The decision of starting a new business is not something to be taken lightly. It involves a lot of upfront work to get you started – and that is before you begin trading. More often than not, freelancers get put off thinking about starting their own business because it seems daunting.
Building a business is similar to the construction of a building – you have to start from the foundations and make sure everything is set properly to build upon it. However, it is still fairly common for some business owners to go completely in the opposite direction, only to discover they have issues not just with their accounting but other areas not set up correctly.
Let’s look at your starting process and check them off as you move along.
First Things First
The first step would come in choosing your identity. Are you staying a Sole Trader or making the shift towards a Limited Company? You will need to look into which suits your identity better and make the decision before you proceed with anything else.
The second step is researching what type of insurance you would require for your field of work. These two areas will then open the door for your business plan. It may feel that you have everything in your head and it makes sense, but your business plan mapped out is an essential part of the process of starting your company. It does not have to be finely detailed – it can be a loose plan as a minimum, but you will need one to work with.
Banking and Bookkeeping
No matter if you choose to be a sole trader or go in the direction of becoming a Limited Company, you need to make sure you have a business bank account separate from your regular bank account. This not only helps you keep track of your ingoings and outgoings but provides an easier trail for your taxes at the end of the year.
You will also need a bookkeeping system – such as Xero. Xero is a fantastic piece of software that provides an easier way to keep on top of your business financials when you learn how to use it. Learning the system can be done in as little as a day. The one thing about Xero is that you have to use it correctly, otherwise, it can be costly to you.
You can always hire bookkeeping services to handle your business financials and record keeping – some also provide training on Xero – who can also act in the ways that an accountant would. Not only can they provide a lot of help with tax returns and bookkeeping, but they also act as a valuable source of information and regulations that help your business to grow.
From this point on, bookkeeping services in Manchester will be able to help you structure the rest of your business with such areas as payroll outsourcing services and keeping you in line with official bodies such as HMRC and Companies House.
Contact the team at Pebbles Bookkeeping today to get small business bookkeeping solutions done the right way.