7 Reasons Start-ups should get an accountant early
Category: Start Ups | Mar 3, 2016
Many start-up businesses can often run into trouble early on because they don’t get the right advice when starting their ventures.
Too early to get an accountant?
But, if start-ups get financial advice quickly, sometimes even before they actually incorporate and begin trading, it can have real benefits both in terms of growth prospects and in improving their cash-flow; informing them of VAT and tax advantages that might otherwise have cost money. In short, getting good advice, early, can make it much more likely that your business will make it out of the first year and become a success.
Here, Beans take a look at the 7 most important reasons for start-ups to get an accountant early.
Having a good accountant to look after all aspects of your finances, from PAYE to VAT, from tax returns to deadlines and registrations, will save you time. Lots of time, because, unless you’re an experienced accountant yourself, things that an accountant can do quickly, might take you a considerably longer time to do. In effect, all the time you save here allows you to concentrate on getting customers and spreading the word about your fantastic new business.
Deal with HMRC
By employing an accountant early on, you make sure that your business won’t fall foul of HMRC. You will be kept informed of your obligations, your deadlines and registration dates. In addition to this, you will be informed of legislation changes that could save you money and time when it comes to VAT and tax. This will enable you to reduce your tax liability and pay as little as is legally possible. It will also ensure that your VAT calculations are correct; avoiding fines and penalties and ensuring that as much of your business’ money as possible goes towards the stock and equipment you need. And back into your pocket in the form of profits.
Having an accountant from the start will remove your tax worries and reduce your stress considerably.
Make the most of your money
Any start-up business will know that at the beginning of your journey, money is likely to be tight.
Business plan & structure
Some businesses fail before they start. It might seem cruel but it’s true. If you don’t have a solid and achievable business plan, your business is doomed.
By securing the services of an accountant with experience helping start-ups to become successful you gain the vital insight of someone who can help you to make sure that your business plan is robust and attainable.
In addition to this your accountant will be able to help you to decide the most profitable way for you to structure your business to begin with. Whether as a limited company, a sole trader or partnership. They will also be able to take care of your incorporation and review all of your application and registration documentation before it’s submitted to make sure it’s correct.
By making sure that you use the right accounting systems from the very beginning, your accountant will save you valuable time and money in the future.
Your accountant can give you advice on how to enter your finances onto a spreadsheet, or whether it would be helpful for you to use some form of online accounting software to keep you up to date.
Help to get funding
Whatever avenue you go down in your search for funding, an accountant will be able to help you.
If you’re applying for a loan or overdraft from the bank then having an accountant will ensure that your application and supporting documentation is all present and correct. They can also help you to answer any questions that your lender may have. Also, having an accountant will show the lender that you’re serious about your business and your business plan and forecasts should be professional and achievable.
Most good accountants will have networks of contacts they will be able to put you in touch with that might be excellent alternatives to the bank when it comes to finding investors and funding.
A second opinion
One of the most under-rated services an accountant can provide to you – and they will often do this bit for free as well.
Since starting out as a new business is – although potentially very rewarding – a bit of minefield, it pays to have access to advice from someone who knows your business inside out but has less of an emotional attachment to it that you do. Honest, objective input, from someone who has dealt with not only your own business, but many others in similar positions can be invaluable.
Come and see us
At Beans we work with a wide variety of start-up businesses and we’re experts when it comes to helping start-ups to avoid the pit-falls they could be faced with and make their ideas into something successful.
Whether your business is B2B or B2C, we can provide you with the help you need to make the most of your money from the early stages of your business and beyond.
There’s no cost and no obligation if you come and see us for a chat to find out more about how we can help you, and the earlier you come to see us, the more money we could save you.
And if you were to decide that we’re the right people to help you with your start-up business, then we can even provide FD support for high-growth businesses too.
If you’re starting a new business, or even thinking of it, why not drop in for a friendly chat and a brew to see what Beans can do for you?
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