18 May Why a focus on accounting should be key for all entrepreneurs
Entrepreneurs are, by their very nature, interested in doing things differently. They want to embrace change and commit to tasks that go against the status quo.
However, while this is a common approach for entrepreneurs and those looking to develop and build small businesses, it is absolutely essential that they find time to focus on the simple things that set the foundations of any successful operation.
To that end, embracing professional and accurate accounting processes is absolutely essential.
The right approach from the outset
Even if you have the very best idea, there’s no way it will result in success unless you have adopted the right practices and procedures. At the beginning of a business’s life, every penny counts, and so being able to account for all spend, correctly calculate tax and comprehensively understand profit is vital.
This can only be achieved through accounting.
By having a robust set of accounting procedures, you can ensure that your business is on the right track from the outset. Rather than simply making decisions because you believe they are the adequate ones to make, you can be justified in every outlay because the figures will help you make your decisions.
And, of course, the earlier in the process of launching a business that you adopt high-quality levels of accounting, the better your ability to plan for the long-term.
A means of cutting costs
As mentioned above, every penny counts during a business’s early years. Therefore it is vital to be able to understand what costs can be cut, and what elements are absolutely essential.
Some entrepreneurs may consider hiring an accountant to be an unnecessary expense – especially while the company is very young – but this is rarely the case. In fact, accountants are far more likely to be able to help organisations of all sizes to save money.
By being able to accurately report on tax payments, track outgoings and incomings, ensuring all payments are made at the right time, managing inventory, and helping to make financially beneficial decisions (hiring and purchasing office space, or PAYE payments, for example), accountants can assist in keeping businesses running smoothly.
Without working with an accountant, all manner of financial tasks will be far more complicated than necessary and could eat up valuable time for entrepreneurs. However, working with an accountant will ensure that all processes are done on time, and to a very high standard.
Why not get in touch with SQK Accountancy, the specialists for startups in Manchester, to find out how we can help you?