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Accountants in Birkenhead – essential for startup business survival

It is not easy to survive in business. Unless the finances are sound, a business can go under. There are invoice payments to chase, slack periods to cope with, staff to hire and pay, and tax to sort out.

The difficulties of surviving in business have not deterred Birkenhead entrepreneurs from starting businesses. Wirral Council is actively encouraging more business investment into the area. They see Wirral as an essential part of the Northern Powerhouse project which is regenerating the North of England’s economy.

Don’t do it yourself

Many owners of business startups feel that they can handle the finances themselves, but in reality they lack knowledge about accountancy or the tax laws. They often end up paying too much or too little tax, and could face fines and penalties. Accountants in Birkenhead can save a business money and the stress of figuring out the finances.

Starting up

When starting a business, there are financial decisions to make that an accountant can help with. First, there is the business structure, whether to be a sole trader, partnership, limited liability company, or corporation. Each business structure has its individual legal, financial, and tax regulations to comply with.

A startup needs a business plan that includes financial projections that cover sales, expenses, income, and profit. If needing a loan or finance from investors, a business plan is essential. An accountant can make sure that all the figures in the plan are realistic and achievable. The accountant can also advise on the financial implications of investors’ proposals, or any loans that the startup needs.

An accountant can set a business up with the best accounts software for them, one that is in compliance with GDPR and Making Tax Digital.

Day-to-day operations

After the business is up and running, most of the day-to-day accounting is done through the accounts application. It is a good idea to have this checked regularly by the accountants who will also be able to spot any impending cash flow issues before they become serious issues.

VAT is now processed digitally every three months, and the accountant can make sure that this is done on time and accurately. In the future, other tax returns will be submitted quarterly, but currently, at the financial year’s end, the annual financial records must be submitted. The accountant can supervise this to make sure that it is accurate and the correct expenses have been set against the tax liability.

Expansion

Most entrepreneurs want to expand their business as soon as they can. An accountant can help business owners find new income sources and help with the financial issues of acquiring new premises or equipment. Many businesses have to invest a lot in expansion plans and this can affect cash flow. If the extension is too rapid and too soon, it could affect the financial viability of the business.

Unless a Birkenhead business remains profitable, it will fail. Accountants in Birkenhead are here to help prevent that happening.

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