14 Jun Why does my UK tech startup need professional accountants?
Starting a business in the competitive UK tech market means staying on track with all the latest innovations within your field. One vital consideration for any UK tech startup is accountancy and ensuring the business is up-to-speed with all legal obligations relating to payroll, PAYE, National Insurance, and VAT.
Why is professional accountancy important for tech startups?
The reason accountancy issues are so vital for tech businesses is due to the fact these sort of startups can scale very, very quickly. This makes it important to ensure all workers are paid on time and deductions are correct, that all VAT and PAYE returns are filed by due dates, and that business accounts can be manipulated at all times in order to provide accurate financial health, sales and profits check and forecasting function.
Other benefits of using an accountant for your tech startup
Starting up any business is never easy, there’s a substantial knowledge base which needs to be understood and actioned in any business. This includes tax breaks available to the self-employed, and business taxation benefits which can be very advantageous for owners and employees.
Additionally, scaling your tech startup will mean additional funding is required, very often business growth funds aren’t readily available from the cash flow generated by the startup. This is particularly true if you need to invest in new equipment, programming solutions, or take on a number of additional employees. Your accountant will be able to help you source the funding needed to grow the business, and it’s not always essential to opt for expensive loan funding.
The government’s Seed Enterprise Investment Scheme (SEIS) and R&D tax credits can often provide the required cash boost for startups and growing tech businesses. You can find out more about these forms of funding on the UK government website (insert links https://www.gov.uk/guidance/venture-capital-schemes-apply-to-use-the-seed-enterprise-investment-scheme and https://www.gov.uk/guidance/corporation-tax-research-and-development-rd-relief). You could be surprised at just how simple it can be to qualify tech businesses for R&D tax credits! Your accountant will be able to tell you more.
If you’re planning a tech startup or in the process of scaling your existing business, get in touch with SQK Accountancy to discover all the ways our cloud-based accounting and professional advice can assist you.