Starting a business is an exciting journey filled with creativity, innovation, and the thrill of bringing an idea to life. However, amidst all the energy and focus on launching a startup, financial management can often take a backseat. This is where the role of an accountant becomes essential. But when exactly does a startup need an accountant?
Many entrepreneurs believe they can handle their finances independently in the early stages of a startup. While this might work for some, bringing in an accountant from the outset establishes a strong financial foundation.
An accountant can assist with:
Setting up your Business Structure so that you understand the best organisational and ownership structure.
Ensuring your Company Incorporation is exactly what you require.
Financial Process Implementation to accurately track financial data from the outset.
VAT Registration supporting you with your initial engagement with HMRC.
PAYE Registration and Payroll Setup getting you ready to pay your staff and manage your taxes correctly.
Creating realistic budgets and financial forecasts, that will give you a clear picture of your startup’s financial health and guide you in your decision making.
Understanding the Tax Incentive schemes available to UK taxpayers that you can invest in from the early stages, such as SEIS/EIS.
If your funding is complex or you anticipate rapid growth, involving an accountant early on can prevent costly mistakes and help you make the most of financial opportunities.
While basic bookkeeping might suffice initially, as your business grows the complexities of financial reporting, tax laws, and strategic planning increase. Weigh the cost of hiring an accountant against the potential financial risks of going it alone.
If you’d like to more information on the above our full StartUp Essentials guide is available to download, for free, from our website here. If you’re ready to bring an accountant on board, the CKLG team is here to help. We specialise in financial planning, compliance, and setting your startup on the right path. We aim to be as flexible as possible and transparent with pricing, so the scope of our services adapt as your needs change. Call us today on 01223 810100 to discuss how we can support your business.
