An increasing number of people are opting to work through their limited companies. The main factor behind this trend is the excitement of being one's own boss, and the changed corporate working practices. Working for one's own self sounds very liberating and thrilling. It offers freedom from fixed working hours and other restrictions involved in an employment, but it also puts more workload on you. Instead of doing a particular task as an employee, you become responsible for all the different aspects of running a company.
One of key decisions to make when you set up your limited company is whether to appoint an accountant or manage the accounts on your own. If you consider this from a legal point of view, you are not obliged to hire a professional for your accountancy needs. If you have the requisite knowledge of company accounts and understand all the mandatory form requirements, tax intricacies, etc., then you can certainly choose to do the work yourself.
However, looking at the subject from a practical angle, you may wonder if it is really possible to do the accounts and make all the tax or form submissions in time when you have so many other work-related responsibilities to fulfill? With an accountant working for you, you can devote your time and energy to performing your limited company's core activities that consist of your specialized skills. Any leisure time that you can spare from work can be spent relaxing with family & friends.
The services of accountants involve much more than just checking your receipts and invoices through the year, and filing in your tax return at the end of the year. Tax planning is a major service provided by professional accountants. They help structure the company in a tax-efficient manner and guide you in maximizing your earnings. They possess an in-depth knowledge of the tax system that regulates your company and keep themselves updated with the latest legislative or regulatory changes. They offer you timely compilation of the company's annual accounts, accurate computation of your corporate and personal tax liabilities, and on-time payment of all taxes and filing of tax returns.
Summing it up, you may be able to save some money by managing the company accounts yourself, but the time and effort you have to devote for it may not seem very reasonable. Moreover, a single mistake or oversight in the tax matters can invite a penalty many times more the savings you make by not hiring an accountant.
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