Limited company bookkeeping

Accurate and up-to-date bookkeeping leads to better business decision making

Bookkeeping for limited companies

For all limited companies, keeping your books accurate and up to date is important.

Through regular bookkeeping, you’ll know how your business is performing financially and you’ll get the information and the insights you need to run your business better.

You’ll know if your profit margin is high enough, if you’re collecting payments from clients fast enough, and if you’re accumulating enough cash in your bank account to meet your obligations to your staff, to your suppliers, and to HMRC.

With the real-time data and analysis provided to you by the Business Bookkeeper, you can monitor your company’s performance using the KPIs which are most important to you. Every month, we’re keeping track of your incomings and outgoings, we’re improving your credit control, we’re helping you manage your cash flow, and we’re running your payroll and workplace pensions schemes for you.

Whatever it is that you want us to do for your business, let us know and we’ll create a bespoke service for your company for a fixed fee every month.

With us, you’ll give you back the extra time you need to run your business better. That’s because we take care of everything from keeping your online accounting platform up to date, reconciling your bank account, and presenting your accountant with a comprehensive end-of-year data pack which allows them to claim against every allowable expense reducing both your company and personal tax bills.

You’ll find everyone at the Business Bookkeeper to be friendly, approachable, and professional committed to helping you make the most out of your business. We’re also there to ensure that your limited company transitions successfully to the new and growing Making Tax Digital system due for further expansion in the coming years. To find out how we can help you, please call us on 020 3137 6565 or send us a message.

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Your Complete Bookkeeping Solution includes

Core Accounting

  • Xero accounting software
  • Paperless expense and receipt app
  • Recording all business bank and credit card transactions
  • Recording purchase invoices, expenses and cash transactions
  • Supplier Statement Reconciliation
  • Completing the bank reconciliation
  • Completion of VAT returns

Management Insights

  • Financial dashboard
  • Management reporting
  • Cash flow forecasting
  • Quarterly business review meeting
  • Budgeting


  • Year End Pack for Accountant
  • Email and telephone support

Optional extras

  • Sales Invoicing
  • Supplier & staff payments
  • Xero accounting software set-up
  • Xero migration service
  • Payroll and auto enrolment
  • Self-Assessment Tax returns
  • CIS service

Optional extras

  • Cash flow forecasting (12 months)
  • Enhanced credit control
  • Scenario planning
  • Xero training
  • Accounts inbox management
  • Annual accounts and corporation tax return
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Interested in our complete bookeeping solution?

If you would like to find out more about how we can help your business then please book a discovery call with our team.

Practical day to day support

How the Business Bookkeeper works with company directors

The core value that any bookkeeper brings to a limited company is to ensure that all of its financial transactions in and out are successfully recorded. The work your bookkeeper does is the basis for your VAT, corporation tax returns, payroll submissions and more, all of which must be kept and prepared to the standard laid down by HMRC and which must be presented to them in full by specified dates.

Despite the best efforts of online accounting software platforms, the only people who can really use online accounting packages well like Xero are accountants, bookkeepers, and people with a financial services or banking background. Asking untrained business owners to keep their own financial records doesn’t work. For a limited company owner, it’s another distraction keeping them away from the important business of finding new customers, keeping existing customers happy, and looking after their staff. Bookkeepers and accountants spend hours (and sometimes days) getting their client’s financial records into order because no-one has shown them how to use these platforms.

As a client of The Business Bookkeeper, each financial business transaction your limited company is involved in is recorded accurately and systematically. We will take this responsibility away from you and your staff removing unnecessary administrative work from you all. Contained within online accounting platforms like Xero are sophisticated monitoring tools which we use to provide bespoke management reports to help you and the senior managers in your business. We’ll help you interpret the meaning of each report and advice you on how to run your company and its finances more efficiently.

Management accounts are not only useful for when you’re apply for funding for your business or you’re looking to attract investors. Having day to day access to key company financial information like monies owed from supplier and to customers, bank balance information, profit and loss, turnover, and balance sheet details is key to decision making – even if you employ no staff currently.

At the end of each financial year, you need to submit your CT600 Corporation Tax to HMRC and Year End Statutory Accounts to Companies House. We present your accountant with a year-end pack containing the information they need to complete year end accounts and we will liaise with them to answer any queries.

