For startups, there’s no room for accountancy errors

For startups, there’s no room for accountancy errors

When launching a business, it’s inevitable that money will have to be spent. The key to success is understanding exactly what costs are necessary, and what you will get for your money.

Most businesses will need to: acquire or rent office space; purchase day-to-day necessities and computing equipment and fork out on salaries. The first few months for a startup can be incredibly costly, and so entrepreneurs will, of course, want to minimise costs wherever possible.

And, when the time comes to consider what can be regarded as an unnecessary expenditure, some may conclude that they can do without the services of an accountant. They may believe that they can carry out such accountancy-related tasks on their own, or simply leave them be and come back to them later.

However, for all startups, dismissing the importance of an accountant could be incredibly damaging.

Five ways accountants can help

It’s all well and good us saying that accountants are vital, but what exactly do they do to benefit your overall business operation?

1. They keep the books

This is – quite simply – the accountant’s bread and butter. An accountant will ensure that all payments are properly registered, all suppliers are paid on time, and all expenses are credited. This is basic stuff, but it’s also incredibly necessary.

2. They understand your business’ financial status

By working closely with an accountant, you will ensure that a financial expert is fully aware of how your business is operating, whether any changes need to be made, and what parts of the business are the most profitable.

3. They help to manage cash flow

Because accountants are fully aware of how your business will be performing, they will be able to accurately manage cash flow. This means more than simply paying employees on time, which generally consists of setting up an accurate PAYE system; it also means being able to allocate specific sums towards business development, marketing and advertising, without you as the business owner having to fear that the company is going to run out of cash.

4. They will ensure you are legally compliant

This is absolutely key. The last thing a business wants is to make an error or poor decision which ends up financially crippling the company before it has even had a chance to grow and succeed. Staying on the right side of the law is key.

5. The can advise on important decisions

Accountants are far more than just number crunchers. The best accountants will have worked with numerous organisations and will know what decisions are likely to reap dividends, and what moves will not be beneficial. You should lean on their expertise!

 

Interested in finding out more about how we can help your startup to thrive? Get in touch today. We’d love to talk as your local accountant for startups in Manchester.

Photo: Accounting by 401(K) 2013 licensed under Creative commons 5
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