Call our team +44 (0) 207 566 3939


3 key financial rules for a new start up

3 financial rules for new businesses

It is a somewhat chastening fact that when you begin to realise how difficult it is to own a business, you must focus not only on the core business of the company but also towards those that involve the accounting aspect too.

For most people, the word accounting can generate fear or concern and this feeling is probably stronger in the case of young entrepreneurs. Bad accounting in the short term cannot affect your business and you can, in time, correct the flaws. However, in the long run, you can risk being audited and lose control of the company, which would potentially result in large losses of money.

According to Entrepreneur Magazine, to prevent this from happening, there are three unspoken rules to take better control of your new business` finances and accounting:

Start on the right foot:

In the same way you check your emails every day or do an inventory every week, start the same habits in the accounting of your business. Set yourself up notices or memos on a calendar monthly, or at least once a month, the frequency will depend on you. This way, the routine will become engrained and the finances will remain stable at all times.

Learn the accounting language:

Sometimes the biggest obstacle is the accounting terminology. This is because when we hear words like ‘chart of accounts`, ‘more passive`, ‘active workbook`; it`s easy to not understand completely. In these cases it is advisable to take some time to understand accounting basics and for this, the internet can be a very useful tool.

Rate good advice:

The chances are, if you spend a lot of time trying to find an error in your accounting, you will eventually find the solution. The reality is though, that you have a business to run and there is a degree of urgency about the declaration of taxes you must do both monthly and annually. There`s no need to worry though, there are many resources out there to help, such as those at Capital Office.

Ultimately, the business of accounting is not as scary as you might think and can be more fun than it sounds. After all, it is what allows us to see the growth of our business.

Your Virtual Office London

If are thinking about starting a business, or if you have already taken the leap from idea to reality why don’t you speak to an accountant? We have qualified accountants who are experienced in working with small and start up business. They are happy to help explain the requirements needed when you start a business, information is power and we can help get your business funcitoning correctly for a long and prosperous future.

Related Category Posts

Your Company Registration Number Can Be Found Here

Your Company Registration Number Can Be Found Here

Your Company Registration Number Can Be Found Here After spending a significant period of your time trying to start a business, you may have finally obtained a registered office address and set to further your blooming empire. However, when you’re fresh out of the...

read more
Where Do I Send My Stock Transfer Form?

Where Do I Send My Stock Transfer Form?

Where Do I Send My Stock Transfer Form? Congratulations! You’re either a newly formed business, or you’ve been running your brand from a reputable business address for some time. But with the plaudits comes the pressure; not least the overwhelming number of...

read more
7 Important Roles of a Company Director

7 Important Roles of a Company Director

7 Important Roles of a Company Director You may be the proud owner of a new business, functioning from a credible business address, and envisioning a bright future ahead. But if you’re unsure about exactly what a company director’s role entails, then you may...

read more

Capital Office Ltd is registered in England and Wales: Registered Address: Kemp House 152 – 160 City Road London EC1V 2NX

Company Number: 06294297 | VAT No: 976201416 | ICO No: ZA084808 | Anti-money laundering registration number: XZML00000125126

© Copyright 2019 Capital Office Ltd - All Rights Reserved

Please click here to view the latest businesses using our address without authorisation.