Online Accounting for LTD Company
Running a limited company in the UK comes with legal and financial responsibilities, including maintaining accurate accounting records, filing annual accounts with Companies House, and submitting tax returns to HMRC. Traditional accounting methods can be time-consuming and costly, but online accounting offers a modern, efficient, and cost-effective solution.
Why Choose Online Accounting for a UK Ltd Company?
Cost Savings
Traditional accountants can be expensive, especially for small businesses. Online accounting software offers affordable subscription plans, often with scalable pricing as your business grows.
Real-Time Financial Insights
Cloud-based accounting provides up-to-date financial data, allowing you to track cash flow, expenses, and profits in real time.
Automation & Efficiency
Automated features like bank feeds, invoicing, and expense tracking reduce manual data entry and human errors.
HMRC Compliance Made Easy
Most online accounting software integrates with Making Tax Digital (MTD) requirements, ensuring VAT, Corporation Tax, and payroll submissions are accurate and timely.
Secure Cloud Storage
Financial data is stored securely in the cloud, with backups and encryption, reducing the risk of lost paperwork or security breaches.
Accessibility & Collaboration
Access your accounts from anywhere, anytime, and collaborate with your accountant or team members seamlessly.
Key Features of Online Accounting Software for Ltd Companies
When choosing accounting software for your UK Ltd company, look for these essential features:
Invoicing & Payment Processing
- Create and send professional invoices
- Accept online payments via Stripe, PayPal, or GoCardless
- Automated payment reminders
Expense Tracking & Receipt Capture
- Upload receipts via mobile app
- Categorise expenses for tax deductions
- Link to business bank accounts
Bank Reconciliation
- Automatic bank feeds (Open Banking integration)
- Match transactions with invoices and expenses
VAT & Tax Management
- MTD-compliant VAT submissions
- Corporation Tax calculations
- Self-Assessment support for directors
Payroll Integration
- Auto-enrolment pension compliance
- PAYE and National Insurance calculations
- Payslip generation
Financial Reporting
- Profit & Loss (P&L) statements
- Balance sheets
- Cash flow forecasts
Multi-Currency Support
- Essential for businesses trading internationally
Accountant Access
- Grant your accountant secure access for year-end reviews
Setting Up Online Accounting for Your Ltd Company
Choose the Right Software
Popular options in the UK include:
- Xero – Best for scalability and integrations
- QuickBooks Online – Great for small businesses
- FreeAgent – Ideal for freelancers and small Ltd companies
- Sage Business Cloud Accounting – Strong for compliance
Register for HMRC Services
- Corporation Tax – Register within 3 months of incorporation
- VAT – Required if turnover exceeds £90,000 (or voluntarily)
- Payroll – If you have employees
Connect Your Business Bank Account
Enable bank feeds to automate transaction imports.
Set Up Invoicing & Expense Tracking
- Customise invoice templates with your logo
- Set up recurring invoices for regular clients
- Use mobile apps to snap and store receipts
Configure Tax Settings
- Input your VAT scheme (Flat Rate, Standard, or Cash Accounting)
- Set up Corporation Tax deadlines
Automate Reports & Deadlines
Schedule monthly financial reports and tax reminders.
Compliance for UK Ltd Companies
Annual Accounts & Confirmation Statement
- File annual accounts with Companies House (deadline: 9 months after year-end)
- Submit a Confirmation Statement yearly (even if no changes)
Corporation Tax
- Pay within 9 months and 1 day after your accounting period ends
- File a CT600 return with HMRC
VAT Returns (if registered)
- Submit quarterly via MTD-compatible software
- Pay VAT owed within 1 month and 7 days of period end
Payroll & PAYE
- Report salaries via RTI (Real Time Information)
- Handle auto-enrolment pensions
Self-Assessment for Directors
- Directors must file personal tax returns if taking dividends or salary