04 May 3 accounting mistakes to avoid as a new start-up
Starting your own business is an exciting thing and something that will hopefully grow to meet your expectations.
It is not always easy though and you need to do all you can to help it flourish. Looking after your accounts as a new company is prime among this. But what classic mistakes should you avoid in this area?
Mixing personal and business money
A classic start-up accounting mistake many people make is mixing business and personal cash. This normally happens when you do not set up a separate business bank account at the same time you form your new company. Many people will think it is not worth it until they are generating significant revenue figures and use their personal bank account instead. This is not advisable however as it makes separating business income from personal money tricky for accounting purposes.
Trying to handle it alone
The nature of start-ups means you normally only have a small number of workers to begin with – or even just yourself! This can see new business owners trying to handle key areas like small business accounting personally. The problem with this can be that it eats into valuable working time and takes you away from growing your new company. It is also not a great idea if you do not like working with figures, find it hard or do not have time to keep up with the latest changes to legislation by HMRC. It is, therefore, usually a much better idea to outsource your accountancy needs to a professional accountant.
Not thinking about it at all
Any new business owner knows that there are lots to get sorted when establishing a new company. From marketing to HR and more, this can leave you with a lot on your plate. A mistake this can lead to is simply forgetting to think about start-up accounting at all! This can soon come back to bite you though if you miss key financial deadlines or tax returns. It is really important to keep your finances at the front of your mind and plan how to deal with them.
Start-up help from SQK Accountancy
If your new business is based in and around Manchester, why not let SQK Accountancy help? We can look after your small business accounts and give you all the advice needed to help drive future growth. Get in touch today on 0161 706 0444 for more information.