Is running a company really that hard?
If you are new to contracting or are thinking of switching from an Umbrella company you may be considering whether to set up as Limited Company. At first glance this might seem quite a complicated task and the idea of actually running it, from the accounting point of view, can look a bit daunting. However, running a Limited Company is not as difficult as it sounds.
Like anything you’re doing for the first time there will be a few new things to learn, but overall a key point to success is to be well organised and disciplined about keeping your company information updated. It also really helps to have a good contractor accountant. Their expertise is invaluable and will help ensure that you are:
- aware of your tax liabilities
- submitting information on time
- compliant with all relevant tax and Limited Company legislation
The simplicity of online accounting
One way to keep your accounting tasks as simple and quick as possible is to use an accountant with an online accounting system. With an online system it should only take you around 15 minutes each month to upload your latest information which will then go directly to your accountant. Also, online systems make the process even easier by having functions which can upload a CSV file of your business bank statement. This will help reduce the time needed for manual input of your day-to-day business transactions.
Advantages of real time information
Once your information has been uploaded your accountant can view your company’s financial position in real time. The advantage of this is that it helps your accountant to give you timely advice on any tax liabilities due as well as the ability to notify you of any profits available for dividends. This helps you to work more closely with your accountant so they can guide you in taking dividends from your company while making sure there is enough income to cover any liabilities. With their knowledge and experience they can help your company grow.
Advice on personal income
As well as offering guidance on your company accounts your accountant will be able to provide you with personal tax advice. This will make sure that you are also maximising your personal income and are aware of any taxes due.
If you would like to find out more about online contractor accounting services contact us at Intouch Accounting for further information.
This blog has been prepared by Intouch Accounting. While we have made every attempt to ensure that the information contained in this blog has been obtained from reliable sources, Intouch is not responsible for any errors or omissions, or for the results obtained from the use of this information. This blog should not be used as a substitute for consultation with professional accounting advisers. If you have any specific queries, please contact Intouch Accounting.