Small Businesses contribute significantly to the UK economy and almost 10,000 businesses are set up every week, yet, starting a new business remains one of the most complex and daunting prospects for most. Perhaps, that’s the reason for almost 60% of the businesses failing within the first year.
We believe this is due to lack of thorough planning, a detailed business plan and appropriate professional assistance from the start.
A step by step detailed approach can help understand the requirements at every level of this venture, resulting in a successful business.
Start by researching the validity and potential of your business idea, making necessary adjustments and finalising the business plan. It is advisable to seek professional help at this stage and devise a professional business plan to ensure all necessary aspects are covered to provide you with a sound footing.
Discuss the different business set up and structure options with an accountant to understand the benefits and suitability. Limited Company remains the safest and most tax beneficial setup, very often compared with sole proprietorship, which remains the simplest of setups and is suited to individuals with very simple operations and basic requirements.
Discuss the funding requirements of your new business with an expert to ensure adequate funds are available to fully launch and grow the business to its aspired level. Borrowing capacity of your business will increase with a successful profitable history.
These include basic bookkeeping system e.g Quickbooks, Xero and can be extended to other advanced information systems as the requirements grow in line with the growth of the business. While a bookkeeping system is very important to meet the new MTD requirements from April 2019, it is also fundamental to monitoring your business’ financial performance.
Depending on the nature and size of your business, relevant insurance covers should be arranged. These will normally include Professional Indemnity, Public Liability, Employer’s Liability, Product Liability and Motor Fleet policies.
Efficient business tax planning is very important at all levels of your business journey, however, it is critical to discuss your tax strategy with an accountant at the initial stages of your business to ensure maximum after-tax profits.
Arrangements should be made to cover all accounting and taxation compliance and planning matters of your business. These will include Initial business set up, HMRC registrations, Payroll, Statutory Accounts, Annual Confirmation Statement, Corporation Tax Return and Personal Tax Return.
We provide a complete business service covering all aspects of your business’ set up requirements. Please book a free no-obligation consultation to discuss your business idea and how we can help you.
Greystone Accountants, helping small businesses in Birmingham, Walsall and throughout the UK.