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Finance and Bookkeeping

Don't expect to make a profit straight away. Setting up costs and teething troubles mean that your income is unlikely to exceed your outgoings at first. Most new businesses experience difficulties in their first year as earnings and outgoings settle down into a pattern that can be forecast. One way of avoiding these early financial difficulties is to start a business part time while still employed, and take the plunge when you can risk quitting your job.

Banks

Can be helpful and most will offer free banking for the first year or two and advice on how to plan your business  and organise your accounts.

Cash flow

Can be a major problem even if your business is successful. Getting your clients to pay promptly is crucial as you can end up in debt because lots of people owe you money.

You must keep accurate accounts because this is the evidence upon which the Inland Revenue will decide your tax bill. Record your telephone, postage, transport, office supplies, accommodation and other costs carefully. You can fill in your tax return yourself, but employing an accountant may save you having to pay more tax than necessary.

 

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