Starting a business: Why you need an accountant from day one

Here we discuss what you should consider when starting a business and how an accountant can help you from day one. 

Starting your business 

Create a business plan 

A business plan gives you focus and gets you to think of all areas of your business, including financial, before you start trading. If you require any financial investment, a great business plan will be crucial in helping you achieve this. 

Our guide to writing a successful business plan will help you get the results you need. 

Choosing the right business structure 

A sole trader structure may seem the obvious choice when starting a business but it’s important to consider other available options. There may be advantages to running your business as a partnership or limited company. Considering this at the start of your journey and thereafter will keep you trading efficiently. 

An accountant is the perfect person to look at and advise you on business structure. They can prepare tax calculations showing where you can find tax savings. They will also highlight other practical benefits and drawbacks. 

 

Get a bank account 

Having a separate bank account solely for your business is essential in keeping clear financial records. Holding your business cash alongside your personal cash can lead to many issues down the line including: 

• Omission of business expenses in accounts and tax return, resulting in a loss of tax relief 
• Inclusion of personal expenses in error in your business taxes, resulting in a lower tax liability which could lead to penalties and interest from HMRC 
• Insufficient funds being left in the business as a result of excessive drawings/loan payments being taken from the business 
• A limited company must have a bank account in its own name 
• More work when record keeping and bookkeeping 

For more information on having a business bank account, read our guide. 

Find suitable business premises 

Depending on your business, you may need premises to work from, or you may be able to work from home. If you do need somewhere to work from, doing your research is important. 

Location is key for a lot of businesses, if you are a walk-in business you need to get enough customers passing by. However, you don’t want to pay too much for a central location if that isn’t necessary. 

If you’re Running a mobile business, here are some expert tips to making it a success. 

Get the right accounting software 

When considering accounting and bookkeeping software, there’s a lot to choose from. The main market leaders, QuickBooks, Xero and Dext are good places to start. If your business is more niche there could be specific software that you’d benefit from. Speak to your accountant who can offer you advice. 

Make your first sale 

Marketing your business, setting up social media pages and advertising your business locally will encourage that first sale. Word of mouth is great marketing and, as you get more sales, news will spread recommending your services. 

Asking customers to leave reviews can be worthwhile. Including requests on email correspondence, business cards, or your invoice are all effective ways of asking for feedback. 

Celebrate your success

Running a business can be hard, always celebrate the wins, no matter how small. Give yourself recognition for all your hard work. Taking a moment to stop and appreciate everything that has happened is important. 

Register your business with HMRC 

Once you start trading you must register your business with HM Revenue & Customs (HMRC). Your business structure will determine what you need to register for, including self-assessment, self-employment and corporation tax. 

Why you need an accountant from day one 

Don’t wait until the tax and accounts filing deadlines approach, an accountant can help you thrive from day one. 

Working with an accountant from the beginning of your business journey can help you make the best decisions. Accountants can give essential advice, including proactive tax planning. 

Knowing an estimate of your tax bill for year one and two is essential so you don’t receive a nasty shock. This will allow you to save enough for your tax bill and relieve any stress. 

Make tax-efficient decisions by: 

• getting upfront advice 
• understanding the tax reliefs you’re entitled to 
• knowing what expenses you can claim 

How accountants can save you money 

Accountancy fees are an expense. However, you can also see them as an investment in your business's success. Here’s why: 

• Tax Reliefs and Deductions: An accountant can spot savings you might overlook on your own 
• Time Savings: Free yourself up to focus on growing your business 
• Avoid errors: Prevent fines and penalties as a result of late or incorrect filings 
• Escape stress: If finance isn’t your forte, it can cause high levels of stress. Prevent that stress by letting an accountant do it for you. 

Building a support network 

When choosing an accountant, here are some factors to consider: 

• HMRC support: From webinars to workshops, these resources are invaluable. 
• Local Growth hubs: These networks support local businesses with events, workshops and advice. 
• Help to grow teams: Get help from specialist online or face-to-face. 
• Local Business Hubs: Access grants, networking events, and mentoring through your local council. 
• Networking Groups: Join local Chambers of Commerce or sector-specific organisations. 

Choosing the right accountant 

Here are some factors to consider when getting an accountant, prioritise these based on your personal preferences and reach out to accountants your local area. 

• Location: Having a local accountant can be essential in supporting your business. You can meet face-to-face, drop off paperwork, and sign documentation easily. They'll know more about your local community and be able to help you grow your local support network. 
• Experience: An experienced accountant plays a crucial role in ensuring everything is completed correctly. 
• Reputation: Nothing is better than a first hand referral from someone you know. Looking at online reviews and testimonials are also important. Check out reviews to ensure that people regard the accountant well locally. 
• Transparent fees: Meeting an accountant who gives you an up-front quote will ensure you know what to expect. No one likes hidden surprises, it is important to understand the quote. A friendly accountant can help you with this. 

Are TaxAssist Accountants right for you? 

Starting a business is an exciting adventure, but there are challenges and you don’t have to go it alone. Ready to take the first step? Call our team on 01756 541005 or use our online contact form to arrange a free initial consultation. 

 

Last updated 5 Feb 2025 | First published 5 Feb 2025

Share

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

---