Top accounting tips for start-ups

Cope & Co Accountants in Wirral provide accountancy services across Merseyside. Here, we offer our top accounting tips for start-ups.

Get a business bank account
As a limited company, it’s a legal requirement to maintain a bank account separate from your personal one, since the company is a distinct legal entity from its directors, even if you are the sole director. At Cope & Co, we strongly recommend setting up your business bank account as soon as you register your limited company with Companies House.

Separate personal and business finances
It's crucial to keep your personal and business finances separate from the outset. Using your personal debit or credit card for business transactions, or vice versa, can create significant complications. By maintaining clear boundaries, bookkeeping becomes more straightforward and cost-effective, and you avoid potential tax issues. Experienced accountants in Wirral, Merseyside, we’ve often found ourselves having to remind start-up clients that all business expenses must be accounted for accurately, and that mingling personal and business finances can lead to costly mistakes in the long run!

Avoid using personal funds for company expensesAs a director, it's essential to act in the best interest of the business, even if you’re the only director. While there is no legal issue with purchasing goods or services for the company and then claiming expenses, it's far simpler to use a business debit card for these transactions. This approach keeps your records clear and organised. If you must use personal funds – for example, if you’ve forgotten your business debit card, ensure you make detailed notes and keep all receipts. Additionally, avoid using company credit cards for personal expenses, as this can complicate your financial records.

Understand your tax obligations
Being informed about the taxes your company needs to pay is crucial. Working with an accountant ensures you won't miss any deadlines, which can result in penalties. It's essential to understand all the tax requirements for small businesses, to avoid unexpected liabilities. Tax is actually a Cope & Co speciality. If you’re based in Wirral or elsewhere in Merseyside, we’re the go-to accountants when you need advice from tax specialists.

Adhere to tax deadlines
You might come across small business owners who take a relaxed approach to tax deadlines, but this can be costly. Late filings or late payments can result in penalties, reducing your business's financial resources. Staying on top of deadlines is vital for maintaining your company's financial health.

For personalised guidance and assistance with managing your business finances, contact Cope & Co, the Merseyside accountants based in Wirral. Don’t just ‘cope’; grow your business with Cope & Co Accountants! Call us on 0151 374 0875 or write to us at enquiries@copeco.uk. Alternatively, visit our contact page to book a free, no obligation call back.

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