My New Company Is Registered - Now what?
If you completed the process of setting up your company, then firstly: congratulations! You may wonder what are the next things to do. If this is your first business, then you may not know what to do to remain compliant with tax regulations. That is where we can help you. Here are some of the first items you’ll next need on your to-do list.
Set Up Business Bank Account
If you used to receive payments to your personal bank account, you will need to open a bank account solely for your new business and draw a salary. You would be able to take money out when you want to, but it would need to be documented differently. When you send yourself money, you need to make sure that it's enough money to do it, and you need to make sure that it says dividend when it's a dividend on the transfer from the bank to yourself. For small purchases, consider a company credit card or a Pleo/Soldo account rather than using personal accounts.
Set Up Accounting Software
So much has changed over the years when it comes to accounting software, to the point of making life so much easier for business owners. I would recommend Xero. If you want to partner with us, we can get you set up with a licence with a 20% discount, which will already save you money. However, the choice is yours. There are other softwares available such as QuickBooks and Sage. The benefit in using software is that you get more than just recording your inputs and outputs. You can do all of your invoicing from it, set up Stripe, set up bank payments direct to your bank account, and even automate the chasing up of payments. This will streamline your day-to-day tasks, which is always a plus when running a business.
What’s more, you’ll be able to deal with the following more easily:
MTD
VAT
Sending customer statements
Chasing debtors
Ease of customers paying
Overview of your financials, reporting.
And keep everything up to date! The reports that you can get from software are not worth much if the information to create them is out of date.
Set Up Business Insurance
This is not necessarily something we can help you with, but it is something we recommend for you to do sooner rather than later. Be sure to get the type of coverage that your business will need if you run into problems, such as a fire, storm damage, lawsuits, or theft. Many wonderful businesses fold when it comes to unexpected financial loss. Insurance is definitely something that helps our clients sleep easier at night. What you would need to do right away, is to transfer your existing insurance policies over and consider additional cover for your business.
Inform Suppliers And Customers Of New Bank Details
All of your suppliers and customers need to pay to, and be paid from, the new business bank account. This is probably one of the main hurdles for new businesses, because people generally don't change what they do. If you have a client with a standing order set up, they may not want to change it immediately which means that you may end up continually paying these payments into your old bank account yourself.
Another aspect of this is to ensure that anything business-related that you currently pay for from your personal account needs to move to your business account and should be in your new company's name. This could be your telephone, data plans, salaries, office supplies, and more. If you’re not sure what needs to move, be sure to ask us for advice.
Set Up Tax
Another important business aspect will be tax. When you get to the VAT threshold, we'll need to look at submitting VAT returns. You will also need to pay corporation tax in 2/3 years’ time. This will need to be a quarterly reporting system from your side, and is where the aforementioned accounting software comes in handy since you will have all of your records electronically in Xero, or whichever software you choose. If anybody needs to look at your records, you simply give them access to it.
Set Up A Cashflow Forecast
Have a cashflow forecast to know what your costs are, and what your income is likely to be. This can be done manually, in a spreadsheet, or using software. Your forecast could be for a month, a year, or 3, as long as it works for you. We can help you with a cashflow forecast, be sure to contact us.
Transfer Your Assets
As soon as you can, you should transfer your personal or sole trade assets over to the company. This can include computer equipment and vehicles. When in doubt about what needs transferring, just ask.
VAT
We can set up your VAT scheme and process your VAT Returns for you. For this, you will want to consider when you might need to or want to VAT register.
Your options are:
Cash vs accrual based method
Flat rate scheme vs standard VAT
Making Tax Digital means you will also need that software we mentioned above.
Corporation Tax
While we can’t put the money away for you, we can submit all of the necessary forms that you need. Always remember that there will likely be a CT bill 9 months after your year end, so make sure you budget for 19% of your profits to still be in reserve to cover this at a later date.
Payroll
When it comes to paying yourself and others, we can do all of the set up and processing, and give you tax advice as well.
You’ll need:
Payroll (software, PAYE registration, processing each month);
Pensions (Set up, processing);
HR Services advisable we can put you in touch with someone for HR support;
Contracts of employment can be handled by your HR advisor;
Employers liability insurance;
Dividends & tax planning;
Personal pension contributions/company contributions for yourself.
We can get you in touch with a financial advisor who can help with your pension planning.
Accounting
As soon as you have your new company, there is a countdown. Accounts are due at Companies House 21 months from date of incorporation. Management reports are worthwhile to see how you are doing through the year. If in doubt, just ask your accountant - there are no silly questions and you shouldn’t be afraid of asking as it’s all included in the price with us if you decide to take us on.
IT, Websites, And Email Addresses
Make sure that your IT systems are fit for purpose and designed to help you run your business efficiently. At the very least, consider speaking to an IT specialist who can give you an idea of what you might need to future-proof your business. We can put you in touch with our IT partners.
Marketing
Consider who your potential customers are, how to reach them, and how to convince them to work with you or buy from you. A strategy is often the best place to start, and if you don’t know how or need fresh ideas, reach out to someone who can take this off your plate. We have a marketing partner that would love to help.
Finance Products
How much finance does your business need? Where is this coming from? How will you pay this back? Arranging funding doesn’t have to be technical and doesn’t have to all fall on your shoulders. There are various platforms or brokerages available who can put your case forward on your behalf - at whatever stage your business is at. Would you believe we know some people who can help here too?
There are also many other tasks that await you in your new role as owner of a new company, but we’ll dive more into that as time goes by. If you need help with any of your accounting so that you can focus on growing your new business, then be sure to give us a call and hear how we can help you set up your business for financial success.