There are many parts to a company. When you start a company formation UK, you have to make sure that not only make sure that you register the company with the Companies House and make sure that all of your shareholders and directors are chosen. But you have to make sure that you have someone on board to help with your bookkeeping. One of the fastest ways to lose control of your company is improper bookkeeping.
If you are a new company owner, you should read up on what duties and responsibilities you want your bookkeeper to have. A bookkeeper is going to have access to all of your accounts including bank accounts so make sure that you have a job description in writing. As a guideline, you should make sure that you cover the basics at least.
A bookkeeper's job is to provide payroll services. Some companies choose a payroll service but most companies these days keep their payroll in house. This may sound easy enough but there is more to payroll than just keeping track of employee hours and producing a paycheck. There is the payroll to each employee and director every week or every two weeks. Then you have the PAYE, sick pay, holiday pay, vacation pay, nation insurance, maternity leave pay if necessary and if a worker becomes injured while on the job.
Company formation UK bookkeepers are also required to complete statutory forms that will include the end of the year returns that will go to both the employees and the Inland Revenue. There will also be bonuses, staff costs, ex-gratis, severance pay and the pensions.
Then you will have the duties of registering and complying with the Value Added Tax or Vat. This is a tricky one, the requirements are strict and sometimes they are hard to understand so companies often pay to much or too little. A Bookkeeper should understand how to configure the VAT or they may know where they can enlist help. A good bookkeeper knows their job and they know how to get it done.
If you are a company that works with overseas companies, a bookkeeper who is knowledgeable in overseas tax laws and setting up procedures to help work with the Euro and other foreign currency. There is so much that goes into becoming a bookkeeper that it may not be a job for just one person. You may want to consider hiring a team. You have to remember that there is also Corporate Tax Planning, Audit Services if necessary and even Shareholder Profits. The person or people you hire should be well versed in all of these things. A good bookkeeper makes for a successful business.