Bookkeeping For Start-ups – Get It Right From The Start

Bookkeeping for start-ups – we can already hear what you are thinking – it’s an area that you don’t have to bother about initially! We do understand that with a new business, there seems to be a lot going out and not a lot coming in. It therefore makes sense to you not to pay for something you think you can do yourself. If you do feel confident that you can do your own bookkeeping and you will have the time to do it, then you will be off to a flying start. However, if you don’t get your financials in order right from the outset, it could create a serious muddle that will cost a lot to put right. And worse, in the long run, it might even cost you your business!

Making the right financial decisions is key to the success of your start-up business

Starting your own business is exciting and can be extremely rewarding. But there are many things you need to consider. Lots of planning is involved, including creating a business plan, financial decisions will need to be made, market research will have to be carried out and you may think you have to acquire knowledge in areas that you don’t know much about. And that’s all before you are open for business.

Set realistic goals for your start-up business

It is imperative to set realistic goals and expectations. Patience is the name of the game as slow and steady will see you reaping the rewards further down the line. Here at team4, we unfortunately have seen many start-ups come to an abrupt halt, that means going out of business when they need not have done if they had paid more attention to those financial decisions in the first place and got their bookkeeping in order. In our latest article, we want to demonstrate to you what will happen if you don’t hire a bookkeeper for your start-up, why it’s so important to get your business accounts right from the get go and how we can help.

What will happen if you don’t hire a bookkeeper for your start-up?

• You won’t use software
• Or if you do, you may choose software that isn’t the best fit for your type of business
• Bookkeeping is busy work and you just won’t have the time to do it every day
• Insufficient knowledge will cause you to set up as a sole trader when you should be a limited company or vice versa
• And you won’t know what constitutes a personal or business expense, so expenses are categorised incorrectly
• You will have no idea about your cash flow and will let it stagnate
• If your electronic systems fail, you won’t have a back up
• You will mix up personal and business bank accounts

But that’s not all…do you want to be checking your business accounts everyday?

What most start-up businesses do is actually nothing and poor record keeping at best. Receipts, invoices, statements and other financial stuff piles up. It’s amazing how quickly it gets out of control and you’ll keep saying, “I’ll sort it out tomorrow or at the weekend”. If you do a little bit everyday, you’ll always stay in control – however, that’s tough and who really wants to do bookkeeping every day!

Why you should hire a bookkeeper for your start up

• Your time would be better spent on strategy, marketing and other key areas of your new business
• It will allow you to have a work-life balance
• Freedom from the tedious financial aspects of your business (which strangely bookkeepers love)
• Peace of mind that everything is paid on time
• Guaranteed correct and on time tax filings
• Stay on top of your cash flow
• Saving you money due to the reduced risk of errors, delayed accounts receivable and basically lack of knowledge
• You won’t be involved in things that you don’t really know about

All in all, unless you are a bookkeeper, you will need a bookkeeper! Allocate your time to grow your company, not the books!

How team4 can help your start-up business get off to a flying start

We actually feel that as bookkeepers looking after your business accounting affairs, we are there to hold your hand, in the figurative sense. It is important to get the financials right from the start and we’ll offer training including the right software to use and provide initial help. And it will not only save you a lot of money but also stress and anxiety and give you the peace of mind that your company is in good financial hands. You’ll find it’s much cheaper to set up your books correctly than paying a fortune later on to sort them out. If you have a start-up business and want to talk to a friendly bookkeeping company, call team4 on +44(0)1825 763378 or email info@team4bookkeeping.co.uk