Do I Need to Use an Accountant to Set up a Company?

You don’t legally need an accountant to set up a company in the UK. You can do your own accounting if you wish. Or, if you can afford a professional, they can guide you through the process and ensure everything runs smoothly.

But here’s the problem: accountants are expensive. For a new company especially, this cost can be too high to bear. So, a more suitable option could be to use a company formation agent like 1st Formations. Keep reading to find out how the UK’s best company formation agent can help you benefit from accounting services without breaking the bank.

What an accountant can do for your company

If you’re setting up your very first company and you’re unfamiliar with the process, having an accountant on your team can be advantageous. They can boost your confidence and give you that all-important peace of mind that you’re in good hands.

Here are some of the main tasks an accountant can support you with:

  • Company registration
  • Payroll setup and management (if/when you employ people)
  • File your tax and VAT returns
  • Bookkeeping
  • Setting up your accounting software
  • Filing your annual accounts
  • Submitting your tax returns

Essentially, an accountant can do as much or as little as you need them to. But of course, the more services you require, the pricier they will be. With that in mind, let’s look at why a company formation agent is the better choice.

Why you should use a company formation agent

A company formation agent can do much more than set up your company for you. Here are the main advantages of choosing this option over a traditional accountant.

Affordable

One of the main drawbacks of using an accountant when setting up your company is the high cost. Fees can vary widely between firms, experience, and individual services, but you should expect to pay upwards of £200 if you choose this route.

However, a company formation is far more affordable. Starting at just £52.99, a service like 1st Formations will register your company with Companies House and provide professional guidance throughout the application process for a fraction of the price.

Quick

Accountants tend to have multiple clients at a time and juggle numerous tasks, which can often slow their timescales down. But there’s no need to wait if you choose a company formation agent. They’ll get your company registered in no more than 24 hours, often within three to six.

Easy and transparent

Setting up a company via a company formation agent is far more streamlined than using an accountant. There’s no need to waste time on phone calls or appointments; simply follow a few easy digital steps and let the agent do the rest.

Once you’ve submitted your details, there’s no need to keep calling to check on your application’s progress. Your agent will most likely give you access to a free online management portal where you can view and manage your company online.

Convenient address services

When setting up a company, you’ll need to provide a registered office address at which you’ll receive your official correspondence. If you use an accountant, they’ll normally want that to be their office address.

However, you could risk missing important letters, and when they receive your post, they’re likely to charge extra for forwarding it to you. If you choose a company formation agent to set up your company, they normally include convenient address services that include mail forwarding at no extra cost.

Also, depending on where your agent is based, you’ll also have the added benefit of using a prestigious location that can help your new company appear professional.

Company secretarial services

It’s not just accountants that can help you run your company and ensure it remains compliant. Company formation agents like 1st Formations have dedicated expert teams to assist you with the following:

  • The preparation and filing of your annual confirmation statement
  • Maintenance of your company registers
  • Changing your company’s name
  • Appointing and removing directors
  • Issuing and transferring shares
  • VAT registration

You can choose one-off services as and when you need them or sign up for a complete secretarial service package – whatever your company needs and works best for you.

Summary

An accountant can be highly beneficial when setting up a company for the first time. However, for a new entrepreneur who’s just getting started, it can be a costly, slow, and bureaucratic process.

Instead, company formation agents like 1st Formations are cheaper, quicker, and they offer a range of secretarial and address services to help you run and manage your company easily and complicantly.

Ready to start your company today? Choose the UK’s best company formation agent, 1st Formations. Packages start at just £52.99 and they offer a range of address and secretarial services to help new company owners with admin and compliance. Visit the 1st Formations website and start your company today.

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