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April 29th 2014 / BY: Wisteria

Why appoint a business accountant in London after setting up a company?

There are a number of reasons why appointing a business accountant in London is advantageous to any new company formation. This article will outline some of the key benefits that they can provide to new business owners after they register a company.

The most obvious benefit that they provide is that they help you to implement the necessary accounting and bookkeeping systems within the business to make the compilation of the year-end accounts as straightforward as possible. A failure to keep track of transactions in the proper way on a day to day basis can lead to higher costs and more difficulties when the time comes to submit true and fair accounts to Companies House.

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A business accountant will be able to explain the opportunities for tax planning that can be utilised as soon as the company has been formed which can be financially beneficial for the future. An example of this is paying the directors in the form of a dividend instead of a salary as this is more tax efficient and results in a lower income tax liability.

An excellent business accountant in London will also be able to provide strategic advice to start ups and early stage businesses and this is an invaluable tool to make use of. They will have a great deal of experience of the pitfalls of starting a new business and can provide advice as to how to avoid them. Given the amount of start-up businesses that fail, having an accountant who can also provide guidance is a necessity.

It is a quick and simple process to form a limited company and because of this, many new business owners don’t fully consider all of the obligations that come with running a limited company. A business accountant in London will be able to make you aware of any upcoming deadlines and will be able to assist you in fulfilling the requirements to prevent you from incurring any penalties, be it from Companies House or HMRC.

A top quality business accountant in London will have a network of connections that they will be able to introduce you to in order to assist the running of your business. Examples of these include bankers, lawyers and also potential investors. Having access to these connections saves you the time of having to search for them yourself and will also give you the peace of mind that if they have been recommended by a first-rate business accountant in London then they are very likely to be reputable contacts.

Any new company formation should have a business plan in place. This can be used to assist in raising funds for the business if necessary and also to act as an on-going tool to assist in running the business. Even if the business is making profit, poor cashflow can cause the business problems and an updated business tool developed by a business accountant can prevent the business falling into difficulties.

For further information and advice regarding our accountancy services please call us on 0844 893 0808 or send an email to info@wisteria.co.uk.