Life is still tough but now we can dare to hope that things will soon begin to open up as we take the fight to Covid with life-saving vaccines. Businesses have been hit really hard during the last year but as things start to improve there will be many people thinking about starting up on their own.
Setting up a business is a difficult decision at the best of times and 2020 will have put many such ideas on hold, prompting a wait-and-see approach – but with the promise of brighter times to come, dreams will now be rekindled and plans made.
We understand that there will be an air of caution with the pandemic still hovering in the background but are equally certain that many successful new businesses will launch this year. So what do you need to know about starting your business in 2021?
Do I need an accountant to set up a business?
No, is the short answer. You can do it yourself but you really need to know what you are doing and have a good working knowledge and experience of financial affairs.
Advice from the beginning from a professional can be really useful in ensuring you set up correctly and have a workable, viable, long-term plan. For example, do you know if you should be a sole trader or register as a Limited company now? Should you be VAT registered now or wait until you hit the threshold?
There is so much to know and learn and that all takes time so why not save time and head off any potential disasters by consulting a professional? Investing in advice at the outset means you can crack on with your business set-up with the reassurance of knowing all the bases are covered and you won’t regret it further down the line.
In what other areas of my business would an accountant be beneficial?
Your accountant will compile an annual set of accounts and provide the associated tax return, helping to identify any tax-deductible expenses, help you set up a corporate structure before you begin trading, and help you better plan the future of your business through cash flow forecasting
An accountant will also prove invaluable in helping you access some of the many financing options now available to new businesses – ensuring you don’t miss out on funding in getting your business off to the best possible start.
Can I afford to invest in premises straight away?
Business planning includes lots of figures and targets and budgets so an accountant can help you with these figures and plans. They will have worked with other start-up businesses in similar circumstances to those you face and will be able to share lessons which they have learned along the way.
Everyone says just get on with it and then worry about the tax return when it is due. Is this right?
So many start-ups make this mistake – please don’t! It is so easy to spend the money as it comes in and fail to save for tax bills and to invest so the business is still there in 12 months’ time! It will be so much easier for you if you ‘start as you mean to go on’ and get your paperwork and planning in order from day one.
Having an accountant on your team means having access to top-notch advice on what you need to do to ensure you remain successful and there are no hidden surprises looming that may jeopardise the future of your business.