Starting your own business is an exciting but scary challenge, and that’s why we’re here to make it that little bit easier for you. Here are our top 3 accounting tips for when you start your business:
The technology we have available now is exceptional, and not making the most of it will cost you in time and money. Cloud Accounting software allows you to access your accounts and data from anywhere, at any time, on any device! This gives you the flexibility you need to start up your business as it is easier to run your business on the go. Plus, Cloud Accounting is one of the safest options for your data and you don’t need to spend extra money on servers or backups. Using technology will help you automate a lot of data entry, reducing the chance for human error, which in turn will save you time.
In addition, if you’re not already paperless, using technology will reduce your costs. Just think about how many invoices, envelopes, late notices, as so on that you send out, all this could be done through email or through an Accountancy Software Platform.
Choosing a software that you can grow your business with is a must, take a look at our Top 4 Accounting Software Platforms for Your Small Business, including, Xero and Sage. Of course, you can ask us which we would recommend for your small business.
Separate Your Business and Personal Accounts
As soon as you start, make sure to open either a Business Bank Account, or if you’re a sole trader, a separate current account that’s specifically for the business. Too often we see businesses mixing their personal and professional finances. This not only limits your audit trail but will also cause problems later down the line when you come to declare your income and expenses and you have to trawl through your personal account, remembering all your business transactions.
Find an Accountant
When you first start up your business, there is a lot to think about, from the numerous legal implications and creating business plans, to tax planning and deciding whether to register for VAT. One of the very first lessons you will learn in business is that you need to ask for help, and that’s okay! You need someone who has been there, in the position you’re in, and understands the feelings and thought processes that you are going through. You need someone that can not only take the weight off your shoulders by completing all your tax returns, management accounts and will file for VAT, but you need someone that can advise you on how to grow your business. Not all accountants are open to doing this, so you need to ensure you choose wisely, otherwise it could be a costly business mistake. Client testimonials are a great way to see if specific accountancy firms are delivering on what they promise.