Starting Your Own Company – Why An Accountant Is Needed

 

It is crucial to recognise when a hobby becomes a business, and running your finances professionally becomes a necessity. Over the last year, we have seen a huge number of people decide to take the leap and start their own business, with a reported 407,510 new businesses forming in 2020 alone. In fact, history tells us that after a period of economic downturn or a recession, it often results in an increased uptake in self-employment. Self-employment has contributed strongly to employment growth in the labour market, with self-employed people representing 15.3% of employment overall in the UK.

Influencers, vloggers and bloggers are examples of new professions that can be started with very little upfront costs and from the comfort of your own home. This makes it a very attractive role for many during a time where there is a decline in employment, evidenced by the Office of National Statistics (ONS) unemployment rate for adults at 4.9%. Many may start this as a hobby or a side project, however, if you are earning money online, from the likes of royalties, advertising, appearance fees, or if you have received gifted items, products or hotel stays, then you are likely liable to be taxed and will need to submit a tax return.

Behind every good business is a great entrepreneur and behind them, you’ll find a reliable and efficient accountant. Accounting helps a business stay in full control of its finances, while minimising business taxes and other overheads. People with a talent for running a business may not have the knowhow, or the time, to successfully and meticulously handle the accounts. A good accountant can do far more than just free up your time to spend on situations that require your valuable expertise.

Businesses, or individuals, that hire a good accountancy firm can also benefit from a wide range of other services. For example, working with Nordens’ Strategic team will allow you to save money through strategic planning, managing growth by monetising and developing your brand, as well as planning ahead with cash flow forecasts. Cash flow management is very important for your business, as even a highly profitable business without sufficient cash will soon collapse. Using expert analytics, forecasting and presentation skills, it will help to visualise any major issues your business may face due to economic uncertainties, trend changes and new regulations that could affect or impact profitability or sustainability.

Do I need an accountant or bookkeeper?

Accounting and bookkeeping can seem rather confusing for many. It’s important to ask yourself these questions;

  • Do you feel confident regarding your finances?
  • Do you have a thorough understanding of bookkeeping?
  • Can you competently read a set of accounts?

If the answer to any of these is no, or the thought of doing your tax returns or your accounts makes you nervous, then an accountant will be a huge benefit to you. When your business has grown beyond a certain size, it is good sense to hire a specialist to handle the accounting. If you’re ready to take the plunge and go self-employed, assistance with the formation of your new company is crucial. Obtaining a tailored online accountancy package, which is specific and appropriate to your business and the unique challenges you’ll face, could be the difference between success and failure.

Every business, irrespective of organisational structure, has to carry out bookkeeping functions. Through the use of comprehensive bookkeeping, your business will be able to keep track of all its financial activities, ingoings and outgoings. With this information readily at hand, management will be able to make informed decisions regarding operations, investments and loans. Therefore, it is key that you find the best bookkeeping service for your business.

I’m at the stage of employing help, how do I pay my staff?

No matter the size of your business, it is recommended that you outsource a payroll program. Submitting Real Time Information (RTI) and generating payroll records for your employees for submission to HMRC, not only benefits you but also your employees. Businesses with employees need to operate payroll effectively and in-line with payroll regulations. Not doing payroll properly can result in fines, unhappy employees and huge backdated tax bills which can incur huge costs in the long run. It doesn’t matter if you’re hiring a part-time assistant or a full-time manager, if you are unsure about how the payroll process works, it is advisable to seek help from our expert payroll team.

Having an accountant is not just about looking after your money, it can also help you save money too. Claiming expenses at the end of the year is an important aspect of accounting for small businesses, as it enables you to cover up most of your costs. Keeping track of your expenses, whether manually or digitally, will enable you to save huge amounts that you maybe weren’t previously aware of. For example, if you use a phone, laptop, vehicle, software or even applications for sole business purposes, it is possible to claim back on these and seek a rebate from HMRC.

These are just some of the ways an accountant can help you and your business achieve its goals and expand its growth. We hope this has outlined to you some of the steps that an accountant can benefit your new business. If you require any more information on starting your own business and the processes around it, or anything accounting related for that matter, please don’t hesitate to get in contact with us at Nordens where one of our trusted advisors would be happy talking you through your query.

 
Beyond Accountancy

At Nordens, we're more than just accountants - we're business experts who can help you achieve your biggest goals.

Nordens Strategic

Our specialist strategic division at Nordens boasts some of the leading entrepreneurial business minds in the country. We cater towards delivering consistent success stories, whilst helping businesses achieve above and beyond their initial goals.

