Errors in your accounting or neglecting to comply with statutory requirements can have significant consequences for a start up business and most small business. For example not knowing when to register for VAT or PAYE can result in serious penalties for suspected income tax and VAT avoidance. For a sizeable corporation, this can hurt both the funding as well as the reputation of the company. When it comes to a small business, especially a business start up, it can have a significant effect and quite possibly even lead the business to fail, in the event that there is not enough funds to pay off the penalties.
Every business need the expert services of accountants to keep the company from financial difficulties. Of course, the majority of us know that lack of financial advice is the biggest killer of many start up business. That’s the reason why entrepreneurs Â need to have accountants for their business, even as a start up business. Anyone starting a new business should have an accountant to help them with their start up business for the following reasons:
Start Up Business accountants help with choosing legal structure
An Accountants for startup can help you figure out which legal structure will be ideal for your type of business start up. They can advise you when it comes to making a choice between sole proprietorship, a Limited Liability Company or to a partnership. That is how you initially arrive at the name for your business startup. It is just after that decision that legal professionals are going to be required to complete the documents in order to legalise the business enterprise.
An accountant will prepare your annual accounts and tax return
An Accountant who knows the requirements of start up businesses will work closely with you to prepare your first year accounts and tax return. That’s how they help your enterprise to pay the minimum tax allowable and to keep you within boundaries of tax legislations. Tax rules all over the world are rather complex and tough to understand by the inexperienced. It is accountants who fully understand the language of taxes and exactly how to manage an enterprise without running foul of tax laws and regulations.
An accountant will help with business evaluation
Small business accountants help to assess the integrity of a start up business as a going-concern every so often. An accountant can identify what is making money for the business and what is costing the company money. Their expertise will enable them to see when your company is vulnerable to financial difficulties, specially when confronted with increasing bills and problematic financial situations.
They can suggest the best services for your start up business
An accountant can suggest the type of banking products and services your start up business require and also the insurance cover that will be most beneficial for your business. When you have to get a business loan, it is your accountants who will write a business plan and cash flow forecast in the format that lenders prefer thus significantly enhancing your prospects of getting the business loan.
Representation with HMRC
A good small business accountant can help you to manage your payroll and overhead in order to keep your company going. Furthermore, a good start up accountant will act as your representative or agent as it is officially known when it comes to dealing with HM Revenue and Customs. That representation can help to greatly reduce the likelihood that the tax authorities will reject your company accounts or start an investigation into your company accounts. Having a good accountant for your start up business will also ensure that you meet all the filing deadline and prevent you from incurring late filing penalties.
A business start up accountant can provide general business advice
Managing a start up business is a highly challenging and troublesome project. Using experts, especially accountants drastically helps a company to navigate through the elaborate financial maze that normally affects virtually any business enterprise. Granted you may be required to pay fees to accounting firms to obtain their services. That’s alright. These service fees pale into insignificance if you take into consideration the amount of money good accountants are capable of generating for you or saving you. That is why it really is unavoidable, that as a business owner, you have to learn to make use of the knowledge and services of a competent accountant if you want your enterprise to become successful and make money for you.
Choose the best accounting service for a start up business
Running a small business is tough work at the best of times. It is wise to get the best help on the market that you can afford. With regard to accountancy services there are many alternatives for one to select from. If you are looking for guidance, try us out. We have many satisfied clients who have been with us for years. We offer a friendly, professional and effective start up business accounting at competitive rates. Contact us for more details on how we can help your business start up to prosper.