Essential Accounting Tips for Start Ups – Part 2

Here is Part 2 to last week’s post on Accounting Tips for Starts Ups.

Photo credit – toonpool.com

6. Don’t undersell yourself

  • Calculate a profitable price for your goods/service and STICK TO IT
  • Being the cheapest is a no win strategy
  • Services: Price = Hourly rate x 3 (Get a time management system)
  • Goods: Aim for Cost Price x 2 or 3

7. Claim back personal expenditure

  • Most start-ups are funded from the owners’ pockets
  • Keep a record of money you have spent – even before you start your business (travel, stationery, research) as it reduces your tax bill
  • Remember to keep receipts!

8. Don’t try and beat the system

  • If your sole aim is to pay as little tax as possible – then why are you bothering?
  • HMRC are spending £1 billion this year on making sure people don’t break tax laws
  • Aim to make more profits and utilise the tax allowances that are available

9. Get an accountant

  • A good one helps you grow a successful business and helps you avoid problems
  • “Chemistry” is important
  • Get a fixed fee quote from 2 or 3
  • Pay your accountant for business and tax advice…
  • …and not for sorting a mess out

10. Work “ON” not “IN” your business

  • Minimise your administration time by using good systems and being organised
  • Maximise your time spent on marketing, networking, research and business development….as these activities will move your business forward

 Extra: Reading for entrepreneurs

  • “The E-Myth Revisited” – Michael Gerber
  • “The Four Hour Work Week” – Tim Ferris
  • “Purple Cow” – Seth Godin
  • “Getting Things Done” – David Allen
  • “Rework” – Jason Fried
  • Any autobiography by one of the “Dragon’s Den”

And finally! No accounting knowledge needed for FreeAgent:

A small business owner comments:

“As a user I’m never struggling with it, it seems to have been designed by observing what real people need to do and how they do it.”

Good Luck.  We are here when you need us!

2 responses to “Essential Accounting Tips for Start Ups – Part 2

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