Best book on running a Limited Company?

[Cloud]

I'm looking for a book that will help and advise with running a limited company. Are there any out there that you can suggest?

I have an accountant, but wish to have a handy book for my own homework.

So far, I've found this: How to Run a Limited Company, by H M Williams Chartered Accountants, but no reviews on Amazon.




Thanks in advance.

 

[Tom McClelland]

I'm looking for a book that will help and advise with running a limited company. Are there any out there that you can suggest?

I have an accountant, but wish to have a handy book for my own homework.

So far, I've found this: How to Run a Limited Company, by H M Williams Chartered Accountants, but no reviews on Amazon.




Thanks in advance.

If the book is about how to manage a business effectively it may have its uses. If it is about how to satisfy statutory and regulatory requirements I'd have serious doubts about its value.

The difficulty would be keeping up to date with all the requirements. The book would need annual updates. Accountants train for years to be able to offer their services, and they work constantly to remain up to date with changing statutory requirements surrounding taxation and reporting. Letting their accountant get on with that allows business owners/managers to concentrate on running their businesses, not on gaining arcane knowledge that they need once a year with serious consequences if they make a mistake.

 

[Cloud]

If the book is about how to manage a business effectively it may have its uses. If it is about how to satisfy statutory and regulatory requirements I'd have serious doubts about its value.

The difficulty would be keeping up to date with all the requirements. The book would need annual updates. Accountants train for years to be able to offer their services, and they work constantly to remain up to date with changing statutory requirements surrounding taxation and reporting. Letting their accountant get on with that allows business owners/managers to concentrate on running their businesses, not on gaining arcane knowledge that they need once a year with serious consequences if they make a mistake.

Thanks for your post Tom.

I fully understand the importance of the accountants role, bringing their full expertise and knowledge to the table.

I've no intention of outsmarting the accountant or even taking over the role - I'm just after a book for my own knowledge of running a limited company, which I have little of so far.

 

[Dawg]

A decent source (book) would allow a company director of limited experience to know what were the right sort of questions to ask/areas to focus on. This surely would save his/her time and that of the accountant?
As to only addressing accountancy/tax/compliance matters once a year...I wish.

But, sorry, no suggestions, apart from suggesting you use the web rather than a book because of updates (in the basics, not the arcane or recondite).

 

[KM-Tiger]

I've no intention of outsmarting the accountant or even taking over the role - I'm just after a book for my own knowledge of running a limited company, which I have little of so far.

And very wise too. The more informed you are the better the discussion you can have with professional advisors.

And worth remembering that advisors (including accountants) are exactly that. They advise, but you must make the decisions, sign the documents etc.

Don't know of a good book, but as Dawg says much available on the web. And if you stick around here there is much to be gleaned if you sort the wheat from the chaff.

 

[elaine@cheapaccounting]

Can I clarify - do you want to know about the accounts/tax or about running a business?

 

[sanjiv]

Not a book but the HMRC website is very resourceful.

 

[MyAccountantOnline]

I'm looking for a book that will help and advise with running a limited company. Are there any out there that you can suggest?

I have an accountant, but wish to have a handy book for my own homework.

So far, I've found this: How to Run a Limited Company, by H M Williams Chartered Accountants, but no reviews on Amazon.

Thanks in advance.

You could try this - http://www.companieshouse.gov.uk/about/guidance.shtml

This is also quite a good book - http://www.lexisnexis.co.uk/store/u...h&catId=ukcat36&prodId=ukprod9780754539087TG6 but bear in mind you need to buy it each year as the tax laws etc change each year.

 

[Cloud]

Thanks for all the help/suggestions/advice everyone.

And very wise too.

And worth remembering that advisors (including accountants) are exactly that. They advise, but you must make the decisions, sign the documents etc.

That's exactly it.

Can I clarify - do you want to know about the accounts/tax or about running a business?

Just about accounts/tax - basically. I fully understand all the in's and out's of running a business under a Sole Trader, but have no understanding of running a business through a limited company - how the shares/dividends system works, corporation tax, return dates etc.

The numbers are not too important for me, just how everything works really.

You could try this - http://www.companieshouse.gov.uk/about/guidance.shtml

This is also quite a good book - http://www.lexisnexis.co.uk/store/uk...80754539087TG6 but bear in mind you need to buy it each year as the tax laws etc change each year.

Many thanks Nicola, I'll check that book out.

 

[MyAccountantOnline]

Many thanks Nicola, I'll check that book out.

