0845 606 9632
Startup Accountants2023-11-22T09:27:48+00:00

Accountants for Startups

The Smart Accountants, are a team of specialist accountants & tax advisors who can support you in starting a new business.

Starting a new business:

The Smart Accountants, your trusted partner in setting up a new business. We are experienced accountants and tax experts based in Letchworth, Huntingdon and Cambridge. If you’re an aspiring entrepreneur we’re here to provide comprehensive support and guidance on your exciting journey of starting a new venture.

Expert advice at your fingertips:

With our team of experienced accountants and tax advisors, we offer a range of services designed to help you navigate the complexities of the business world with confidence and ease.

Your dedicated team will always be on hand to answer any question you have about your startup business, providing advice to help your business grow and prosper.

Support that grows with you:

We can support you right from the beginning, from company formation, through to becoming an employer, growth and expansion, all the way to exit.

We will get to know you and your business so that we can offer proactive advice about the issues or opportunities within your industry.

Our comprehensive services, allow us to offer you the support you need as you need it, and can be tailored to suit you and your business.

How we support startups:

Business Structure and Registration:

Choosing the right business structure is crucial for long-term success. Our knowledgeable team will guide you through the options available, whether it’s a sole proprietorship, partnership or limited company. We’ll help you understand the legal and financial implications of each structure, ensuring you make an informed decision that aligns with your goals and circumstances. We’ll also handle all aspects of business registration, including filing the necessary documentation with Companies House and HMRC.

Business Planning and Financial Projections:

Having a solid business plan serves as a roadmap for your entrepreneurial journey. You can outline your objectives, target market, pricing strategy and financial projections using the template here: Write a business plan – GOV.UK (www.gov.uk)

We’ll work closely with you to understand your vision through conversations with you and your looking at your business plan, in order to advise you on next steps, help you look for potential investors or lenders for your business, and support you in reaching your goals.

Bookkeeping Systems:

Establishing a robust bookkeeping system from the start is vital for accurate financial record-keeping. Our team will help set up efficient systems, recommend appropriate accounting software, and provide training to ensure you can maintain accurate financial records. Where possible we use Xero, online accounting software, so you can get a real-time view of your cashflow on any device and make informed business decisions on live data. With organised and up-to-date books, and real-time insights, you’ll have a clear picture of your business’s financial health and be well-prepared for tax obligations, financial reporting, and making informed business decisions.

Tax Planning and Compliance:

Navigating the complexities of business and personal taxes can be confusing for a new business owner. Our expert tax advisors will develop a proactive tax strategy tailored to your business and personal circumstances, helping you optimise your tax position whilst ensuring compliance with applicable tax laws and regulations. We’ll guide you through common tax planning matters such as whether to register for VAT, how to become an employer, how to draw money from your business tax efficiently and what costs you can claim through your business.

Financial Analysis and Reporting:

Monitoring and analysing financial data is crucial for measuring your business’s performance and identifying areas for improvement.

With Xero you can have access to real-time financial data and business performance at your finger tips. Our team will help you interpret the data, identify key performance indicators, and can provide management accounts on a regular basis to help you make informed business decisions.

Business Growth and Expansion:

As your business grows, we’ll be there to provide ongoing support and guidance. Our experienced advisors can assist with financial forecasting, budgeting, and identifying opportunities for growth and expansion. We’ll help you analyse market trends, evaluate investment opportunities, and develop strategies to take your business to the next level.

How we can support you:

At The Smart Accountants, we understand that starting a new business can be both exciting and overwhelming. With our comprehensive range of services and expertise, we’ll be your trusted advisor every step of the way.

Let us handle the financial aspects, allowing you to focus on building and growing your business with confidence.

Contact us today to schedule a free consultation and discover how The Smart Accountants can support you in setting up your new business. Together, let’s turn your entrepreneurial vision into a successful reality.

Startup FAQ’s

The Smart Accountants can help you understand the tax and legal implications of different business structures in the UK, such as sole trader, partnership, or limited company. We can provide advice on the most suitable structure based on your goals, ownership flexibility, liability preferences, and tax efficiency.

The registration process includes choosing a business name, registering with Companies House (for limited companies), setting up a company bank account, and registering for taxes such as Value Added Tax (VAT) or Pay As You Earn (PAYE). The Smart Accountants can assist you with all aspects of the registration process.

A business plan outlines your goals, strategies, target market, financial projections, and more. It serves as a roadmap for your business and can help secure funding from investors or lenders if required.

The Smart Accountants can help you develop a comprehensive business plan that includes financial forecasts, budgeting, and analysis. We can assist with identifying key performance indicators (KPIs), and ensuring your plan is realistic and aligned with your financial goals.

