ACCOUNTING SHOULD BE FRONT LINE IN BUSINESS CRUSADE
BUSINESS
by Paul Nixon of Wilkins Kennedy
WE HAVE NOW ENTERED THE“ GOLDEN YEARS” FOR SMALL FIRMS. IMPROVED ACCESS TO FINANCE AND BETTER TECHNOLOGY HAS PAVED THE WAY FOR A RECORD NUMBER OF SMALL BUSINESSES IN THE UK, WITH 5.4 MILLION PRIVATE SECTOR BUSINESSES TRADING AT THE START OF 2015 – AN INCREASE OF 146,000 SINCE 2014 AND 1.9 MILLION SINCE 2000. IT IS NO WONDER THAT MANY START-UPS CAN FEEL LIKE THEY ARE ENTERING A STAND-OFF FOR THEIR MARKET SHARE.
In to the fray Not only do entrepreneurs face competitive battle, but they also face a combat between the running of their business and delivering on day-to-day work. Whilst there is a keenness to get going and get stuck in to a launch of a new product or service, the excitement stops when it comes to an accounting system. I agree that thinking tax returns over new equipment and shiny offices can seem like a bore, but, ignore at your peril.
Pick your battles Letting your guard down for the taxman is one sure-fire way to trouble. Filing late returns or incorrect information can lead to hefty fines, which is exactly what you don’ t need on top of the already stretched finances of starting a business.
But accountancy is more than just dealing with HMRC. An accountant can also help you to build a reliable business plan which is probably the most important tool needed for success. A solid business plan will also help you to make accurate financial forecasts, predict revenue streams and anticipate challenges which may lie ahead.
Arm yourself As well as a business plan, I’ d recommend any time-pressed entrepreneur to consider using a professional business accounting software to help avoid financial mismanagement. Here at Wilkins Kennedy, we offer cloud-based solutions that keep track of all financial records including expenditure and revenues, so profit and loss can be calculated in real-time. Not only will this help you to plan and manage any issues which may arise, but an accurate accounting system set up in the correct way can be a requirement for investors, before during and after the funding process.
I know that for most start-ups in their race to market, accounting is not in the front line of battle, but an accurate accounting system will pay you dividends, quite literally. It can also save you time and money in the long term.
Wilkins Kennedy already helps many clients run up to date accounting systems that prove to be the lifeline of their business. Most of these systems operate via the cloud and Wilkins Kennedy is currently working to improve this offering to make the day-to-day running of the systems as easy as possible. All you need to do is hand over your accounting systems to the cloud accounting team – we can take care of the rest!
For more information, email Partner, Paul Nixon, at paul. nixon @ wilkinskennedy. com or call on 01233 629255.
www. wilkinskennedy. com
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