Well, you have had an idea, you think you can turn it into a business and even better you can make a profit from it. You’re starting out small so you ask yourself, why do I need an accountant? Surely I am too small to employ the services of an accountant and they are going to cost me money, aren’t they?!
So here is something you should think about!
What business structure should I use?:
One of the most critical decisions you make at the start of your business is about the legal structure. So you don’t want to get it wrong. Your accountant can give you tailored advice depending on your individual circumstances so that you make the best decisions possible.
Legal Requirements:
You must register your business with the Inland Revenue whether it is full time, part time, profitable or not. You also need to consider whether you need to register for PAYE or VAT. If you ignore these or register late you will automatically be liable to penalties. An accountant is a good person to deal with all of that so you can get on with running your new business.
Advice:
When you start up you will soon find out that everyone is an expert on every topic. It is always good to have a second opinion. Your accountant has plenty of experience and advice they can give you. With years of experience they have seen it all before and you can benefit from their experience.
Accounting records:
Keeping proper accounting records is a legal requirement. A good accountant will take the time to understand your needs and recommend a suitable accounting system, it may be a simple spreadsheet, or a full blown accounting system like Sage. They will also take the time to make sure you understand the system and the need for the systems. Get it right and you can save a lot of time, money and trouble.
Cash flow
The most important thing about any business is cash flow. No business, no matter how large or how small, can survive without positive cash flow. You need to be in control of your cash from day one. A good accountant will explain the ways you can keep your cash flow under control.
Financial savings:
It’s true, accountants cost money, but in reality a good accountant will save you money. There are many ways a good accountant can save you money, they can help reduce your tax, VAT and even PAYE. They can also help with the commerciality or running your business from cost cutting to advising on your sales prices.
Many startup business owners think that an accountant will cost them money, quite the opposite, in most cases a good accountant will save your startup business a lot of money and free up your time to concentrate on marketing and expanding your business. Many business owners see accountants as a necessary evil but a good accountant can be a real asset to your business. Take your time to find a good accountant, see more than one and make sure you ask them plenty of questions. Look after them and in return you will be well rewarded!