What Does an Accountant Do for a Limited Company?

A limited company accountant in Farnborough can help directors manage annual accounts, Corporation Tax, bookkeeping, payroll and their principal filing obligations. Running a limited company involves more than completing one tax return at the end of the year. Directors must maintain appropriate records, prepare annual accounts, deal separately with Companies House and HM Revenue and Customs (HMRC), and manage other obligations that may include payroll, VAT and director transactions.

These responsibilities do not all have the same deadline or reporting process. A company may therefore be trading successfully while its bookkeeping is incomplete or an important filing date approaches.

A limited company accountant in Farnborough can help organise the company’s financial records, prepare required accounts and tax filings, explain the figures and establish a practical compliance timetable. However, the exact support depends on the services agreed, so directors should understand what an accountant normally does—and what remains their own responsibility.

How a Limited Company Accountant in Farnborough Can Help

A limited company accountant normally helps maintain reliable financial information, prepares statutory annual accounts, calculates the company’s Corporation Tax position and prepares the Company Tax Return. Depending on the engagement, the accountant may also provide bookkeeping, VAT returns, payroll, management accounts, tax-planning support and assistance with Companies House filings.

Government guidance confirms that directors can hire an accountant, but remain legally responsible for the company’s records, accounts and performance. The relationship works best when responsibilities are clearly allocated.

Who is this guide for?

This guide is relevant if you are:

• Starting your first limited company.
• A director approaching the company’s first year-end.
• Preparing records using spreadsheets or accounting software.
• Employing staff or paying a director through payroll.
• Registered, or considering registration, for VAT.
• Unsure how much Corporation Tax the company may need to pay.
• Taking money from the company without a clear salary, dividend or director’s-loan process.
• Dissatisfied with an accountant who only contacts you near the filing deadline.
• Looking for a limited company accountant in Farnborough or the surrounding area.

The main services a limited company accountant can provide

1. Setting up the accounting process

An accountant should first understand the company’s activities, year-end, transaction volume, bank accounts, employees, VAT position and systems. This supports a proportionate record-keeping process.

The company is a separate legal entity, so its finances should be kept separate from the director’s personal finances. A dedicated business bank account and an organised method for retaining invoices, receipts and bank statements make this much easier.

The accountant can establish who records transactions, reconciles accounts and supplies information.

2. Bookkeeping and reconciliations

Reliable bookkeeping records income, expenditure, assets and liabilities, forming the foundation for accounts, tax returns and management information.

Depending on the agreed service, an accountant may:

• Record or review sales and purchase transactions.
• Reconcile bank, credit-card and payment-provider balances.
• Review unpaid customer invoices and supplier balances.
• Check how transactions have been categorised.
• Maintain records of fixed assets, loans and amounts owed to or by directors.
• Prepare bookkeeping information for VAT returns and year-end accounts.

Regular bookkeeping reduces year-end queries and gives directors more reliable information.

3. Preparing statutory annual accounts

Annual accounts normally include a balance sheet, profit and loss account and relevant notes, with presentation depending on the company’s circumstances.

The accountant reviews records, processes year-end adjustments and prepares accounts for director approval, filing with Companies House and submission to HMRC with the Company Tax Return.

According to current GOV.UK guidance, a private company normally files annual accounts with Companies House within nine months after its financial year ends. Different rules apply to first accounts, so directors should confirm their company-specific deadline.

4. Corporation Tax and the Company Tax Return

An accountant can use the final accounting information to calculate taxable profits, consider relevant adjustments and reliefs, prepare the Corporation Tax computation and complete the Company Tax Return.

For a typical private company, Corporation Tax is usually payable nine months and one day after the accounting period ends, while the Company Tax Return is normally due 12 months afterwards. Check the company-specific dates.

The accountant should explain the liability and payment process; directors should not assume HMRC will issue a bill.

5. Payroll and director remuneration

If the company pays salaries, it may need PAYE payroll. Work can include calculating pay, submitting Real Time Information, producing payslips and handling starters, leavers and year-end reports.

The provider may also support workplace-pension auto-enrolment; confirm whether assessments, uploads and correspondence are included.

Directors should discuss how money will be taken from the company before making irregular withdrawals. Salary, dividends, reimbursed expenses and director’s loans have different accounting, company-law and tax consequences.

6. VAT returns and VAT records

For a VAT-registered company, an accountant may prepare returns, check transaction treatment and support digital records. Extra care may be needed for overseas, property or construction transactions.

Agree who checks, approves and submits each return. Incomplete bookkeeping can create corrections later.

7. Management accounts and business information

Management accounts, often prepared monthly or quarterly, may cover profit, cash, debtors, creditors and budgets. They help directors make decisions using current rather than historic information.

8. Companies House and general compliance support

An accountant may help with confirmation statements and company-detail changes if included. Directors should still monitor registered information and forward official correspondence promptly.

Common mistakes limited company directors make

Treating company money as personal money

Using the company bank account for personal spending without proper records can create director’s-loan, payroll, benefit or dividend issues.

Leaving bookkeeping until the year-end

Late bookkeeping makes missing invoices, unreconciled balances and incorrect VAT treatment harder to resolve. It also prevents the director from seeing reliable results during the year.

Confusing Companies House and HMRC deadlines

Annual accounts, Corporation Tax payment and the Company Tax Return have separate deadlines. Filing the accounts does not automatically mean every tax obligation has been completed.

Assuming every accounting service is included

Payroll, VAT, bookkeeping, confirmation statements, Self Assessment and management accounts may be outside a basic annual-accounts package. Confirm the scope in writing.

Believing the accountant replaces the director’s responsibility

An accountant can prepare and file information, but directors remain responsible for providing complete records, reviewing the accounts and ensuring the company meets its obligations.

When should a director seek professional help?

Speak to an accountant when forming the company, taking money from it, hiring employees, approaching VAT registration or preparing for the first year-end. Help may also be appropriate for unreconciled balances, overdue filings or unfamiliar official correspondence. Early involvement allows more time to organise records and resolve issues.

Frequently asked questions

Does every limited company need an accountant?

A limited company is not generally required to appoint an accountant solely because it is incorporated. Directors must nevertheless meet their accounting, tax and filing responsibilities, so many choose professional support.

What information will my accountant need?

Typically, the accountant needs bookkeeping records, bank statements, invoices, loan agreements, payroll and VAT information, plus explanations for unusual transactions. Request a tailored checklist early.

Can an accountant file everything for my company?

An authorised accountant can file accounts and tax returns. Payroll, VAT and confirmation statements depend on the engagement, while directors retain legal responsibility.

Can I change limited company accountants during the year?

Yes. Allow time for professional clearance, record transfers and agent authorisation. Check existing terms and agree the new responsibilities in writing.

How often should I speak to my accountant?

Annual contact may suit straightforward compliance, while a growing company may benefit from monthly or quarterly reviews. Agree the frequency at the outset.

Looking for a limited company accountant in Farnborough?

Jassim Financial Solutions Ltd supports limited company directors with annual accounts, Corporation Tax, bookkeeping, VAT, payroll and management accounts. We provide a professional, proactive and approachable service designed around the company’s actual requirements rather than a standard list of services.

As ICAEW Chartered Accountants, we serve directors and small businesses in Farnborough and surrounding areas. Support is available in English, Punjabi and Hindi.

Request a review of your company’s accounting and compliance requirements.

Request a Limited Company Review

Disclaimer

This article provides general information only and does not constitute accounting, tax, legal or financial advice. Requirements and deadlines depend on the company’s circumstances and may change. Obtain professional advice before taking or refraining from action, and check current HMRC and Companies House guidance before making decisions or submitting information.