Are you VAT registered yet? If not, we’ll be able to tell you as soon as you need to legally apply to HRMC for a VAT account if your turnover begins to grow. If you’re already VAT registered, the work we do will ensure that your VAT returns are submitted correctly and on time to HMRC. We’ll advice you immediately whether you owe VAT, if you’re due a refund, and, in both situations, the amount. We also make sure that every possible invoice which can legally be used to reduce your VAT bill (or increase the refund owed to you) is included on our submission.

If your company employs staff, you know that there’s a lot more to payroll than just paying people. We provide our payroll clients with monthly or weekly payslips, P45s, and P60s all of which we distribute direct to your employees with accurately calculated NI and income tax payments. We submit your payroll returns direct to HMRC as well as advising you on the payment you need to make to HMRC every month. Now that workplace pensions are compulsory, we can calculate your employees’ pension contributions no matter who their pension provider is. For new members of staff, we’ll issue automatic enrolment introduction letters to them on your behalf.

The Business Bookkeeper provides direct service to dozens of limited companies in London and the UK as well as indirectly through supply agreements with partner accounting firms. We’d appreciate the opportunity to find out more about you and your company. To find out how we can help you, please call us on 020 3137 6565 or send us a message.

Frequently Asked Questions

Limited Companies

You need to send limited company accounts once a year to HMRC and to Companies’ House. It’s your responsibility as a director to make sure that they arrive on time and that they’re accurate.

Accurate accounting and bookkeeping for limited companies is more than just making sure that your company doesn’t pay more in tax than it needs to. Limited company accounts are on the public record and what your accounts say about your company’s finances (and whether you file your accounts late or not) has a significant impact on whether you’re able to access commercial loans and other financial products you might want to grow your business or to stabilise cash flow in more difficult times.

Plus, given the way that most shareholding directors pay themselves, accurate recordkeeping is essential for maximising the amount of money you can draw out of your business in dividends – paying yourself this way is much less expensive than being on the standard payroll.

Unlike most accountants who only examine your accounts in time to submit your returns to HMRC and Companies House, the Business Bookkeeper makes sure that your financial recordkeeping is up-to-date and accurate throughout the year.

Not only does this mean that, with the year-end pack we send them, your accountants are working off the highest quality information but it also means that, during the year, you have instant access to the latest financial information and reports about your company.

Bookkeeping for a small business in the UK is essential – get in touch with us and we’ll take care of it for you.

Limited companies pay corporation tax – that’s a tax on your profit. Profit is the amount of money your business turned over less the cost of what you bought in to provide your clients with the goods and services you sell less your other running costs.

Within nine months of the end of your accounting year, you must pay a percentage of your profit over to HMRC.

If your limited company turns over more than VAT threshold, you must also register with HMRC. If you operate from business premises with a rateable value above a certain amount, your company must pay business rates to its local authority.

If you employ staff who are not directors and shareholders, you will be liable for staff wages, Employers’ NI contributions, and workplace pension contributions.

Shareholding directors in limited companies can either pay themselves via the PAYE system, via dividends, or via a mixture of the two.

Most directors pay themselves by paying themselves up to something called the “Secondary Threshold” in PAYE as this does not incur Employers’ NI contributions on their own wages. At this level, HMRC considers that you have “paid in” to the system entitling you to a higher state pension once you’ve passed retirement age. The rest (or most of the rest) is then paid in dividends.

Dividends can only be paid to you from post-tax profit (that is after Corporation Tax has been deducted) and it’s taxed at a much lower rate than income tax. Some directors choose to make sizable contributions to their pensions because of the tax relief available.

Although the difference has narrowed greatly in recent years, shareholding company directors pay less in tax (when Corporation Tax is counted in) than standard employees.

We have three different levels of limited company bookkeeping services. Most of our clients ask us to manage the following when we’re working with them:

  • bank reconciliation,

  • credit control and debt chasing,

  • depreciation journals,

  • director’s loan account management,

  • interest journals,

  • payment of invoices to suppliers in accordance with credit terms,

  • payroll/CIS journal entries,

  • petty cash payment posting and analysis,

  • prepayments and accruals,

  • sales invoice preparation and processing,

  • sales receipts posting and allocation,

  • supplier cheques posting and allocation,

  • supplier direct debit payments posting and allocation,

  • supplier invoice processing, coding, and posting, and

  • VAT return calculation and submission.

We work with the Xero online accounting platform when we’re bookkeeping for our private limited company clients.

If you’re using a different platform or you’re yet to take your bookkeeping online, let us help you make the right choice for you. We recommend and are certified by Xero because of the platform’s ease of use for clients, accountants, and bookkeepers and because of their superior reporting abilities.