Are you starting a business on a small budget? Like most bootstrappers, you are probably looking for ways to cut costs. But whatever you do, don’t try to do your accounting yourself. This is one of the biggest mistakes small business owners in London do—and one that they quickly regret later on.
It’s always worth the money to hire accountants for London small businesses even if you consider yourself to be financially savvy. It’s even more essential if you don’t know how to manage your books and are just hoping to ‘learn as you go.’ Accounting is not something you want to mess with; any mistake can hurt your small business in the long-term.
Accountants for London small businesses can do many things for you during the start-up stage of your company. They can assist you in:
- Determining whether you should structure your business as a sole proprietorship, an LLC, a partnership, or a corporation
- Formulating the financial analysis part of your business plan
- Deciding on the kind of accounting software to use
- Opening a bank account for your business
- Putting in place accounting procedures that can help you comply with legal regulations and requirements
Once your company is off the ground, you will need the help of accountants for London small businesses to:
- Oversee payroll and payments
- Prepare financial statements for investors and lenders
- Understand the financial picture of your business at any given time so you can make informed decisions
- Plan for taxes and estimate tax payments during the year
- Close out books and generate year-end financial reports
- Compile and submit taxes
As your business starts to grow, you need an accountant to help you determine expansion opportunities. They can provide insight and accurate data on your cash flow patterns, pricing, financing, inventory management, etc. The best accountants for London small businesses also give advice on equipment and property purchase and leasing. More importantly, they help prevent you from getting audited, as well as prepare you for an audit should it be necessary.