Starting a business takes a lot of courage no matter what the industry. Even in today’s challenging environment the rewards for becoming successful far outweigh the risks involved. However, having a clear business plan at the outset with tailored financial and tax support can be the difference between making it work and failure.
One of the first things you will need to do is decide on your business structure. This will need to be registered with HMRC and potentially other government bodies depending on your choice. Generally most start-up businesses are either Soletraders, Partnerships or Limited Companies.
We can review your current circumstances, including forecasted budgets and business plans and then advise about the best structure for you and your responsibilities. Each business structure has pro’s and cons so getting the advice early is essential.
Once you have chosen your business structure, you will need to have your financial controls implemented. We suggest that your business operates in a cloud based, online and paperless format so that you are efficient as possible. This is particularly important when the time comes to scale your business.
We can normally help you achieve this via Xero accounting software accompanied by Receipt Bank (after trying several bookkeeping packages over the years we feel this software is the best so why would we work or advise clients to use anything else). Please see our Making Tax Digital page to get some more information on the benefits of having a paperless function on place. In addition if you have an online presence (such as an amazon seller) then there may be other apps that you can integrate with your online accounting software to help grow your business such as Paypal, A2X and Sellarboard. We can help advise on all of these and can even access a discount for you from the supplier (we are gold partners of xero).
Once your accounting function is in place you will need some tax advice usually on the following:
- How to be paid tax efficiently – salary v dividend mix in case of Limited Companies
- How much you should be saving for Tax
- What business expenses are tax deductible
- Should you be VAT registered
- How to take on staff
- Are you entitled to any working tax credits or grants
Our team will be there every step of the way to help advise you in a no jargon approach so that you are confident you are as tax efficient as possible.
Once you are happy with the business set up you may need help from time to time on how to use the IT software and general tax and accounting advice and guidance. Our clients can arrange a virtual IT meeting with a member of our team who can talk them through any problems they are having with the software. We also provide general telephone and email accounting and tax advice for no extra charge.
Finally, our clients can choose to pay their accountancy fees monthly to help smooth the burden of having all this work performed at the outset. We believe in investing our time and commitment to start up businesses as there is nothing more satisfying then seeing our clients become successful entrepreneurs in time.
Please don’t hesitate to contact us to see how we can help you start up in business.