Chart of Accounts Setup for Limited Companies

Starting a limited company means you need proper accounting from day one. Companies House requires you to file annual accounts, and you need to prepare statutory accounts that comply with UK accounting standards. The foundation of all this is your Chart of Accounts—it's the structure that organizes your income, expenses, assets, and liabilities into categories. Get it wrong from the start and you'll spend months (or years) trying to fix it later.

The problem is most new limited companies try to set up their Chart of Accounts themselves, or use default templates from accounting software without customizing them. That's fine if you understand accounting standards and statutory account requirements, but if you don't, you end up with accounts that don't match your business structure, or categories that don't align with how Companies House expects things to be organized.

We handle Chart of Accounts setup specifically for limited companies: designing the account structure, setting up accounting software, organizing income and expense categories, structuring assets and liabilities properly, and making sure everything aligns with statutory account requirements. Whether you're a new limited company in Medway just getting started, an existing company in Maidstone with a messy Chart of Accounts, or a company in Canterbury needing a proper accounting structure, we'll set you up right from the start. No rework, no compliance issues—just a proper Chart of Accounts that makes everything else easier.

What this helps you do (fast)

• Structure your accounts properly — Income, expenses, assets, and liabilities organized into categories that make sense for your business and comply with UK accounting standards. Easy to find things, easy to report.
• Prepare for statutory accounts — Chart of Accounts structure aligns with statutory account requirements. When it's time to prepare annual accounts for Companies House, everything's already in the right place.
• Calculate Corporation Tax accurately — Taxable profit calculations depend on proper categorization. Income and expenses in the right categories mean accurate Corporation Tax calculations.
• Simplify monthly bookkeeping — Clear categories make monthly bookkeeping straightforward. You know where everything goes, and it's consistent month after month.
• Generate accurate financial reports — Profit and loss, balance sheet, cash flow reports all depend on proper Chart of Accounts structure. Get reports that actually make sense.
• Stay compliant with Companies House — Annual accounts filing requires proper structure. Get it right from the start and compliance is straightforward.

How it works

Step-by-step process for Chart of Accounts setup:

1. Discovery call — We chat about your limited company: what type of business you run, what your main income sources are, what your typical expenses are, whether you're VAT registered, if you have employees, what accounting software you're using (or planning to use), and what your current accounting setup looks like (if you have one).
2. Business structure analysis — We review your business to determine the right Chart of Accounts structure:
   • Income categories — How you make money (sales, services, rental income, interest, etc.)
   • Expense categories — What you spend money on (cost of goods sold, operating expenses, admin costs, etc.)
   • Asset categories — What you own (fixed assets, current assets, investments, etc.)
   • Liability categories — What you owe (loans, creditors, accruals, etc.)
   • Equity categories — Share capital, retained earnings, reserves
3. Chart of Accounts design — We design your Chart of Accounts structure:
   • Income accounts — Organized by income type (sales, services, other income)
   • Cost of goods sold — If you sell products, separate COGS accounts
   • Operating expenses — Organized by expense type (rent, utilities, wages, marketing, etc.)
   • Fixed assets — Property, equipment, vehicles, etc. (for depreciation calculations)
   • Current assets — Bank accounts, debtors, stock/inventory, prepayments
   • Current liabilities — Creditors, loans, VAT owed, accruals
   • Long-term liabilities — Long-term loans, leases
   • Equity — Share capital, retained earnings, reserves
4. Accounting software setup — We set up your Chart of Accounts in your accounting software (Xero, QuickBooks, Sage, or whatever you're using):
   • Create all accounts — Set up every account in your Chart of Accounts with proper names and codes
   • Configure account types — Income, expense, asset, liability, equity accounts configured correctly
   • Set up bank accounts — Connect your business bank accounts and configure them properly
   • Configure tax settings — Set up tax codes for VAT (if applicable), Corporation Tax categories
   • Set up financial year — Configure your company's financial year dates (usually April to March, or company incorporation date to anniversary)
5. Testing and validation — We test the Chart of Accounts structure:
   • Test transactions — Enter sample transactions to make sure everything works
   • Check reports — Generate sample reports (profit and loss, balance sheet) to verify structure
   • Validate compliance — Ensure structure aligns with statutory account requirements
6. Training (optional) — If you're handling bookkeeping yourself, we provide training on:
   • How to use the Chart of Accounts — Which accounts to use for different transactions
   • How to categorize expenses — Common expenses and which accounts they belong to
   • How to run reports — Generate financial reports using your Chart of Accounts
   • How to reconcile accounts — Monthly reconciliation using your account structure

The exact structure depends on your business type. A service business needs different accounts than a retail business or a manufacturing business. We'll design it specifically for your company.

We work with whatever accounting software you're using (or planning to use). Cloud accounting (Xero, QuickBooks, Sage) is most common, but we can set up Chart of Accounts in any system. The key is getting the structure right from the start—that's what makes limited company bookkeeping work.

Costs & timelines

Pricing factors:

• Business complexity — Simple service business costs less than complex business with multiple income streams, inventory, fixed assets, etc.
• Accounting software — Some software is easier to set up than others. Cloud accounting (Xero, QuickBooks) is usually straightforward.
• Training needs — If you want training on how to use the Chart of Accounts, that's included. If you want us to handle ongoing bookkeeping, that's separate.

Commonly reported ranges by local providers:

• Chart of Accounts setup (one-off): £200–£500 depending on business complexity
• Accounting software setup: £100–£200 (if we're also setting up the software from scratch)
• Training session (optional): Included in setup, or £150–£300 separately if you need additional training later

Why Chart of Accounts setup costs what it does:

• Foundation-level work—everything else depends on it
• Business-specific design (not just copying a template)
• Software configuration and testing
• Compliance validation (ensuring structure meets statutory requirements)
• Training ensures you actually use it correctly

Timeline: Setup usually takes about 3–5 working days depending on business complexity and whether we're setting up accounting software from scratch. Testing and validation adds a day or two. If you need training, that's usually a 2-hour session after setup is complete.

No hidden fees. Setup price includes Chart of Accounts design, software configuration, testing, and basic training. Ongoing bookkeeping is separate if you want us to handle it.

Kent (UK) focus

We work with limited companies across Kent: new companies in Medway just getting started, existing companies in Maidstone with messy bookkeeping, companies in Canterbury needing proper structure, and businesses throughout the region.

Kent limited companies face the same Companies House deadlines as everyone else—annual accounts must be filed within 9 months of year-end, Confirmation Statement must be filed annually. The difference is when your Chart of Accounts is set up properly from the start, these deadlines aren't stressful. Your accounts are already organized, statutory accounts preparation is straightforward, and compliance is simple.

Common Kent company scenarios:

• New limited companies — Just incorporated, need proper accounting structure from day one
• Existing companies — Been operating but Chart of Accounts is messy or doesn't match business structure
• Service companies — Professional services, consulting, agencies needing proper expense categorization
• Trading companies — Buying and selling products, needing COGS accounts and inventory tracking
• Property companies — Holding or developing property, needing proper asset and rental income structure

Kent company market context:

• Lots of new limited companies incorporating each year (Medway, Maidstone, Canterbury all have active company formations)
• Many existing companies operating with poor bookkeeping structure
• Companies House compliance is mandatory—poor structure makes compliance harder

Remote-first, Kent-focused. We don't need to meet in person (though we can if you prefer), and we understand what Kent limited companies are dealing with. Companies House deadlines, statutory accounts requirements, Corporation Tax calculations—we've helped loads of Kent companies get sorted, and we know how to set up Chart of Accounts that work.

FAQs