The Role Of An Accountant In A Company In The UK

The role of an accountant in a company in the UK, as well as in any other place, goes beyond simply recording invoices and preparing balance sheets.

The accountant is responsible for tax planning, financial management, resource optimisation, as well as ensuring compliance with the relevant accounting and tax obligations.

Although the general accounting plans of each country follow common principles, they contain significant differences.

For this reason, it is very important to have an accountant who is an expert in the regulations that apply in the United Kingdom

Application of applicable regulations to a company in the UK
Complying the tax obligations of a company in the UK
Financial accounting management and management accounting
Financial strategy planning
Treasury management
Accounting software for companies in the UK
Conclusion

1 Application of Applicable Regulations To A Company In The UK

In the United Kingdom, it is required that companies maintain accurate and detailed accounting record. Larger companies are even obligated to undergo external audits.

The accountant ensures that the company complies with the current accounting regulations, such as UK GAAP (Generally Accepted Accounting Principles).

2 Complying The Tax Obligations Of A Company In The UK

A good accountant will ensure that all tax requirements imposed by HM Revenue & Customs (HMRC) are met, thus avoiding any legal issues.

The main aspects that it has to manage in this sense are:

Corporation Tax declaration. Is the tax paid by the company in the UK on its profits.

VAT declaration. A tax on goods and services, collected by businesses for HMRC.

Management of PAYE (Pay As You Earn) and National Insurance Contributions. The tax and social security contribution system for companies with employees.

3 Financial Accounting Management And Management Accounting

This is the best-known mission of the accountant and the success of the company largely depends on the accountant’s good performance.

The tasks related to financial accounting refer to the preparation of the balance sheet, the profit and loss account or the cash flow statement.

These documents reflect the financial state of the company, that is to say, its level of profitability and solvency.

They are necessary for determining business strategy and they are used to prepare the annual accounts. Annual Accounts.

On the other hand, management accounting deals with the planning and internal control of the company.

That is to say, it evaluates the performance of different areas of the business and supervises the objectives set.

4 Financial Strategy Planning

For all the reasons explained in the previous section, accountants play a fundamental role in the decision-making process of company management.

They can also design tax structures that enable companies to legally save on tax costs. Besides, they evaluate investment opportunities from a financial point of view.

5 Treasury Management

This is a critical aspect in the administration of a company. By monitoring cash flow, the accountant ensures that an optimal level of liquidity is maintained.

6 Accounting Software For Companies In The UK

Equally important is knowing all the specialised software that are most suitable for accounting.

Some of the most commonly used tools by companies in the UK to carry out this task are Xero, QuickBooks, or Sage 50cloud.

7 Conclusion

Accounting is not something that can be excluded from any company; on the contrary, it is inherent to it.

For this reason, even if your company in the UK is modest in size and does not have the financial resources to hire an in-house accountant, it is imperative to use accounting services from an external advisor.