With most people today setting up a brand new company the last thing they usually worry about is accounting. This is mostly because they’re much more preoccupied and excited about the new venture that they’re starting, that they totally forget about the problem connected to accounting matters. A good number of accountants in London say they experience this kind of issue on a regular basis.
Somehow, this is easy to understand. For a start if they do not generate any money then there will be nothing to account for. In addition a lot of individuals think that accounting and tax are items to get concerned about later on in the commercial cycle. Others might view accounting situations as something that are generally there in order to inconvenience them and make an already complicated process more complicated.
The fact is that these assumptions are usually inaccurate for various reasons. The first one is the fact that to succeed in business venture people have got to adequately prepare, right from the start, not just in the middle of the adventure. It’s like leaving on a trip with no suitably planned route. It’s evident that you are going to get problems in your journey anywhere along the route.
The second reason you should consider accounting and taxation from the get go is regulations. There are a great deal of it to consider and plan for right from the start. There are Tax, PAYE, accounting dates and the various trading vehicles to be looked at. For those operating in specialised areas there may well be unique tax regulations in that business to be thought about. A case in point is going to be the construction sector where you can find unique regulations for sub-contractors that may prove to be quite costly if they aren’t effectively implemented. To get all or any of the legislative parts wrong can turn out to be costly eventually depending on your market; the amounts involved and how long before any problems are recognised.
Another reason is the very first of the beneficial aspects of having accounting and tax advice from the word go, and that’s regular advice that could really benefit the company. These are what you could call little problems which crop up as time goes on that the business owner may possibly need a qualified accountant to offer them advice on. A good one will be hire or purchase issues, when you should register for Value-added tax, to name a few. One business that I know that has benefited from such early decision is letshaveadrink.co. This company develops materials that help men master how to meet women anywhere and the owners recognised the importance of sound financial and general business advice from the start and went on to engage the services of a professional accounting firm even before they opened for business.
Finally, my suggestion to anyone who is starting a brand new company is to locate a business accountant that may help them with any challenges right from the start up. A good one will not only provide tax help but ongoing professional advice too.