A Partnership is a relationship or agreement between two people in business. You can be a business owner and co-owner, or just starting up a new enterprise. A partnership is also established when a business owner registers the company as one of ‘limited liability partnership’ (LLP). When a business is registered as an LLP, it has been registered with a legal entity separate from that of the members or business owners to reduce personal exposure to financial risk.
What Are Partnership Accounts?
Business partnerships are popular in certain sectors, including real estate, law firms, and accounting. Personal enterprises can often be set up with this similar structure as well, giving some security to the partners should financial difficulties arise.
Within all business partnership accounts, you often find a ‘nominated partner’. This person tends to be an accountant who will manage your books and tax returns. This is where 6 Wands can help. As your chosen partnership company accountant. We would offer a precise and accurate collection of company accounts as well as our expertise in a full range of accountancy services.
Why Do You Need an Accountant?
For a dedicated accountant that covers services from completion of accounts to partnership tax returns 6 Wands can offer a bespoke and personalised service. We offer our clients support and assistance alongside our professional services for a complete accountancy package.
Accountants can be vital for keeping your business accounts in order. As a business operation, accounts may fall to the side-lines or become messy when you are unsure what records you need to keep or how best to file them.
As a nominated partner, it would be the accountants’ job to manage the day-to-day business accounts, file individual business partner’s tax returns when needed and manage profit and loss accounting. They will also ensure that your business accounts are compliant and fit for purpose.
Records to Keep Within a Partnership
There are a number of records that have to be kept within a partnership. These records must show the sales and takings for the business, partnership purchases and expenses, as well as the balance sheet, profit and loss sheets, and how profit is distributed between partners.
Every year, tax returns must be filed for individuals within the business partnership as well as the businesses balance sheet. A profit and loss sheet will also have the be drawn up for the accounting year. As the accounting partner, this would be in the hands of your accountant.
Every business can have a variety of different records that are used regularly, if not daily. An accountant would have to take these into account and keep records of:
- Payroll Records.
- Invoices and Receipts.
- Electronic Sales Records.
- Anything taken from the business for personal use i.e., petty cash.
- Inventory record of stock on hand.
How To Find the Right Accountant
We understand that when it comes to your business, you may have specific requirements. This can make finding the right accountant to bring into your partnership a daunting task. However, the following steps can help guide your search:
- Look for experienced accountants.
- Ensure you have looked into their case studies for previous work examples.
- Ask them what they are able to offer you and your business.
- Establish what you require from the accountant.
- Contact them online to set up a direct meeting with them.
Something so vital to your business must be done right.
How Can We Help You
If you are in need of an accountant to help with your business partnership, don’t hesitate to contact 6 Wands today via our Contact Form below. We will be more than happy to assist you with your needs and get you and your business on track. We offer an extensive range of services alongside this including bookkeeping, payroll services and VAT/ Tax planning. With an accountant on board to keep all records, this reduces pressure for you as the business owner and makes it easier to keep on top of all the finer details. Contact us today to get started on your partnership accounts.