Welcome to the LCCS Blog. This is just a very short introduction to tell you a little bit about LCCS, and why this blog is now a thing.
LCCS is an accounting firm for the modern age, aiming to disrupt a very traditional, conservative, old school profession. The accounting profession, especially at the smaller end of the market has historically moved very slowly and been either unwilling or incapable of embracing modern technology.
When I say the smaller end of the market, I mean the firms that service small companies like bootstrapped start-ups, contractor personal service companies and traditional small businesses like tradesmen and mum and dad corner shops. Historically these clients have been serviced by small local firms for whom modern technology means receiving client data on a spreadsheet on a USB stick, rather than hand written in a ledger book.
These clients deserve far better service, using a modern model and at a far more competitive price than they have ever had before. This is what LCCS plans to provide.
The traditional model
Traditionally small local accounting firms have serviced these clients once a year by contacting them to “get the books in”, manually processing the books and preparing accounts and tax returns and then invoicing based on hours worked.
This leaves the client completely in the dark in terms of what their tax bills will be until well after year end and with no idea of what their accounting bill will be until they receive the invoice. Not only this but it means the client neglects their record keeping all year and then has a ghastly stress trying to work out what the earned and what they spend in a year that ended nine months ago.
In a world where Tik Tok can provide 8.7 million videos on how to make beetroot chocolate cake in an instant these clients deserve better.
The LCCS Model
Firstly LCCS charges differently, so there are no surprises. LCCS is a subscription service with a low monthly fee which covers all of the HMRC and Companies House compliance work that a small company is legally required to adhere to. The fee is collected by direct debit each month, so the business owner never even has to give it a thought. Accounting fees are sorted.
Secondly, LCCS believes a well-run limited company needs to be fully aware of its tax situation at all times. And when you are a small company understanding your tax position means not just understanding how much tax the company will need to pay. You also need to know how much you as the owner can take out of the company to fund your life, and how much personal tax you will have to pay on the money you have withdrawn. And you need to know this all throughout the year, not just 9 months after year end when your accountant completes your accounts. This is why LCCS developed the Live Tax Report.
The LCCS Live Tax Report is an unlimited and instant report that tells the company owner how profitable their company is and how much companies tax they are presently liable to pay at tax time. That’s the easy bit, anyone could do that, but for a small company owner it is only half the story. We believe that at present LCCS is unique in the market place in that it also tells the company owner how much money they can afford to take out of the company, how much personal tax they will have to pay on that money, and therefore how much of their earnings they can actually spend. And all of this is provided instantly and on demand.
LCCS achieves this with a very simple form for the owner to fill out, backed by a very complicated algorithm to generate the report. So every time you want to withdraw some money from the company you simply enter a few details about the companies income and expenses as well as a little bit about any non-company related income you may have received personally. The Algorithm does the rest and you are instantly presented with everything you need to know.
LCCS Year End
You’ve heard tax time needn’t be taxing. Well with LCCS its not. Because all of your information has been continuously submitted throughout the year to generate Live Tax Reports, come year end everything is already sorted and there is very little to do. A summary of your submissions for the year is provided and it makes up the basis of your year-end accounts and tax returns. All you have to do is check it over to ensure you are happy and haven’t missed or misstated a submission anywhere. You then provide some simple year end details like how much was in the company bank account and did anyone owe you money or did you owe anyone else money. And that’s it. LCCS prepares your accounts and tax returns, sends them to you for final approval and submits then to HMRC and Companies House. And because you’ve had tax updates all year, and been paying your accounting fees by subscription, there is no nasty surprises with your tax return or your accounting invoice.
So that’s LCCS. What about the blog?
The LCCS Blog
The LCCS blog is a collection of articles written by LCCS to assist limited company owners in getting the most out of their limited company and understanding the rights and responsibilities that come with being a limited company director.
Starting a new company can be daunting. Understanding the legal implications of a limited company structure can be bewildering. Ensuring you don’t pay more than your fair share of tax while also not raising the ire of the taxman can be overwhelming.
The LCCS blog aims to demystify these and other topics related to being a company founder so that you can focus on running your business. Our goal is to make the articles simple enough to understand, short enough to hold your interest but comprehensive enough to provide all of the information you require. We know this is a balancing act and if you feel we have erred one way or the other please tell us in the comments.
If there is a topic you would like covered please specify it in the comments and we’ll do our best to oblige.
Good luck with your limited company journey and happy reading.