There are a few different ways you can finance your startup, these can include self-funding, or borrowing from friends and family, equity financing; such as angel investors or venture capital, government grants or funding schemes and crowdfunding.

The correct option for you is dependant on your individual situation, including what stage your business is at and what funding is available local to you.

The Smart Accountants can help you assess your financial needs and develop a funding strategy. We can assist with preparing financial projections, creating loan applications, exploring government grants or funding schemes, and evaluating potential investors. We can also advise on equity financing, crowdfunding, or self-funding options.

Consider factors such as target market proximity, competition, accessibility and cost of rent. The Smart Accountants can analyse the financial implications of different locations. We can help you evaluate factors such as rent or property costs, business rates, proximity to suppliers or target markets, transportation infrastructure, and local tax incentives.

Intellectual property (IP) can be protected through various ways such as patents, trademarks or copyrights. While The Smart Accountants may not be IP specialists, we can provide guidance on the financial aspects. We can help you assess the value of your intellectual property, understand potential tax implications, and incorporate IP protection costs into your financial plans. We also work with some amazing partners who can support you from a legal perspective.

Marketing strategies vary based on your target market, industry, and budget. Common strategies include social media marketing, content marketing, website and search engine optimisation (SEO), email marketing, and networking. The Smart Accountants work with partners who can help you develop a marketing strategy and marketing budget.

Clearly defined job roles and requirements, developing an attractive company culture, offering competitive compensation and benefits, and implementing effective recruitment and retention strategies are crucial in attracting and retaining the right talent. The Smart Accountants can advise on payroll taxes, benefits, and compliance with employment laws. We can also provide insights on incentivising and retaining employees through effective compensation packages and performance-based bonuses.

At The Smart Accountants we have a team of expert tax advisors who are well-versed in UK tax regulations and can assist with tax compliance. We can help you understand your business’s tax obligations, including corporation tax, VAT, employer taxes, and personal tax. We can provide tax planning advice to minimise your tax liability and ensure compliance with changing tax laws.

  • Keep accurate and up-to-date financial records.
  • Separate personal and business finances.
  • Implement a cloud based accounting software such as Xero.
  • Track income, expenses, and cash flow regularly.

As Xero experts, the Smart Accountants can set up a robust bookkeeping system tailored to your business needs. We can handle day-to-day financial transactions, reconcile accounts, track income and expenses, and generate financial reports. We can also offer financial analysis, cash flow management, and advice on optimising your financial processes.

The necessary insurance coverage depends on your industry and specific risks, but common types include employer’s liability insurance, public liability insurance, professional indemnity insurance and key person insurance. The Smart Accountants can work with insurance brokers to assess your business risks and recommend appropriate insurance coverage. We can help you understand the financial implications of different insurance policies, such as professional indemnity insurance, public liability insurance, employer’s liability insurance, or property insurance.

  • Limited resources and funding.
  • Competition in the market.
  • Uncertainty and risks associated with a new venture.
  • Finding and retaining talented employees.
  • Regulatory compliance and legal issues.
  • Managing cash flow and financial stability.

The Smart Accountants can help you identify potential financial challenges and risks, such as cash flow shortages, inadequate financial planning, unexpected expenses, or compliance issues. We can offer financial analysis and advice to mitigate these risks and create contingency plans to ensure your business’s financial stability.

  • Identify your unique selling proposition (USP) or competitive advantage.
  • Focus on exceptional customer service and building strong relationships.
  • Offer innovative products, services, or features.
  • Provide a superior user experience.
  • Develop a strong brand identity and effectively communicate your value proposition.

  • Monitor and forecast cash flow regularly.
  • Reduce unnecessary expenses.
  • Offer incentives for early payment from customers.
  • Maintain good relationships with suppliers and negotiate favourable payment terms.
  • Secure access to additional funding sources, such as a line of credit or business credit cards.

The Smart Accountants can help you forecast and manage cash flow effectively. We can assist with developing cash flow projections, monitoring receivables and payables, optimising inventory management, negotiating favourable payment terms with suppliers, and implementing cash flow management tools or strategies.

  • Understand your costs, including production, overhead, and profit margin.
  • Research the market and competitor pricing.
  • Consider value-based pricing by assessing the perceived value your product or service offers to customers.
  • Test different pricing strategies and gather feedback from customers.

Yes, having a shareholders’ agreement is often recommended when there is more than one shareholder in a company. A shareholders’ agreement is a legally binding document that outlines the rights, responsibilities, and obligations of the shareholders in a company. It helps to establish clear guidelines for how the company will be managed, how decisions will be made, and how potential conflicts will be resolved.

