Setting up a new business comes with a mixture of challenges and emotions – exciting whilst also daunting.
Most of my working life I’ve been lucky enough to have been employed, but I had a period of a few years where I actually ran a consultancy business implementing business computer systems. I loved the independence, being in control, and having to learn about real life sales issues, marketing and the general commercial side.
The marketing and sales aspect was my challenge, but for most small businesses, the area which I found easy, because of my accountancy/process background, was the billing, managing cash flow, producing company accounts and doing tax etc. (I actually enjoyed this bit, but don’t tell anyone!) Friends of mine with businesses, worried and moaned about this aspect and understandably so.
When setting up a business there are so many things to worry about, where and who will I sell my product/service, how will I pay the bills, how does tax work, will I still be able to go back to my mums house if it all goes wrong? … So I guess worrying about paperwork and keeping records is low on the priority list in the beginning.
HMRC are attempting to alleviate some of the accounting and tax complexities with their ‘Simplified accounts for the simplest businesses’ proposals, which I will be blogging about in a few weeks, but in the end, businesses will still need to keep good records, especially if they want to take maximum advantage of the new proposals. Do it from the start, this could help you save money and the need to worry later down the line with additional accountancy fees, possibly bank charges if over draft limits are exceeded and also keeping records of expenditure which can be attributed to the business which could save tax.
If you are thinking of setting up a business or maybe doing something ‘on the side’, Sage One Cashbook could be a good starting point for you, or if you find you need more then maybe Sage One Accounts is better suited, either way you can start becoming organised and in control ready for when you go global!