted to use a personal credit card for business purchases or costs.
Know your dates and responsibilities
As we have already mentioned, operating as a limited company means you need to report your income to HMRC in specific ways. This can often catch people out who move from non-limited trading to being a limited company. It is key to understand when you should be submitting returns or forms. It is also essential to ensure it is done – even if you do not prepare or submit them personally. Perhaps the most famous example of this is the quarterly VAT returns you must submit as a limited company.
Limited company accounting in Manchester
The above are just a few useful tips when it comes to limited company accounts. As you would expect, it is actually a complex and involved field. With this in mind, many business owners in Manchester will outsource their accounting needs to a professional accountant. Here at SQK Accountancy, we have lots of experience in helping limited companies with their accounts. Get in touch today on 0161 706 0444 to see how we can help.