30 Dec Four tips for start-up and small business accounting
Starting a new business is an exciting time, and undoubtedly there are lots of things to think about. It’s easy to forget about certain areas like accountancy.
If you’re launching a new business and want to make sure nothing gets neglected, read on for our list of four tips for start-up accounting and small business accounting.
1. Separate business from pleasure
Whilst you might be using your own money to launch your start-up, it’s important to separate your business and personal funds. This aids transparency and makes it much easier to manage your accounts. One of the first things you should do when starting your business is to set up a separate, designated business account. Make sure this account is used for all business transactions.
2. Understand the law
You don’t have to become an expert, but it is essential that you have an overview of your legal obligations. Find out about the taxes your business is liable to pay and be aware of what information about income and profit you’ll need to declare. A good awareness of your obligations will make it easier to understand what information you need to record and for how long, making your accountancy operations much smoother.
3. Be vigilant about expenses
Expenses can run high when you’re starting a business, from essential supplies and promotional materials to salaries and catering for meetings. Whether the expense is large or small, be sure you pay with a business account and keep track of the expenditure. If you link your card to an accounting app or software you can automatically record your expenses rather than having to hold onto receipts.
4. Enlist a professional
Accountancy may not be within your skill set, and many new and small businesses cannot afford an in-house accounts department. If this applies to you, outsourcing the work to a specialist in small business accounting could be a solution. SQK Accounting provides comprehensive small business start-up support with accountancy and payroll. We can make your accounting simple so you can concentrate on the areas of the business you’re most passionate about – contact us today.