Advice for start ups
Fifty percent of start-up businesses fail in the first year and 95 percent fail within the first five years and yet the SME market continues to grow. Whilst no one knows if your business will succeed or fail, you can take steps to help your business get off to the best start.
While most entrepreneurs focus on getting their business up and running, many often forget the importance of financial controls and how it sits at the heart of every business. Every entrepreneur wants their business to grow and be profitable so you need to understand your finances and the process of your financial management from the beginning.
Every business regardless of size and turnover needs the professional advice, expertise and support of a professional accountant. Especially when first starting out.
It is important for you to understand the basics of financial management. After all, how can you succeed if you don’t know how your business is performing financially? Or you don’t know the importance of cash flow and profit
It is also important to you to understand the differences between the various business structures – sole-trader, partnership and limited company.
Sole-trader and partnership
Setting up your business under these entities is relatively straightforward. All you are required to do is register with HMRC. You don’t have to publish or file your accounts and you only pay tax on the profits you make.
However the disadvantage is that you have little security and unlimited liability. Therefore if you are liable for debts that can’t be paid then your creditors are in a position to seize your personal assets.
Registering your business as a limited company means that you will have to accept more regulation. You need to register through Companies House and let HMRC know how many employees you have. You will also have to pay national insurance and income tax. However, the advantages are that you benefit from limited liability. Your personal assets are more protected. You are also required to publish a yearly basic financial report which is made available for anyone to access.
Cloud computing has opened a gateway of possibilities for business of all sizes and sharing your data with us in this way allows us to regularly check and cross-examine it. Also by moving your accounting needs online you can take advantage of filing your VAT return and paying your VAT electronically which will allow you to benefit from extended payment deadlines.
The consequences of bad bookkeeping and financial management are significant and can often make or break the success of a business. But by putting good accountancy practices in place along with making your accountant an integral part of your team, you have the best opportunity to help your business to grow.
JWPCreers will become your company’s financial partner for the life of your business. Initially, we will propose two meetings. One meeting will be at your site, the other at our offices in York or Selby. During the meetings, we will advise you on three things: our services, our people and our fees.
Services: Our list of services include:
People: The people you meet will be the same ones who will be handling your business.
Fees: We, like most accounting firms, charge by the hour.
So why choose JWPCreers as your accountant?
- Our partners and staff have years of knowledge and insight and will be with you throughout your business journey
- We can identify problems with your finances before it’s too late
- We can offer you advice and act accordingly on important issues such as tax legislation
- We will keep you up to date with changes to government legislation
- We can find ways to maximise the potential of your company in order to ensure growth
If you are thinking of starting a business, or your business is in its early years and you need advice from a forward-thinking accountant, contact us now on 01904 717260 or email firstname.lastname@example.org