Comprehensive accounting for limited companies
Running a limited company offers significant rewards, but it also brings a specific set of legal and financial responsibilities. Whether you are navigating a period of rapid growth or establishing a new venture in Melton Mowbray, the financial management of your business requires precision.
At Jarvis & Co, we handle the technical complexities of company accounting so you can focus on leadership and strategy. A limited company is a separate legal entity, which protects your personal assets but requires strict adherence to statutory reporting and tax compliance. Our role is to ensure these obligations are met with professional clarity.
Many directors approach us when they realise their initial bookkeeping methods can no longer support an expanding business. We help you establish resilient processes to capture every transaction accurately, from sales invoices to director expense claims.
We use reliable software to ensure your records are organised and accessible at all times. In practice, having a strong foundation makes the transition to year-end accounts much smoother. It also ensures that the data used for your Corporation Tax returns is robust and defensible.
Building robust financial systems
Statutory accounts and Companies House compliance
Every limited company must file statutory accounts with Companies House each year. These documents include your balance sheet, profit and loss account, and the necessary supporting notes.
For micro-entities and small companies, we often file filtered or "filleted" accounts to maintain a level of public privacy. However, full accounts are still required for HMRC and your shareholders. Our team manages this entire process. We handle the adjustments for accruals, prepayments, and depreciation, ensuring the final figures reflect the true state of your business.
Managing and optimising Corporation Tax
Corporation Tax is calculated on your company’s profits after all allowable deductions have been made. With the main rate at 25% for profits over £50,000, and marginal relief available for those below the upper threshold, proactive planning is essential.
We identify legitimate reliefs to reduce your tax liability, such as:
Capital allowances on vehicle and equipment purchases.\
Research and Development (R&D) tax credits for innovation.
Employer pension contributions.
By planning throughout the financial year, we help you retain more profit within the company or distribute it more efficiently to your shareholders.
Payroll and director remuneration
Managing a payroll involves much more than just paying salaries. It requires real-time (RTI) submissions to HMRC, accurate National Insurance calculations, and the management of auto-enrolment pension schemes.
For directors, the goal is often to find the most tax-efficient balance between salary and dividends. We advise on how to utilise your dividend allowance and personal tax thresholds effectively. This oversight ensures you remain compliant with workplace pension regulations while minimising the overall tax burden on your household.
Navigating VAT and the £90,000 threshold
Once your turnover exceeds £90,000, VAT registration is mandatory. However, voluntary registration can sometimes be beneficial even if you are below that limit, particularly if you mainly deal with other VAT-registered businesses.
We assist with the registration process and help you choose the right scheme for your business. This might be the Flat Rate Scheme for simplicity or cash accounting to help manage your cash flow. We prepare and submit your returns, ensuring that VAT becomes a manageable part of your routine rather than a source of stress.
Insights from management accounts
Annual accounts are a look backwards, but management accounts help you look forward. We prepare monthly or quarterly reports that highlight your gross profit margins, overhead trends, and cash flow forecasts.
These reports are designed for internal use and speak directly to the operational reality of your business. Directors use this data to make informed decisions about pricing, cost control, or expanding specific product lines. This level of insight is often the difference between reactive management and proactive growth.
Cash flow and financial health
Even a profitable company can struggle if its cash is tied up in unpaid invoices or seasonal stock. We help you implement better credit control procedures and negotiate improved terms with your suppliers.
Regular cash flow projections are a standard part of our service. These allow you to anticipate periods of high expenditure and plan your reserves accordingly. This proactive approach prevents the need for emergency borrowing and ensures you can always meet your obligations to creditors.
Governance and directors' duties
Directors have a legal duty to act in the best interests of their company. This includes ensuring that dividends are only paid when there are sufficient distributable reserves. Failure to follow these rules can lead to personal liability or fines.
We provide practical guidance on these governance issues. We help you document loans between the company and its directors and ensure all major financial decisions are properly minuted. This ensures your corporate records are as professional as your operations.
Moving to Jarvis & Co
We offer fixed-fee packages for our limited company services, covering everything from annual accounts to payroll. This gives you total transparency over your costs and helps with your internal budgeting.
If you are switching from another firm, we handle the entire handover. We contact your previous accountant for professional clearance and ensure all your historical data is imported correctly. Most transitions are completed within two weeks with minimal involvement from you.
If you would like to discuss how we can support your limited company, please call us on 01664 563993 or email hello@rwjarvis.co.uk.