Top Business Tips from an Accountant
- British Business Bank
- 40 minutes ago
- 8 min read
As a small business or start-up owner, handling your finances can be challenging. But don’t worry if you’re unfamiliar with accounting, you’re not alone. Over a quarter (26%) of small business owners claim to have little to no accounting knowledge. We’re here to help make things easier with guidance from AJ Dosani, a partner at Ace Accountancy.
Read on for essential guidance on starting and running a business, including:
how to form a business
trading status and banking information
accounts and record keeping.
Plus, we’ll reveal some of the top business tips you should know.
1. Setting up a business – company formation options
One of the main questions start-up founders have about which business type they should choose. Here are three of the most common options business owners go for when starting their own business:
Sole trader
This is the simplest and most common business structure in the UK. As a sole trader, you are personally responsible for business debts but can keep all profits after tax. Your business assets are not separate from your personal ones. As a sole trader, you must register with HM Revenue and Customs (HMRC) and fill out a self-assessment tax return annually.
“You are the business, the business is you, and you pay the taxes,” says AJ.
“The business pays its taxes once a year, and you file a tax return by the yearly deadline of January 31st – it’s nice and simple.”
In most scenarios, the sole trader route is the easiest for start-ups. This is partly because moving from a sole trader to a limited company can be fairly straightforward.
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