Can I do my own accounts for a limited company? 

Can I do my own accounts for a limited company, or is it better to leave it to the experts? It’s a question that many business owners ask themselves. While managing your own accounts might seem like a good way to save money, there are a few things to consider before diving in.

In this guide, we’ll break down what limited company accounts are, why they matter, and whether DIY accounting is the right choice for you. From the legal side of things to the potential risks, we’ll help you decide whether you should tackle your accounts on your own or get the experts (like us 😏) involved.

What are limited company accounts and why do they matter?

“Can I do my own accounts for a limited company?” is a question many business owners ask, and understanding what these accounts involve is the first step. 

The main components of these accounts are:

• Profit and loss accounts: how much money you’ve made or lost over the year.
• Balance sheet: what your company owns (assets) and owes (liabilities).
• Cash flow statement: tracks the movement of cash in and out of your business. 

So, why should you care? Well, limited company accounts are not just a boring box to tick. They’re essential for a few key reasons: 

• Tax reporting: they determine your Corporation Tax and VAT. 
• Legal compliance: you’re required to file them with Companies House and HMRC.
• Transparency: they give stakeholders insight into your financial health.

In short, they affect your tax obligations and business credibility, so keeping them accurate is essential. ✅

The legal side of limited company accounting 

When asking, “Can I do my own accounts for a limited company?”, it’s important to know the legal requirements. The law is pretty clear-cut: you’re required to file annual accounts with Companies House and HMRC, and there are strict deadlines to follow: 

1. Your accounts must be submitted within 9 months of your company’s financial year-end.
2. Your Corporation Tax return is due within 12 months.

Missing these deadlines can lead to fines and penalties, and in some cases, further legal action. It’s best to stay on top of them to avoid any unnecessary issues.

Can I do my own accounts for a limited company? 

Yes, you can do your own limited company accounts, but it’s not as simple as just adding up the numbers. It’s legally possible, but it’s not without its challenges.

That said, the type of company you run can make a big difference. For instance, dormant companies, only need to file minimal and straightforward accounts, while smaller companies with low turnover, few transactions, or no employees often find it easier to manage their accounts.

Here are some things to consider:

So, while it’s possible, it’s important to consider whether you have the time and expertise to handle it properly. 🤷🏻‍♀️

Do limited companies need an accountant?  

Hiring an accountant for limited company finances can offer numerous benefits that make the process smoother and more efficient. Here’s why it might be worth considering:

Expertise 

Accountants are tax professionals who understand the complexities of tax laws and filing requirements. They also stay up-to-date with all legal changes regarding limited company taxes, so you can rest easy knowing your business is compliant.

Tax efficiency 

They can spot tax-saving opportunities, deductions, and reliefs that you might miss, potentially saving you money. 🤩

Accuracy 

With an accountant, you reduce the risk of costly errors, ensuring your accounts are accurate and compliant.

Time-saving 

By delegating your accounts, you free up valuable time to focus on growing your business, rather than getting bogged down in paperwork.

Peace of mind 

Accountants handle all things compliance and filing-related, so you don’t have to worry about meeting deadlines or facing penalties. 📅

So, who should handle your accounts?  

When deciding between DIY and using a service like ours, it’s important to weigh the pros and cons. If you’re wondering, “Can I do my own accounts for a limited company?”, here’s a quick comparison:

Taking care of your own accounts might save you a few pounds now, but the risk of mistakes and missed savings could end up costing you more. But, with one of our accountants, you get the accuracy and compliance you need, plus expert support every step of the way.

Is DIY accounting worth it?

You can do your own accounts, but it’s not without its headaches. If you’re short on time or unsure about the details, an accountant can save you the hassle and help keep things on track. It’s all about weighing up the DIY savings against the peace of mind an expert brings!