Through highly-tailored guidance, coaching and advice, Nordens Strategic are able to define exactly how your business can reach new levels of success.

Regardless of how you define ‘success’ for your business, our strategic service is guaranteed to bring about real and lasting change. By partnering with some of the UK’s top business coaches, we’ll steer you along the path to a greater future.

Accounting 2 You

Every business, no matter how big or small, needs to make the right decisions, and how to best manage your accounts can put huge question marks over your business. Accounting2You is here to take that pressure off and provide you with all the answers you need.

Our bookkeeping branch offers a fully inclusive, comprehensive service that you can trust. Since 2005, our specialist bookkeepers have been successfully managing the accounting of both individuals and small businesses.

With experts in payroll analysis, credit control and financial recording, Accounting2You will lead your business efficiently, and with real purpose, towards a prosperous future.

Voted as EXCELLENT - 9.9 out of 10 based on 167 reviews

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Chris Dyer

Director - Metro Bank

Nordens are always very easy to deal with and extremely professional and efficient. I would have no hesitation in recommending them to my clients for their accountancy needs, no matter how complex they may be.

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Jamie Brown

Co-Founder - Chicmi Limited

Very good to work with - the team go above and beyond to make the accounts easy and efficient. They're all super friendly and a joy to work with.

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Simon Rose

Director - Rose Opticians

I have been using Nordens Chartered Accountants for 5 years and very happy with the service provided. All members of the team are very knowledgeable and have a wealth of experience which has proved very beneficial to my organisation

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Rebecca Bossick

Founder & Director - Physio LDN

Very easy to contact and put me in touch with the right person whenever I need to ask any questions. Extremely knowledgeable and can help me manage my various businesses whenever I need.

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James Aconley

Principal - Pauline Quirke Academy

Great accountants, always available to offer advice. The team have transformed my business.

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Christopher Wilce

Founder - Dataphone

Having worked with Nordens over the last 5 years, not only to look after my annual accounts but they have also provided outstanding professional advice. They have guided me through a Company share buyback with clear and objective advice. We have also been using Nordens strategic services for a couple of years, which has helped bring about significant improvements that exceeded my expectations. With experience of working with several local accountants over my 29 years in business, I’m very pleased with the service I have received from Nordens.

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Dave Hodges

Director - Linekers

Trusted our business with Nordens for over 10 years now and watched the company grow into the successful innovative business it has become today. Deservedly so. Every aspect of financial advice we need is always given promptly and with a smile. We have total confidence in all aspects of advice Nordens give. If you are looking for accountants, its a no brainer!

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Tony Charles

Founder - Foundation Sports Limited

A fantastic, modern, vibrant firm that care about the clients and their staff in abundance. It is rare to find an Accountancy firm with such vibrance and focus and relationships. It is no wonder they win award after award in their field.

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Peter Horlock

Managing Director - Prime Time Boilers

I have been with Nordens for many years now and they are a great accountants.

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Simon Cushing

Founder - Vivid Finishes

We have used Nordens for the last 5 years and have had a great service throughout. The guys are very passionate about what they do and have played a part in the growth of our company, highly recommended.

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Andrew Martin

Managing Director - AMD Interior Architecture

Great Service at Nordens from a friendly very approachable team Particularly Kirsty Willis and Joe Sword who have been helping us since we started the business in 2016.

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James Robinson

Director - Forma London

Nordens provide a first class service. We moved to Nordens last year and have been impressed with the level of service provided. Keep up the good work!

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  Why I Founded Nordens
Accounting 2 You

In November 2002, having sold our other business interests off earlier in the year, I decided to set up Nordens Chartered Accountants. The easy part was knowing how to do it, as I had established and built a smaller practice a few years earlier. The difficult part, for me, was not following the traditional accountancy path. Having run businesses, both successfully and unsuccessfully, I wanted to help business owners resolve their short term problems and work with them to achieve their longer term goals. Business has always been my interest and I love that I can help business owners achieve what seems like the impossible every single working day.

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Mark Norden
Founder

We're Professionally Certified

Our limited company accountants have a range of qualifications from The Institute Of Chartered Accountants (ICAEW) to the Association of Chartered Certified Accountants (ACCA). We worry about the bye-laws, regulations and ethical guidelines of the ACCA so you don’t have to! That makes us an ACCA-accredited employer as well as a Professional Passport-accredited one!