The book I mentioned isnt solely limited company accounts and tax but the chapters it has are pretty good

 

[elaine@cheapaccounting]

OK - have a read of this for a simple getting started guide ....

ESSENTIAL FREE GUIDE Limited Company - Do you know what you're getting into?



http://www.cheapaccounting.co.uk/mailsltdcoguide.pdf

Then maybe asks some specific questions and we can answer them.

Find out just enough to understand the ins and outs but don't make a career out of accounting.

 

[Cloud]

OK - have a read of this for a simple getting started guide ....

ESSENTIAL FREE GUIDE Limited Company – Do you know what you’re getting into?



http://www.cheapaccounting.co.uk/mailsltdcoguide.pdf

Then maybe asks some specific questions and we can answer them.

Find out just enough to understand the ins and outs but don't make a career out of accounting.

Thank you very much for that Elaine - very insightful!

I'm hoping the advantages will be worth it, but wow, seems a LOT more complicated than running a Sole Trader business.

 

[Cloud]

Just a quick question regarding corporation tax.

Must this be kept within the account at all times? I enjoy the benefit of running a Sole Trader account, which allows you to "dip" into any savings prepared for tax etc, especially for investments within the business, which are always paid back ready for any tax payments due.

With a Limited Company, it appears that any corporation tax that will be due must be kept within the bank account at all times - and if this money was to be touched (even if paid back ready for the tax payment), it would be unlawful. Ouch.

 

[elaine@cheapaccounting]

well it is and it isn't !!! That's an accountant's answer for you.

The business itself it the same and you know how to do that.

As I said - get an rough understanding of the accounting but get a good accountant on board.

If the limited company can't afford that then it may not have been the right decision to go limited (tax wise - of course you may have gone limited for other reasons).

Communication is key with an accountant - get one you can 'understand'!

Good luck and happy to help on the accounting side of course.

 

[Tom McClelland]

Just a quick question regarding corporation tax.

Must this be kept within the account at all times? I enjoy the benefit of running a Sole Trader account, which allows you to "dip" into any savings prepared for tax etc, especially for investments within the business, which are always paid back ready for any tax payments due.

With a Limited Company, it appears that any corporation tax that will be due must be kept within the bank account at all times - and if this money was to be touched (even if paid back ready for the tax payment), it would be unlawful. Ouch.

The money "set aside" for CT can be used for any normal legitimate business purpose. Clearly managing your cashflow so that when your CT bill comes due the company can afford it is up to you.

What you're thinking of is the fact that dividends to shareholders can only be paid out of cumulative net profits, after a provision for CT has been made. In very small simple "consultancy" companies that don't have any stock or fixed assets or debtors that rule can amount to saying the same thing as "you can't touch the CT money", but in trading companies it isn't the same thing at all.

 

[Cloud]

The money "set aside" for CT can be used for any normal legitimate business purpose. Clearly managing your cashflow so that when your CT bill comes due the company can afford it is up to you.

What you're thinking of is the fact that dividends to shareholders can only be paid out of cumulative net profits, after a provision for CT has been made. In very small simple "consultancy" companies that don't have any stock or fixed assets or debtors that rule can amount to saying the same thing as "you can't touch the CT money", but in trading companies it isn't the same thing at all.

Thanks for clarifying that Tom - much appreciated.

Just to confirm, so any money set aside for CT can be used for business expenses, but not for PAYE/Dividends (understandable).

 

[elaine@cheapaccounting]

It can be used for PAYE

Divs can only be paid out of retained profits (generally making a provision for CT)

 

[KM-Tiger]

Just to confirm, so any money set aside for CT can be used for business expenses, but not for PAYE/Dividends (understandable).

To give you a non-accountant (and rather cavalier) answer to that - do what you wish provided the company can meet its obligations when they arise.

Some run their Ltd Co's like they were a sole trader, drawing cash as they need and let their accountant sort out at year end whether those cash withdrawals were salary, dividends or DLA drawdown.

That's all hunky dory while the company is cash positive, obligations are met and the year end accounts balance.

Two big buts:

• Some accountants are not happy about that method. It's a bit of a grey area so tread carefully.
• You must understand the risk that if your drawings cannot properly be accounted for you will have to pay them back. Preferably always have the means to do so. Things can go pear shaped rapidly and unexpectedly.

 

[elaine@cheapaccounting]

Two big buts:

• Some accountants are not happy about that method. It's a bit of a grey area so tread carefully.

Less about the accountant - more about HMRC not being happy