Early stage accountancy tips for budding entrepreneurs

Startup Accounting

Early stage accountancy tips for budding entrepreneurs

The SME market is continuing to grow, despite the fact that 50% of start-up businesses will fail in their first year.

Getting your new business off to the right start means taking on board accountancy solutions from the outset. Accounting sits at the very heart of any business, so if you want your start-up to be a success you need to get to grips with good financial management from day one.

Hire an accountant from the outset

Receiving the professional support of an accountant is one of the best ways to give your new business a head start. There are lots of reasons to hire an accountant from the outset, including:

• Your accountant is likely to have years of experience and will be able to offer solid advice about implementing the best financial plans.

• Any potential problems with your accounting methods will be spotted quickly, before potential damage.

• Accountants keep you up to date with current legislation.

• Your accountant can help maximise business potential and spot growth opportunities

Develop good financial skills

It’s equally as important for you to develop your own financial acumen, as you will be responsible for the day-to-day operations of your business. Just some of the things you need to think about when considering start-up accounting include:

• Learning the difference between cash flow and profits

• Having the ability to work out just how much your business is worth

• Gaining adequate accountancy knowledge so you can communicate effectively with professionals, like banks and investors. This will enable you to make more strategic business decisions

• Develop the skills to do your own bookkeeping

• Achieve a firm understanding of the annual accounts and reports to enable monitoring of rivals and competitors

Once you develop key financial skills you will be better placed to keep a watchful eye on your growing business and be able to delegate work requiring higher levels of expertise to your accountants.

Just some of the helpful sources for information on tax legislation and company governance include Companies House and HMRC.

If you’re starting up in the Manchester area, why not get in touch with SQK Accountancy to discuss our affordable support for new business?

No Comments

Sorry, the comment form is closed at this time.