Frequently Asked Questions About Accountants for Companies

Who is this guide for?

If you are the owner of a private company, partnership, or nonprofit organization, you have probably heard the same recurring questions over and over again: What exactly does an accountant do? How much does it cost? Is it mandatory to file an annual report? What happens if I miss a deadline?

This guide summarizes the questions our clients at Ben Or Kook ask most frequently — and most importantly, provides clear and direct answers without complicated legal terminology. Whether you are just starting out as a new company or are already in operation and want to better understand the process — you will find practical information here to help you make the right decisions.

The most important thing to know right away: a company is an independent legal entity, and therefore its reporting and tax requirements are completely different from those of a self-employed person or an employee. It is not just a matter of numbers — it affects every business decision you make.

What Exactly is a Company Accountant and Who Needs One?

A company accountant is a profession that deals with managing a company's financial records, tax reporting, and legal compliance. It's not just "someone who arranges accounts" — it's someone who understands the laws, a company's reporting obligations, and the implications of every financial decision.

Relevant to you if:

• You have established a private company or partnership
• You manage an association or non-profit organization
• You employ workers and need to manage payroll and pay slips
• You need to submit financial statements to the Tax Authority or the Ministry of Justice
• You want to understand your actual financial situation, not just "what's left in the account"

In short: if your company is more than just self-employment, you need professional accounting mediation.

How the Process Works with an Accountant — Step by Step

When you come to us at Ben Or Kook for the first time, the process is quite straightforward:

1. Initial Consultation Meeting — We learn about your company, your current situation, and your needs. This is at no cost and without obligation.
2. Understanding Your Situation — We review what documents you have, what documentation already exists, and what reporting obligations apply to you.
3. Service Proposal — We explain exactly what will be done, how much it will cost, and what the outcome will be.
4. Ongoing Management — Each month (or each defined period) you send us documents — invoices, receipts, payments — and we consolidate everything into a report.
5. Annual Report and Tax Filings — Toward the end of the year, we prepare the company's annual report, financial statements, and file taxes with the Tax Authority.
6. Business Consulting — We don't just submit reports; we also explain what the numbers tell us, and where you can save money or improve.

Each step is documented and clear. There are no surprises at the end of the year.

What You Need to Know About Corporate Tax and Reporting

A company pays income tax on its profits. This is different from a self-employed person, who pays tax on their income directly. In a company, profit is calculated as income minus expenses, and every expense must be documented and lawful.

A company must also submit an annual report to the Tax Authority. The report includes financial statements (balance sheet, profit and loss statement), and details of expenses and income. If the company pays dividends to owners, there is additional reporting and tax withholding on that.

One point that is not always clear: just because you own the company does not mean you can deduct any expense you want. An expense will only be recognized if it is related to the company's business activities. Buying a new car for personal use? Not recognized. Buying a computer for an employee? Recognized. This distinction is very important.

If the company engages in transactions subject to VAT, you must also report VAT each period (usually every two months). This is an additional report that must be submitted on time.

Common Mistakes and How to Avoid Them

In years of working with companies, we have seen several recurring mistakes:

• Failure to document expenses — "I remember buying things for the company, but I don't have a receipt." That doesn't count. Documentation is everything. Keep every receipt, invoice, and payslip.
• Mixing personal and business accounts — If you pay company expenses from your own pocket, document it. Don't assume it will "sort itself out."
• Late VAT reporting — VAT filing deadlines are strict. If you are late, there are penalties. This is not something you can "catch up" on later.
• Assumption that an accountant knows everything — If you have done something unusual or are unsure whether something is legal, tell us. Don't wait until the annual report.
• Failure to update filing deadlines — Deadlines change, and the Tax Authority sends notices. If you don't keep track, it's easy to miss deadlines.
• Inaccurate payroll management — If you employ workers, payslips and deductions must be accurate. A payroll error can lead to issues with the National Insurance Institute.

The best way to avoid these mistakes? Work with an accountant from the beginning, not at the end of the year.

When Should You Contact an Accountant — Clear Criteria

If you're considering whether to contact an accountant, here are the criteria:

Contact immediately: If your company was just established, or if you're just starting out. This is the best time to start on the right path. If you employ workers, it's also a legal obligation — you need to manage payroll accurately. If you conduct transactions with VAT, it's usually mandatory. If you're unsure whether you need an annual report or if you're exempt, this is a question an accountant can answer precisely.

Contact in the near future: If you're already in operation but managing things yourself and feel like it's a bit "messy." If you're unsure whether you're paying the correct tax. If you're planning to distribute dividends to owners and don't know how. If you want to understand your actual financial situation.

When it's urgent: If you're behind on any reporting. If you received a letter from the tax authority. If you're planning to take out a loan or attract investment, and banks or investors require updated financial statements.

In short: don't wait for a problem to arise. It's better to speak with an accountant while everything is still under control.

Differences Between Company Types — Why Does It Matter?

Not all companies are the same. There are significant differences in reporting and tax requirements:

Private Limited Company (Ltd.): This is the most common type of company. Company owners are responsible only for their capital invested in the company, not for all their personal assets. You generally need an annual report (unless exempt), VAT reporting if applicable, and an income tax return.

Public Limited Company (Ltd.): If your company trades shares on the stock exchange, the requirements are much stricter. Mandatory audit, periodic reports to the stock exchange, and higher transparency requirements. This is not a common case in our audience, but it's important to mention.

Association (Non-profit Organization): An association is a non-profit organization. It needs an annual report and accounts, but typically not VAT (unless there is business activity). The reporting is different, and the taxation is different.

Partnership or Cooperative Company: In these types of companies, partners pay tax on their share of profit, not the company itself. This is more complex reporting.

The point: the company type determines the requirements. If you're unsure what type of company you are, that's the first question for an accountant.

How Much Does It Cost? What Affects the Price?

A question clients ask frequently is: "How much does it cost?" The honest answer is — it depends.

What affects the price? The size of your company. A small company with a few transactions per month is not the same as a large company with hundreds of transactions. The number of employees — if you employ staff, that adds work in payroll management. The complexity of operations — if you engage in international transactions or complex VAT, that requires more work. Whether you require mandatory audit — large or public companies need an audit, and that costs more.

At Ben Or Cook, we work with a pricing model tailored to your company's size. We do not charge you for services you do not need. The best way to know exactly how much it will cost — is to come in for an initial free consultation meeting. There we will be able to assess your situation precisely.