Are you an entrepreneur who wishes to set up a limited company in the UK or Ireland? To be able to set up a limited company, you need to familiarise yourself with the process of setting up a limited company . You may choose to set up and register a company that is either limited by shares or guarantee.
Limited by shares means you need to register a legal entity that has separate finances from your own. You are, however, free to keep the profits after paying taxes. Limited by guarantee means that while you still need to set up a separate legal entity and have finances that are separate from your own, such businesses have a guarantor. The profits are, however, used for the growth of the company. These are, therefore, “non-profit” making organisations.
Know the basics of bookkeeping
As an entrepreneur, business registration is where your journey begins. Apart from operational issues, one of the most intimidating aspects is accounting. If you want your business to run successfully, it is crucial to keep your accounts or “books” in order all the time. It is, therefore, essential for you as an entrepreneur to familiarise yourself with financial statements and thus be financially informed at all times.
The three primary financial statements about your company are the balance sheet, profit and loss account statement, and cash flow statement. The balance sheet is a compilation of the capital of your company, the assets and liabilities. Familiarising yourself with your financial statements and reconciling your bank account regularly, gives you an exact idea of where you stand with regards to capital. Staying on top of your capital situation will help you maintain good relationships with your suppliers on the one hand and customers on the other.
Hire the services of a reliable accounting firm
Another critical aspect of running a successful venture is submitting and timely payment of tax liabilities. It is prudent accounting practice to set up a separate account for your tax liabilities to remit your taxes on time. While all of this is standard accounting practice, it is no exaggeration to say that it can become quite a nightmare if you are not familiar with accounting practices.
As an entrepreneur, it is always a good idea to opt for a reputed and reliable accounting firm that will handle all your accounting needs for you so that your business runs smoothly. You can thus concentrate on acquiring more business and operational necessities rather than poring over bookkeeping that wakes you up in cold sweat at night!
At MJH Accountancy , we combine a legacy of accounting practice and modern approach to the present-day business needs. We provide a whole range of services, from business advisory to taxation. We specialise in servicing limited start-up companies, small and medium-sized businesses. If you opt for our services, we guarantee a hassle-free and friendly approach to all your business needs. We promise to work alongside you as you move ahead and grow on your entrepreneurship journey.