Choosing the right accountant for your limited company is the foundation to your business's financial well-being and overall success. An experienced accountant plays a vital role in managing finances, ensuring compliance with tax laws, and providing valuable advice, all of which contribute to the financial stability and growth of the business.
Essentially, the right accountant can help set a strong financial foundation, they can save you time, minimise your tax liability, and provide valuable financial advice.
Here’s a guide on how to find the best limited company accountant to suit your needs. Before we discuss how to find a limited company accountant, it's important to understand their role.
The primary role of a limited company accountant is to manage the finances and are responsible for the well-being of the limited company. They take care of:
Above are some of the roles and responsibilities of a limited company accountant. Depending on the services you have chosen for your limited company, their roles and responsibilities may vary.
This brings us to our next point, how much does a limited company accountant charge or what are their fees?
Hiring an accountant for your limited company in the UK is not mandatory but essential for various reasons. Firstly, accountants possess the expertise and knowledge to navigate complex tax laws and regulations, ensuring your business remains compliant with HM Revenue & Customs (HMRC) requirements. This minimises the risk of costly penalties and legal issues. Additionally, an accountant can help you optimise your tax liabilities through effective tax planning, potentially saving you a lot of money.
Accountants provide valuable insights into your business's financial health, assisting with budgeting, forecasting, and cash flow management. Their guidance can help you make informed decisions, allowing your business to grow sustainably. Overall, partnering with a qualified accountant enables you to focus on running your business while ensuring that your financial affairs are in expert hands.
There are two main fee models used by limited company accountants: fixed-fee and variable-fee. Typically, accountants offer at least two to three fixed-fee accounting packages, which usually cover all the essential services your business may need. These packages mostly cover everything you would need for your business. However, if your business has specific or additional requirements, a variable-fee model is advised which is tailor made to match the business requirements.
Limited Company accountancy service fees range from anywhere between £50 per month + VAT to £250 per month + VAT, and sometimes even more. The fee totally depends on the services you choose to avail.
There are thousands of limited company accountancy service providers in the UK, and you may even find accountants charging less than £50 per month, including VAT. This pricing could be due to competition or a lack of experience. However, fees should not be the sole factor in deciding whether to hire a particular accountant. The cheapest accountant may not necessarily be the best or worst option, and vice versa.
Always look for an accountant who has experience of handling limited company businesses. In our opinion, fixed-fee accountants are the best and fees in the range of £90 – £150 per month is quite reasonable. Again, you need to evaluate the services you are getting for the fee.
Now that we have some sort of understand about the fees charged by a limited company accountant, let us look at how to choose the best limited company accountant for your business.
Below are some useful tips to help you find the right accountant:
Qualification & Memberships: This is perhaps one of the most important factors to consider when choosing an accountant for your limited company. Always ensure you hire a qualified accountant. A qualified accountant will be certified by professional bodies such as the Association of Chartered Certified Accountants (ACCA), the Institute of Chartered Accountants in England and Wales (ICAEW), or the Chartered Institute of Management Accountants (CIMA).
Experience: In addition to qualifications, experience is another important factor to consider. You should hire an accountant with experience in handling limited company matters. An experienced accountant can save you both time and money, and they will also be able to advise you on how to reduce your tax liability.
Cost vs Value: Now that qualifications and experience are sorted, find out what fees they charge and what services you receive in return. Compare this with accountants who have similar qualifications and experience, and shortlist the one who charges a lower fee.
Reviews & References: One of the most effective and easiest ways to find a quality accountant is through recommendations and referrals. While referrals aren't always completely reliable—since some accountants offer commissions or rewards for them—they can still be helpful. If a friend, colleague, or fellow business owner recommends an accountant, it could simplify your search. You can also explore online forums, business groups, or directories to find an accountant. Additionally, visit sites like Google and Trustpilot to check their online reviews.
Technology & Tools: In today's world, having access to the latest accounting software and tools is essential, as it makes managing finances much easier. Check if the accountant you're considering uses modern technology, such as cloud accounting software, in-house portals, or mobile applications. Also, find out if you'll have access to accounting platforms like Xero, FreeAgent, QuickBooks, or Sage.
Customer Support: When choosing an accountant in the UK, strong customer support is crucial. A responsive accountant can promptly address your queries and resolve issues, helping you stay compliant with tax deadlines and financial regulations. Good customer support also ensures you receive timely advice, making it easier to manage your limited company’s finances effectively. Inadequate support can lead to delays and costly mistakes.
Once you are satisfied with everything the accountant has to offer, it’s time to meet and interview them. Discuss your requirements and convey your expectations to avoid any future inconveniences. Try to meet them at their office so you can get a sense of their operations.
We sincerely hope that this guide helps you find the best accountant for your limited company. Alternatively, you can also have a look at our trusted and verified limited company accountants.
If you need any help, you can write to us at [email protected] or fill in the request a callback form below and we’ll get in touch with you.