Limited Company bookkeeping and invoicing — simple and reliable

Running a Limited Company comes with more statutory obligations than lighter business structures. Administrative responsibilities include maintaining proper bookkeeping, filing tax returns, preparing annual accounts, and meeting other regulatory requirements. For this reason, some sole operators find the Limited Company structure more demanding.

That said, administrative responsibility doesn’t mean you have to handle everything yourself. With UKKO Entrepreneur, we take care of registering your Limited Company or switching from your current accounting firm, bookkeeping, tax returns, profit and loss statements, and annual accounts. You add your company’s income and expenses to the service, and our financial experts make sure everything is handled correctly.

You also get access to an easy invoicing tool, an up-to-date view of your company’s finances, and expert customer support. The service runs on a fixed monthly fee, so you always know exactly what managing your company costs — and you can focus on running your business.

A Limited Company is legally required to maintain double-entry bookkeeping and prepare annual accounts. Double-entry bookkeeping means that every transaction is recorded in two accounts: the debit side and the credit side. The debit side shows where the money goes, and the credit side shows where it comes from. The amounts on both sides always balance, keeping the company’s finances accurate and easy to monitor.

Double-entry bookkeeping enables precise financial tracking as well as the preparation of annual accounts and tax returns. It is mandatory for Limited Companies.

With UKKO Entrepreneur, your Limited Company’s double-entry bookkeeping is handled on your behalf on a cash basis — meaning transactions are recorded according to the date of payment. All you need to do is add your company’s income and expenses to the service, and we take care of the bookkeeping, annual accounts, and regulatory filings.

A Limited Company owner can withdraw income from the business either as salary or as dividends. Paying a salary requires payroll processing, handling employer side costs, and filing reports with the Incomes Register, whereas dividend distribution is based on approved annual accounts and a company decision to distribute profit.

With UKKO Entrepreneur, payroll processing for business owners is included in the monthly fee. You submit a payroll request through the service, and we handle the payroll calculation and file the necessary reports with the Incomes Register. You also receive guidance on paying employer side costs.

Dividend distribution is also straightforward through the service. Once your annual accounts are ready, you decide whether to distribute dividends, after which we finalise the accounts in line with your decision and take care of all the necessary regulatory filings.

A Limited Company always has a bookkeeping obligation. This means the company must maintain double-entry bookkeeping of all its business transactions and prepare annual accounts for every financial year.

Bookkeeping requires the systematic recording of income, expenses, assets, and liabilities based on supporting documents. This obligation applies to all Limited Companies regardless of the scale of their operations or the volume of business activity.

Bookkeeping for a small Limited Company comes with certain simplifications compared to larger businesses. A company is considered small if, in both the completed financial year and the immediately preceding one, it exceeds no more than one of the following thresholds: a balance sheet total of €7.5 million, net turnover of €15 million, or an average of 50 employees.

A small company may use simplified income statement and balance sheet formats, and is only required to include a reduced set of notes in its annual accounts. A cash flow statement is generally not required, and a board of directors’ report is not typically expected from a small company either.

An auditor can be waived under certain conditions, provided the company falls below the thresholds set out in the Auditing Act and neither the articles of association nor any other specific regulation requires the appointment of an auditor.

Yes, a Limited Company’s bookkeeping can be handled by the owner, as there is no legal requirement to use an external accountant.

However, managing bookkeeping does require a solid understanding of accounting legislation, a reliable accounting software, and sufficient time and attention to detail. The board of directors of a Limited Company is always responsible for ensuring that the bookkeeping is handled properly and that all statutory obligations are met.

Errors in bookkeeping can lead to financial consequences, such as tax-related penalties.

There are some key differences between bookkeeping for a Private Trader and a Limited Company. A Private Trader can, under certain conditions, use single-entry bookkeeping, whereas a Limited Company is always required to maintain double-entry bookkeeping regardless of turnover.

A Limited Company must prepare annual accounts for every financial year and file them with the Trade Register. For a Private Trader, the requirement to prepare annual accounts depends on the scale of operations and the grounds for the bookkeeping obligation.

There are also differences in how income is withdrawn. A Private Trader can make private withdrawals from the business, whereas in a Limited Company the owner can draw income as salary or dividends in accordance with the company’s decisions.

Limited Company bookkeeping is an ongoing process throughout the financial year. Cash transactions are recorded daily, and other business transactions are typically recorded monthly.

VAT returns are usually filed monthly (depending on the company’s tax period), and annual accounts must be prepared once a year within four months of the end of the financial year.