When a businessman sets up a limited company, aside from the different components of the business, he or she must also consider accounting. Accounting is not to be taken for granted by joining the bandwagon of do-it-yourself practices. There is a deep sense of urgency to seek accountancy services for contractor unless perhaps if you are an accountant yourself because there are many things you cannot do without the help of an accountant. The following are the functions your accountant can do for your business.
1. Administrative and Paperwork
Recording and filing are inevitably parts of the accounting process. These are time-intensive and never-ending procedures but crucial that you cannot ignore doing. As a director of your own limited company, it is your duty to keep records updated especially with the culture of penalty for late register a limited company filing and late payment. This might draw you outside the core business responsibility but a contractor accountant can assist you systematize everything.
2. Keeping an Accounting System
Accounting system is undeniably a must for the business. It keeps the record of your company figures intact, updated and easy to retrieve, making financial transactions easier. It permits you to know the health of your company whether there is a call for expansion or urgency to cut back expenses. Moreover, a professional-looking financial statement will be a ticket to bank loans and potential investors. Accountancy services for contractor will manage the accounting system and will guide you along the way.
3. Filing of Tax Returns
Unless you opted to do PAYE (Pay as You Earn) scheme, filing of tax returns is mandated by the government especially when you have income from numerous sources. As a business owner, you have bigger obligation than mere filing of your income tax return, not to mention the actual paying of your taxes. Entrust the responsibility to the contractor accountant and you will save time and effort.
4. VAT Registrations
Value Added Tax (VAT) registration depends on the nature of your business. Determine whether your business qualifies or not, and if there’s a need to undergo the process. Your accountant will help you figure it out.
5. Bank Reconciliation Process
Understanding bank reconciliation process basically requires full grasp of general accounting principle. The process involves comparison of the bank statement versus cash account in company’s general ledger to ascertain compatibility and to know “real” cash count. Bank statement reconciliation is a tedious task and immensely time-consuming. Business owner definitely cannot afford to do the reconciliation process or to neglect the task either.