Navigating the Financials as a Start-up Business
As a one-person powerhouse running your own business, every minute counts. It’s a non-stop juggling act – marketing, sales, operations, and, of course, the ever-important financial management. But when exactly is the right time?
Outsource to Optimise
When you’re in the thick of setting up or running your business, your time is best spent doing what you do best: driving your business forward. Outsourcing tasks like accounting can free up precious hours, allowing you to focus on generating income. The golden rule? As soon as you can afford to outsource, it’s wise to do so. An accountant doesn’t just keep your books in order; they can be strategic advisors who help maximise your profitability and guide your business growth.
Affordability vs Time Cost
For most people, the decision to hire an accountant comes down to cost. It’s important to weigh the affordability of accounting services against the value of your time. If DIY bookkeeping is eating into your productivity or, worse, leading to costly mistakes, the investment in professional accounting services may well pay for itself.
The DIY Approach
If you’re just starting DIY might be your initial approach. To support you, we provide a bookkeeping tool designed to simplify the process, making filing tax returns less of a headache. This tool is especially beneficial for small businesses who need a straightforward solution for managing their finances.
A Helping Hand
We understand that every business journey is unique, and sometimes you just need a bit of advice. That’s why we invite each of our customers to have a chat with our accountants. Whether you’re questioning how to manage your cash flow or when to register for VAT, our experts are here to guide you.
Here’s some topics you may like to discuss:
Are you aware of the pre-trading expenses you can claim?
Are you clear on how much National Insurance you pay as self-employed?
Do you know which day-to-day expenses are allowable deductions?
An accountant can check which legal structure is right for your business.
Are you familiar with HMRC’s Making Tax Digital?
Do you know how to calculate how much money to put aside each month for your annual tax bill?
Do you have money for profit, tax, or VAT in your main business account?
Do you know how to review your financial information regularly?
Can you claim working from home tax relief?
Do you know the difference between accounting profit and taxable profit?
Have you assessed whether you should be VAT registered or if you could benefit from a Flat Rate Scheme?
Are you confident about what financial records you need to keep and for how long?
Are you familiar with payroll requirements and the use of HMRC’s RTI (Real Time Information) system?
For tech and innovative start-ups, do you understand how R&D tax credits work?
Do you know if you would qualify for Entrepreneurs’ Relief on business asset disposals and its tax advantages?
The Bottom Line
Ultimately, hiring an accountant should be viewed not just as an expense, but as an investment in your business’ future. By entrusting your finances to the experts, you’re paving the way for smoother operations, better financial health, and more opportunities for growth.
For those who are on the fence, why not start by trying our bookkeeping tool? It’s a step towards professional accounting and might just be what you need to keep things running smoothly until you’re ready for the next step.
Ready to dive in?
If you’ve been following our 28-step start-up guide you will have access to our bookkeeping tool. And the initial consultation with our accountants might just reveal the countless ways in which we can help your business soar.
