18 Mar Getting small business accounting right from the start
Accounting is an essential part of any business. Ensuring that your cashflow, expenses, and company capital are all recorded accurately is necessary both for understanding how your business is working, as well as for HMRC and filing your tax return.
However, many people who set up businesses are not accountants and have little knowledge or interest in bookkeeping. Since these are such necessities, it’s important to get your small business accounting right from day one.
1. Make sure you understand the basics
While you may have no interest in learning how to complete your business accounts yourself, it is essential that you understand the basics of your accounts. Knowing how your cashflow impacts daily trading, and whether you need to worry about things like VAT or CIS is essential, so take the time and effort to learn the basics. If you have a good accountant then they will often take you through the essentials, and they should always be on-hand to help.
2. Outsource from the start
If you know from day one that you don’t want the hassle of doing the company accounts, then it’s important to choose a good accountancy firm from the start. Discuss your needs with different companies before settling on one accountancy firm, and make sure that you can see yourself building a long term relationship with them. Company accounting is best done when the accountant understands the history and development of the firm, so sticking with one company is often best.
3. Understand how your business might grow
The accountancy needs of your company are likely to change in the future. Businesses grow, expand, and diversify, and this means they might need different accountancy skills as this happens. Discuss with your accountancy firm how you see your small business developing, so they can advise you on how they can help your business grow.
At SQKaccountacy, we pride ourselves on helping small businesses with all their accountancy, bookkeeping and payroll needs. Our expert staff have helped businesses from all different sectors, so for more information about how we can help. If you need further support with your business, then please get in touch.