The global pandemic has created a surge in new business registrations, and it seems to have created a new wave of the self-employed and a rise in new startups, which is fantastic news! More and more of us see the benefits of being our own boss or turning our skills into a viable business option. All new businesses can find money to be tight when they first startup, and it can be hard to balance cash flow between what is essential and what isn’t, and it can be tempting to think accountancy should be the bottom of the list.

Hiring an accountant for your startup as an afterthought or right before your tax returns need to be filed or worse – when they are late could end up costing you more than it would have done so at the start! Even so, many early-stage startups continue to be on the fence about hiring an accountant to provide financial advice and support.

Why Your Startup Needs An Accountant

Why Hire An Accountant For My Startup? 

Let’s be honest your startup is taking a lot of your time from dealing with pitch decks and proposals to sales, marketing and then actually delivering the services/products to your customers. The last thing you need to worry about is bookkeeping and filing tax returns!

Accountants do much more than just bookkeeping and tax returns, which is why it is always advisable to seek an accountant for your new business! Accountants have extended knowledge of how to navigate the tax minefield and the legalities of running a business and can even help you find funding sources to help build the business. A good accountant will be able to help your startup by:

  • Keep you legally compliant financially.
  • Understand your tax liabilities and exemptions.
  • Guide your strategic direction through goals and budgets.
  • Help you in minimizing your tax bill.
  • Help you with business licenses and incorporation documents.

If your startup also hires staff, an accountant will help run payroll and ensure that all the required taxes and reports are filed with HMRC so that you have even less work and headaches to deal with!

How Do You Choose an Accountant for Your Startup? 

As accountants could save you more than they cost to hire, they must have their finger on the pulse and know what they are doing. The three most vital aspects of hiring an accountant would be:

  • Are they qualified
  • Do they have industry-specific experience?
  • Do they come recommended/have good online reviews.

Keeping those three things at the forefront of your mind when researching who to hire will ensure that you get the best possible fit for your new business! We have also covered this in another blog called: How to Choose the Right Accountant to Invest In, which goes a little deeper into how to choose an accountant.

DIY Accounting: Good or Bad? 

Trust us; we know money can be tight when launching a startup, so DIY accounting will always look like the best option until you find your feet, and there is nothing wrong with that. Not everyone has the funds to commit or feels comfortable with their choice to do it using a spreadsheet and a calculator. There is no legal requirement to hire an accountant, and you may feel it’s an expense you cannot afford in your business’s early stages, which is perfectly fine!

Of course, the major drawback to doing DIY accounts is if you get it wrong. HMRC hand out some pretty hefty fines for missing tax returns, and worse – if you get your figures wrong, you could be audited, and that could land you in some serious legal trouble. If you are not 100% confident with figures, the law around tax and what can and cannot be claimed via a business, it is always advisable to hire an accountant!

We recommend checking out another of our blogs: Do I need an accountant for my business? Before deciding to hire an accountant or not for your startup! The blog covers the pros and cons of hiring an accountant in general!

Of course, if you are looking for expert accountants for your business, we don’t just blog about it – we are accountants! You can check out what we do by checking our services pages or getting in touch. We are on Facebook, Instagram, LinkedIn, Twitter, or you can email us!

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