Starting a new business is an exciting venture, but it doesn’t come without its challenges. One of the first decisions that every entrepreneur has to make is the business structure they will operate under.
You don’t have to work through such complicated procedures alone, though. Accountants for company formations can help you make the best decision for your goals. Here’s how.
Choosing the right business structure
When you create a business, you need to choose its structure—will you operate as a sole trader? Partnership? Or a limited company? Each structure has advantages and disadvantages, most related to personal liability for debts, tax rates and deductions, and general administration.
Having worked with various types of businesses, most accountants understand the nuances of each structure. They will, therefore, be able to help you evaluate things like the level of risk associated with your business, your funding needs, and your long-term goals to then assist you decide which structure is right for you.
For example, a limited company may be more advantageous if you plan on seeking outside investment as you can sell shares to investors. Conversely, if you’re starting small and want to keep things simple, operating as a sole trader might be the way to go. By consulting an accountant, you can select the structure that aligns with your business vision while minimising potential pitfalls.
Accountants helping you set up a company
This article is about how accountants can help you set up a limited company, so we’ll assume you’re certain this is the right business structure.
Registering a company may seem simple, but there’s a lot to it that can confuse entrepreneurs setting up their first one. However, an accountant can help by guiding you through the necessary forms and documentation. Specifically, they should be able to guide you through the technicalities of choosing a company name, prepare the Articles of Association, complete all registration forms accurately, and register your business with Companies House and HMRC.
There are also several legal requirements for companies to follow, including annual accounts tax returns. Again, an accountant will be able to help you by taking you through these requirements and assisting in preparing and filing the necessary documentation. Their expertise here is extremely useful as they’ll help you make mistakes that could result in financial penalties and keep your business in good standing from the start.
Setting up systems from day one
While the initial setup of your company is crucial, keeping up with the administration is a constant job – and creating strong systems and processes right away will help you manage your business in the future. Here’s where you should focus (and where an accountant will be able to help):
- Bookkeeping systems: Bookkeeping is essential as it allows you to track your transactions, which is important for financial reporting and statutory requirements. An accountant can recommend and implement accounting software that suits your business needs, allowing you to maintain accurate records and streamline financial management.
- Financial forecasting: Understanding your financial health is key to making informed decisions. Accountants can help you create robust financial forecasts that accurately predict your income and expenses, which will help you make better business decisions.
- Tax planning: Taxation can be very confusing for new businesses. An accountant can advise on legitimate tax deductions, credits, and strategies to minimise tax liability. They can also ensure you meet your tax obligations on time, avoiding unnecessary penalties.
Get in touch with us
If you’re looking to set up a company, hopefully, we’ve demonstrated how useful an accountant can be. So, if you’re embarking on this exciting journey, please contact us. As accountants for company formation, we specialise in assisting newly formed companies, providing the expertise and support you need to thrive.
Let us help you lay a solid foundation for your business today!