Where it all begins: Accounting for Startups
In one of my recent blogs I introduced the JMB journey. In this blog we take a closer look at the first phase of that journey and the accounting that startups or growing businesses may need to consider.
A Robust Business Plan is Essential
An essential step when starting a business is to develop a robust business plan. This comprehensive document serves as a roadmap for your venture, detailing the business model, revenue streams, marketing strategy, and financial projections.
By clearly outlining your business model, you establish the framework for how your company will create and deliver value to customers. Identifying revenue streams ensures you have a clear understanding of how your business will generate income.
A well-thought-out marketing strategy defines how you will attract and retain customers, while financial projections provide insight into the anticipated profitability and financial health of your business.
Developing a robust business plan not only helps you stay focused and organised but also proves invaluable when seeking funding from investors or lenders.
Our team at JMB Accounting can provide support and advice as you build your business plan. We have years of experience when it comes to helping new businesses in Hampshire and West Sussex at this early stage in their development so you know you’re in safe hands.
Choosing a business structure for your Startup
Next, you need to determine the most suitable business structure for your new venture, whether as a sole trader, partnership, or limited company. Each structure has distinct implications for liability, taxation, and administrative requirements.
Sole traders have full control but bear unlimited personal liability, while partnerships involve shared responsibility and decision-making among partners. A limited company offers the advantage of limited liability, protecting personal assets from business debts, but requires more extensive administrative duties and regulatory compliance. If you decide on a limited company, you must register with Companies House, ensuring legal recognition and compliance.
Securing financing for your Startup
Securing financing is also a critical step in launching your business. This may involve seeking investment from venture capitalists or angel investors, applying for business loans from banks or other financial institutions, or utilising your own personal savings. Properly addressing these financial needs is essential to ensure you have the necessary resources to start and sustain your business operations.
At this stage in your business’s journey there are many decisions to be considered and taken and it can all feel rather daunting and even lonely. At JMB Accounting we can be there every step of the way to offer guidance and support so you never need to feel isolated.
Opening a business bank account and selecting the right accounting package for your startup
Setting up a business bank account and organising accounting software systems for your new business is really important for a number of reasons. A dedicated business bank account separates your personal and business finances, ensuring clear and accurate financial records. This separation not only simplifies tax preparation but also enhances the credibility and professionalism of your business. Additionally, a business bank account helps manage cash flow effectively, allowing for easier tracking of income and expenses.
Implementing accounting software further streamlines financial management by automating tasks such as expense tracking. It provides real-time financial insights, enabling better decision-making and strategic planning. Well-organised financial systems also ensure compliance with tax regulations and reduce the risk of errors and penalties. By establishing these financial foundations early on, you set your business up for long-term success and stability.
The team at JMB Accounting can provide you with advice and recommendations when it comes to setting up a business bank account and choosing the right accounting software for your business.
Professional and Approachable Accounting for Startups
At JMB Accounting we pride ourselves on our professional and approachable service. We have been assisting our clients during this very important first phase of their business for many years in Hampshire and West Sussex, advising them on their business plans, company structure, investment advice and accounting software, so we have heaps of experience.
Don’t just take our word for it, though. Here’s what our clients say:
“The Team at JMB Accounting have been so supportive and helpful in all areas of my business. They have provided sound advice across a number of issues and are now in the process of taking me step by step into the digital age by helping to transfer my bookkeeping from Excel to Quick Books. This will improve both my efficiency and reporting processes. I could not recommend Jan and her team more highly.” John
“I have used the services of JMB Accounting for 12 years and have always found the team professional, courteous and very knowledgeable. They have taken the time to understand my business and how it works in order to best support my financial needs. My account manager is always on hand if I have a query and management and annual accounts are turned around quickly with simple concise explanations when needed.” Belinda
So if you’re ready to get started on your new business idea, get in touch with us today.