Home » An Accountant’s Guide to Handling Your Finances as an Entrepreneur

An Accountant’s Guide to Handling Your Finances as an Entrepreneur

Posted on 11th November 2020 by David Rudd

Entrepreneurs are often required to wear many hats which includes having to manage the finances and taxation of a business. Owners use a variety of methods when it comes to sourcing capital for their business such as loans, crowdfunding and share capital. However, methods on how to effectively understand and manage the financial information of your business are often the last resort for many.

With entrepreneurs already having a lot on their plate, we created this quick reference article to give a quick overview of the key areas you’ll need to focus on and as a new business, taking the right advice is crucial to get you up and running smartly.

A Business Plan

Ensure you have a well-thought-out business plan in place for yourself and for third parties

A business plan is a very useful and widely recommended document that will prove valuable to your business. When it comes to accessing debt, securing investment or analysing your business, constructing a well thought out plan of your businesses goals and objectives will enable you to gain a competitive advantage over those who do not have a plan in place. The benefits of a business plan are that it allows you to identify the business’ long and short term targets, spot potential issues and measure your progress.

The plan should be kept short and only provide the user with what they need to know. It should also be based on realistic inflows and outflows, as over-optimistic business plans will be quickly seen through and business credibility can be damaged.

Our startup advice service can help you to get this in place.

Budgeting

Start using budgets to drive your business decisions

For entrepreneurs, budgeting can help you control your company finances, plan your business costs in advance and prepare for unexpected financial changes.

Budgets are a tried and tested method of improving business efficiencies. Using a variety of fixed and variable income and costs when planning your budget will allow you to evaluate areas in your day-to-day activity which require attention.

Cash flow

Understand your cash flow to prevent running out of money

Monitoring the money that is coming in and out of your business is just as important as monitoring your profit. It is possible to have a high profit and a low cash flow if you aren’t being paid or if you are overspending.

Cash Flow statements can be used to track your finances each month, keeping you up to speed. At Steven Burton & Co, we find Xero very useful for small businesses as it can provide you with a clear overview of your business activity. It is perfect for small businesses, designed to give you a complete overview of your accounts including your cash flow. We draw on the information in the software to help us guide you on your next business decision. But this can also be used by you to keep on top of your finances and operations. Take a look at the range of accounting software we’re experienced with.

Expenses

Record and itemize your expenses to track the running cost of your business

Running a business requires outgoings that should be tracked regularly. Self-employed entrepreneurs can reduce their tax and national insurance liabilities by offsetting tax-deductible allowable expenses, such as office and travel costs, against business profits. Keeping a record of your expenses is a requirement by HM Revenue & Customs and will be required for your self-assessment tax return.

We use Dext (formally Receipt Bank) with some of our clients at Steven Burton & Co, as Dext is a software that allows you to upload your receipts and purchase invoices by simply taking a photo of them. It then creates a PDF back up so you no longer have to worry about losing your receipts.

Professional Advisors

Surround yourself with a team of professionals to help guide you through the legal and financial requirements of running your business

We know how important it is to have a team of dedicated professionals by your side to help with any financial or legal implications that you may face.

Ensuring you have a good accountant that can help make sure you are registered for the right taxes with HM Revenue & Customs (HMRC) is fundamental when starting up your business. Whether that be income tax, VAT, CIS or PAYE, it is important to have these in place to avoid any unwanted communication from HMRC.

Other advisors may include independent financial advisors, lawyers, insurance brokers or even IT specialists. These professionals and others are there to ensure that you have the safety net you need, should you need it. Our team of accountants here are Steven Burton & Co are able to support you with all of your business accounting needs as well as business coaching and growth services.

Simplify accounts

When it comes to handling your finances as an entrepreneur there is a lot to consider. At Steven Burton & Co, we can help simplify your accounting, freeing you up to run your business. As well as Xero and Dext, we can help you manage your Sage and Quickbooks accounts too. We are a team of Chartered Certified Accountants experienced in dealing with new and long-standing businesses. Need a solution? Get in touch with us today.

David Rudd

David is an Accountant with over 15 years’ experience in helping a large number of different business owners in numerous sectors from consulting agencies to every area of construction you can think of.

At home dealing with numerous different types of accounting software from Xero to QBO and everything in between. David is always on the lookout for new technology to help business owners to create more time for themselves and their teams.

With a healthy ambition of never resting on the results of yesterday, David is at his best when working with ambitious business owners who want to improve their businesses for eventual sale.

In his spare time, David is often found cheering on his two boys at football, building Lego (which he pretends is for his boys) or watching the latest TV series on Netflix.

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   LENA James 
 2024-03-19
 
 
  We moved accountants to specifically follow David a number of years ago and have completely changed the running of our business for the better, through planning ahead we have managed to change our circumstances with an over drawn loan account and corporation and tax bills outstanding to a strategically run method of being able to clear the over drawn loan account and balance our other tax liabilities with advice and support from David
We continue to be supported and take advice from his expert knowledge and guidance going forward and would highly recommend the Steven Burton team for your Accountancy needs.
  
 
       
   陈新谱 
 2023-12-12
 
 
  Great service. Helpful and friendly people.
  
 
       
   Vince Strafford 
 2023-10-19
 
 
  We moved our accountancy needs to Steven Burton and Co - specifically with David. It’s been night and day compared to our previous provider - we now have a partner who is helping us to develop our business and in a way that means we have long term security.  Local, accessible and responsive - everything we need in a company that provides business critical services.
  
 
       
   MARK WALSH 
 2023-06-26
 
 
  The team here are fantastic - every detail thought of and explained clearly. I have no hesitation in recommending Steve and the team to any business, be it fledgling or established.
You get what you pay for and more.
  
 
       
   Jo C 
 2023-06-20
 
 
  The team at Steven Burton & Co have been lovely to work with, helping us with our partnership accounts over the last couple of years. They are always on hand to answer any queries we have and are happy to explain in as much detail as we require. Everyone we have spoken to has been polite, welcoming and extremely knowledgeable and we look forward to continuing to work together as our business grows.
  
 
       
   Sam Nagle 
 2023-05-12
 
 
  A truly fantastic accountants.  Unlike any other accountants we have had in the past.  They are 100 percent on the ball, helpful with fantastic advice.  Not just sound accountancy advice but advising the business as a whole in various areas.  Strategic quarterly reviews to really delve into the business to make sure profit margins are where they should be, and if they aren’t, they’ll look into improvements that can be made.  Nothing is too much and the phone lines are always open for advice.  Unlike most accountants their focus isn’t just on completing your annual accounts and not seeing you again for another year.  I cannot praise the team enough for all the hard work they put in! They really have shifted our focus onto the aspects of the business that we were perhaps neglecting!
  
 
       
   Steve Lincoln 
 2023-05-11
 
 
  The team at Steve Burton & Co provide a first class personal service to their customers. They support business owners through every step of the life cycle of their business, adding true value with their relationship.
  
 
       
   Toby Ishmael 
 2023-05-05
 
 
  I work closely with the team at Steven Burton & Co. to assist their clients with a range of services and I can't speak highly enough of the professionalism and care that they demonstrate for their clients.
  
 
       
   Darren Vass 
 2023-03-21
 
 
  I've worked with Steven Burton & Co for almost 4 years and I  cannot fault their service.  Dominique in particular is always available for advice and guidance whenever needed.
  
 
       
   Makala Balls 
 2022-12-11
 
 
  The team at Steven Burton are friendly, professional and really get to know their clients so their advice is tailored to suit their individual needs. Cuts through all the jargon and offer clear and timely advice. Would highly recommend.