In this blog we look at the role that an accountant will play when starting up a new business…
The modern accountant
You might think that your accountant is totally different to you and your business. Well the truth is we’re not. Most accountants are small business owners and have either been a start-up themselves or have a lot of experience helping businesses from the outset. Gone are the days that accountants just sit behind a desk all day number crunching; the modern accountant is interested in your business idea and has a passion for helping new businesses succeed.
Getting set up properly from the start is crucial. Engaging with an accountant to make sure you are tax compliant and have a healthy cash flow and financial model will allow you to put more energy into what you do best.
Forecasting for future success
As a new business owner you are about to embark on an exciting journey of doing something you love that will hopefully make you a decent living. However, to keep the business alive operationally you need to make sure you have a healthy cash flow. A financial forecast produced by your accountant will help you plan and give you peace of mind that you will be able to meet all of your obligations.
It is really important to be as realistic as possible and this is where your accountant can help. You do not want to underestimate or overestimate the sales your new business will generate as this could influence your strategic decisions. Your accountant will work with you to create an accurate financial forecast which you can use to monitor your businesses performance.
As a start-up it is a great idea to use cloud-based accounting software such as Xero to record all your financial transactions. Having all your vital financial information in a clear dashboard format can help you keep control of the finances and flag any concerns early. Keeping everything online such as your invoices and expense claims etc is so much easier to manage than a pile of papers and can really help to keep your head clear so you can work on growing your business. Xero also allows you to see your bank account in real time which again saves you time and means you are constantly monitoring the cash position which should be a daily activity.
Tax compliance is key
Accountants are always up to date with what you need to do to be tax compliant. It’s so important that you make sure you are compliant from day one of your new business and your accountant can guide you through how to do this and what legislation is relevant to you. Thinking about tax is not what you want to be doing when starting up a new business so let your accountant take care of all your tax needs for you. Your accountant will make sure you don’t fall foul of any penalties that could arise and make sure you are never worried about submitting a tax return before the deadline!
Fail to plan….
If you do not already have a business plan or need further help with where to start, your accountant can help you. To gain investment be it from a bank or an individual Investor, a strategic, well-thought-out business plan is crucial and solid financials will be the backbone of any such plan.
A shoulder to cry on?
Starting up a new business on your own can be lonely and daunting, but it does not have to be. An accountant is a great person to talk to. It is fantastic when a client rings up to just simply get things off their chest. Consider your accountant as a trusted advisor and a shoulder to cry on when things get tough.
Need more information?
We love learning about start-ups and helping you get off on the right foot! We offer a wide range of services that are tailored to new businesses who are just getting started. We have a huge range of experience in all sectors across our team. From restaurants, fashion brands, IT businesses and many more besides. The team work hard to ensure they create smart and effective tax-efficient solutions for start-ups to optimise growth and help them succeed. If you want to learn more about how the team can help or simply want some start-up advice from a trusted accountant do not hesitate to contact us.