You have a fantastic concept for a new business.
You've done some research, decided it's worth pursuing and you're now taking the first steps to setting up the business.
When should you enlist the services of an accountant?
Right from the beginning!
Having an accountant on board from inception is an excellent way to ensure your business begins on the right track - and stays there throughout its journey.
There may be a number of points you've not yet thought about that you would benefit from the guidance of an accountant.
Business plan Your accountant will be able to work with you on your predicted financials and help write your business plan, which is especially important if you require investment to set the business up. They can check over your numbers - do they add up? Are they realistic? Have you foreseen all the startup costs? They will also be able to advise on other practicalities - do you need equipment to operate the business, and if so, should you purchase or lease it? With your accountants input there's every chance you'll be able to submit a business plan that's not only realistic but also professional, which could increase the likelihood of it succeeding.
Company structure There are a number of different ways in which you could structure your business. From sole traders or proprietors to limited companies, limited liability partnerships or corporations, so you need to choose the right one for your needs. Your accountant understands the advantages and disadvantages of the different options and can advise you on the one that suits you best.
Business infrastucture You will need to have systems and procedures in place in order to be able to run your business. This includes how your clients will order your products, how they will pay for them and then how you maintain your financial records. You'll need a basic accounting system right from the start, even if you get your accountant on board at the start, because the information must be correctly collated in order to be able to file VAT returns and pay your corporation tax.
Whether you begin as a one-man-band or even a handful of employees, if the business is a success then it will grow. With growth comes increased staffing numbers and potentially moving to new business premises, all of which increases the workload within the financial part of running your business. This can distract you from the growth of the business, especially if the financial element is not your first strength, as the amount of time it takes to undertake the workload can become excessive.
Your accountant will have the knowledge and skills to implement the changes you need to make. If you need to implement a payroll system or establish employee benefits such as healthcare and pensions their advice is invaluable.
They can also provide you with insights on the financial performance of your business, review your results and suggest improvements to help it continue to grow. If you need additional investment, need to change the company structure or make an acquisition, their knowledge can underpin your decisions and help to ensure you make the right ones.
it's likely that at some point in the future you'll want to exit from the business. When that time comes, you want to ensure you get the very best outcome for you, especially after all the hard work you've put into it.
You need to showcase the success of the business to any prospective buyers, show that it's a healthy, thriving business worthy of purchase. To do this you need to have a properly prepared set of accounts. Your accountant can also advise on the best way to structure the sale in terms of your tax liability.
Knight Accountants in Hastings are perfectly placed to be your partner in business throughout its journey. The team can guide you through the process of some of the complexities in financial and business management. They always endeavour to gain a full understanding of your business so that their advice and recommendations are tailored to your specific requirements.
In developing their relationship with you as a client they gain an insight into your business through your accounts preparation which helps them see the bigger picture. This means they can ably assist with both your short-term objectives and long term goals as the business owner.
To find out more about how the team can help, visit their website.
Member since: 22nd March 2018
Cale is the Owner of 'thebestofHastings', the award winning franchise, providing integrated marketing solutions to SMEs, connecting to the Hastings community and promoting local events in 1066 Country....