Here are some reasons why you might want to consider having a shareholders’ agreement:

  1. Clarifying Ownership and Roles: The agreement can outline the percentage of ownership each shareholder has and define the roles and responsibilities of each shareholder in the company.
  2. Decision-Making: The agreement can specify how major business decisions will be made, such as changes to the company’s structure, the appointment of key executives, or major investments.
  3. Conflict Resolution: The agreement can provide a mechanism for resolving disputes and disagreements among shareholders. This could include processes for mediation or arbitration to avoid costly legal battles.
  4. Exit Strategies: The agreement can address what happens if a shareholder wants to sell their shares, retire, or leave the company. This can help prevent disruptions and ensure a smooth transition.
  5. Non-Compete and Confidentiality Clauses: The agreement can include clauses that prevent shareholders from competing with the company during and after their involvement, as well as maintaining confidentiality.
  6. Preventing Unwanted Transfers: The agreement can include provisions that give existing shareholders the first right to purchase shares if another shareholder wants to sell or transfer their shares.
  7. Protection of Minority Shareholders: If there are minority shareholders, the agreement can include provisions to protect their interests and ensure they have a say in important decisions.
  8. Succession Planning: If the company’s ownership is meant to pass to heirs or family members, the agreement can outline the process for this transition.
  9. Investor Protection: If the company attracts outside investors, the agreement can define how their interests are safeguarded and how they can exit the investment.

Keep in mind that a shareholders’ agreement is a customisable document that can be tailored to your specific needs and circumstances. It’s typically drafted with the assistance of legal professionals who have experience in corporate law. While it’s not a legal requirement, having a well-drafted shareholders’ agreement can help prevent misunderstandings, conflicts, and legal disputes among shareholders, ultimately contributing to the long-term stability and success of the company.

  • Stay informed about market trends and changes in consumer behaviour.
  • Continuously innovate and improve your products or services.
  • Monitor and analyse data to make informed business decisions.
  • Stay connected with your customers and adapt your strategies based on their needs.
  • Foster a culture of learning and encourage employees to embrace change and adaptability.

The Smart Accountants can help you assess the financial impact of market changes and develop strategies for growth. We can analyse financial data, perform cost-benefit analyses, and provide insights on financial forecasting and budgeting to support your business’s adaptation and growth.

Remember that each business is unique, so it’s important to seek professional advice and conduct thorough research specific to your industry and location to address your particular needs and challenges.

“We’ve always found the team to be responsive, helpful, and proactive in suggesting ways for us to improve our processes. In particular, we have been happy with the move from Sage to Xero, which has made our lives much easier as we grow our business.”

Jack Waley-Cohen, what3words

“One of my previous headaches was always the absence of reliable management information and that often consumed my time unnecessarily. Since working with the team, they have implemented new systems, enhanced existing systems and they provide information on a monthly basis which is accurate and clearly communicated. This allows me to spend time doing what I should be doing.

Combine that with their sector expertise, knowledge and professionalism we would have no hesitation in recommending their services to anyone.”

Sheldon Paule, Cameron Kennedy
total negotiation group

“As our accountants and advisors, the Smart Accountants have always been on hand to support our business but recently they helped the sale of our business to an Employee Ownership Trust. Ultimately this transaction helped us with obtaining a fair price for the business, ensuring long-term succession, and rewarding our employees. The team supported us from the very initial advice and planning stage right through to the implementation and were on hand to offer their expertise throughout.”

Mark Cranstoun, Total Negotiation Group
db sharp & sons limited

“The team have helped us grow and become more professional. Dave has been invaluable in advising us. He has helped our accounts team so much and they now absolutely love Xero!”

David Sharp, D.B. Sharp and Sons Limited

“We recently explored our succession routes with UHY and ultimately, transitioning to an EOT with their assistance was the most attractive route. The key reasons behind this were it allowed us to retain our independence by not selling to a competitor, provide control to our founders over when and how to exit the business, and the ability to combine the EOT with EMI share option schemes. Of course, our staff were also a key reason and the EOT allowed us to reward them without them having to buy shares with their own funds and to increase engagement through this sense of ownership. Throughout the process, UHY were able to offer expert EO advice, which combined with their understanding of our business and partners to take care of the legal side, made the whole implementation process very smooth.”

Coda Music

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The Next Steps

If you would like to speak to us regarding starting a new business, please call us on 0845 606 9632, email us at team@thesmartaccountants.co.uk.  Alternatively, please complete the contact form below and a member of our team will be in touch shortly.