So, you're thinking of starting a new business or you're planning on taking your side hobby full time? First of all, huge congratulations! But then the brain begins to whirr and you find yourself overwhelmed by legal structures and business bank accounts.
Step in our Guide to Accounting for New Businesses. In this blog, we're going to walk you through the basic steps you need to take to get your business finances looking ship shape. Whilst this isn't an exhaustive list, it's certainly going to equip you with all the basics to get your business off the ground financially.
If you're looking for more tailored guidance and in-depth advice then we're here to help. Get in touch by giving us a call on 01423 431889 or email catherine@bctaccountants.co.uk.
Get Yourself Legally Set Up
First up, it's time to set your business up by legally registering it. The route you take with this depends a little on your goals, set up and finances. Take a read of our blog Sole Trader or Limited Company for some help and guidance with this age old accounting question for new businesses.
Set Up a Business Bank Account
The easiest way to keep a track of these finances? Get yourself a bank account for your business. This way you can effortlessly keep a track of all the money going in and out of your business or side hustle. While sole traders aren't legally required to have a separate bank account, it's certainly a good idea to look into getting one.
Track Your Finances
From day one you're going to want to get in a good routine of keeping on top of your business finances. That means keeping a record of some shape or form in the early days. This allows you to effectively and accurately monitor your business growth and trajectory.
Invest in Bookkeeping Tools
We're big fans of using bookkeeping tools like Xero to achieve straightforward financial tracking. Xero is online accounting software that helps you to save time on your paperwork and get paid faster. What's more, the Xero mobile app works with iPhone and iPad & Android phones and tablets so you can easily keep a handle of your finances on the go.
Understand the Basics
With so many new keywords and phrases to get an understanding of, we can see how formidable your business accounting can feel. Here at BCT Accountants, we're passionate about making accounting accessible to all. Whether that's through our flexible services or no-jargon approach to accounting, ease is at the heart of our business.
Take a look at our Accounting Terms and Phrases Glossary for some clarity over those tricky terms you keep seeing.
Hire an Accountant
If you're still feeling in over your head, it could be time to hire an accountant for your new business. They'll take the stress out of your finances, from registering with HMRC to employing your first members of staff - and everything in-between. Your accountant is there to help you save money and time, allowing you to focus on what you love doing in your business.
If you'd like to chat about how an accountant could best support you and your own circumstances, we recommending booking in a free no-obligation consultation call. Give Catherine a call on 01423 431889 or email catherine@bctaccountants.co.uk.
Please note: all stats are accurate for the 2021/22 tax year.