If you’ve decided to make your dreams a reality with your start-up, you likely realize that there are many logistics involved in running your business. How do you prioritize your efforts and money? How do you decide if you should do something yourself,or if you should outsource the task?
How well you can perform this balancing act will depend on you. There are certain core principles that every start-up needs to consider. Financial management is one of these core principles. For many entrepreneurs, finance and accounting take a backseat in business decisions, but what differentiates a successful venture from those that fail is the knowledge of finance and accounting.
We’ve prepared a list of five reasons why you should consider enlisting the support of a professional accountant to help your start-up get off the ground and run its operations smoothly.
There are several software systems and tools that can assist you with your basic record keeping, especially in the early stages. As your business grows and your day-to-day transactions increase your bookkeeping demands will also increase. When the amount of time that you are spending on your booking affects your ability to manage your business operations effectively, it will be worthwhile to invest in professional support.
A detailed budget can help you predict how much money will come and go from your business over a period of time (usually a year). Some of the information that you can gain from a budget includes: how much it will cost to start up, whether you’ll need to borrow money, your break-even point, what you need to charge customers, and if you can afford staff.
It is essential for you as a small business owner to have efficient tax planning in order to minimize your tax liability. Through strategic tax management, you can create a smooth cash flow, which will enable the growth and expansion of your business. Depending on the size of your business and the number of employees, you will be liable for several different types of taxes, such as income tax, national insurance, corporations’ tax, VAT, and business rates. A trained accountant will be able to help you calculate your various tax commitments.
It is recommended that you keep records for at least 22 months after the end of the tax year. Keeping the old tax records helps with the preparation of the latest tax returns, preparation of financial statements, tracking deductible expenses, and monitoring the progress of your business, among other things. To do this, practice strong bookkeeping habits on a weekly, quarterly, and yearly basis.
Regulation and compliance
As a private company, under regulatory requirements, you need to file your accounts and reports within a designated time frame. These reports need to be prepared and signed by a professional accountant in order to be considered compliant.
In short, the support of a professional account can be a huge asset to your start-up, helping you streamline your efforts, minimize risks and maximize profit. Finding a reliable professional accountant should be too difficult, you can search google services or search LinkedIn for ‘Accountant Newcastle’ to find recommended service providers in the local area.