The UK is a nation of entrepreneurs. 2018 started with some 5.6 million small businesses and we’re pleased to say that 2019 so far has been another exciting period of new business launches. Setting up your own business – whether it’s an idea you’ve been sitting on for a while or a venture that has sparked your imagination more recently – is exciting but daunting. The bureaucracy of business can deter many entrepreneurs from turning their vision into a reality, with the prospect of managing business finances a top concern.
We’re here to help you get to grips with your accounts with the following essential guide for startups.
Focus on building your cash reserve
Having cash within a business is easier said than done. Cash flow can be difficult to maintain, particularly during those early years. In fact, many new businesses fail soon after launching due to cash flow issues.
Make one of your top priorities building a reserve to keep cash flowing. We recommend having a minimum of 3 months’ operating expenses in your reserve to ensure you’re prepared for the short term, whatever challenges the UK economy or your specific industry throws at you.
Use technology to your advantage
Business finances are becoming increasingly reliant on technology. HM Revenue & Customs (HMRC) is even getting in on the act with their Making Tax Digital (MTD) initiative. Using the latest and greatest technology to manage your accounts unlocks a number of benefits. The right software can save you time and money, as well as make bookkeeping, financial forecasting and the payment of tax simple.
Budget for the long and short term
Devising and sticking to a budget is integral to the success of any startup, so budget early and accurately. Go into as much detail as you can when budgeting for each area of your business, being sure to set money aside for unexpected circumstances and emergencies.
Let us help you with accounting
Leave your business finances in the best hands by partnering with a qualified and experienced accountant. By enlisting the help of an accountant, you can get on with running and growing your business.
Here at Hurren, we have the advice and support you need to make your startup a success. Our accountants assist with everything from annual accounts, management accounts and bookkeeping to payroll, VAT returns and tax returns. We also specialise in assisting startups and small businesses.
Get in touch with our accounting team today and discover a range of professional services that won’t let you down, whatever stage your company is at.