02 Jul How to manage start-up funding
A lack of capital is often a death knell for small businesses, which makes it more important than ever to keep on top of your finances.
Simple mistakes could prevent you from getting the income and support you need to survive. Here are just a few tips to help your up-and-coming business stay on the path it needs to be.
1. Hire an accountant
We’ve spoken before on the importance of an accountant, even if you’re only a small business. The simple truth is that an accountant doing the job frees up more time for you to work on the rest of your company and can reduce the risk of human errors arising during bookkeeping.
2. Separate your accounts
Plenty of people start out using their own bank account to set up their business, but it is surprisingly common for them to continue to do this and not set up a company account. The best way to see how much revenue you’re making and plan accordingly is to have a business account. If you want to be a limited company, then this becomes a legal requirement.
3. Keep track of all taxes
It might be difficult to factor tax into everything, but it has to be done so you have a full picture of how much everything will cost. For example, if you need something imported, you will most likely need to pay an import tax, and this can add up. If an alternative exists that is cheaper (and closer) without compromising on quality, use it.
4. Be gentle but firm with customers
Goodwill goes a long way towards getting repeat customers, and this is a great way of getting some stability into your regular income. However, this does not mean being too lenient; if they have an invoice that they need to pay, then there is nothing wrong with chasing this up.
At SQK Accountancy, we help businesses of any size survive and thrive in a fiercely competitive market. If you need help with start-up accounting or more advice on how to keep your company afloat, then please send us a message.