Accounting for Start-ups
Starting a business is an exciting time, mostly because it brings independence, uncapped earning and higher job satisfaction, in addition to the freedom that comes from being your own boss.
However, it can also be intimidating and unprofitable if you do not have a solid grasp of the fundamentals in financial and fiscal issues involved in running your own business. It is essential for start-ups to draw a fiscal strategy and build a solid accounting foundation, which is why we can support you with expert advice and guidance from the outset.
We can help you:
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- Decide on the best business structure – sole trader, partnership or limited company
- Drawing up a business plan including cash flow projections, budgets and trading forecasts
- Assess your requirements for finance, advise you on the best sources of finance and draw up the required proposals
- Establish an effective and positive working relationship with your bank
- Complete registration procedures with Companies House and HMRC
- Deal with company secretarial matters
Having a Finance Team adds value to your company in numerous ways. Start-ups and micro businesses desire to grow and move forward quickly. This requires a solid finance foundation from the outset which sometimes means outsourcing a full-stack finance team to provide strategic advice and carry out everyday accounting to keep the finances on track.
However, most business owners think hiring a full time finance team for start-ups can be an unjustifiable cost. This may create a hindrance to the business growth and sometimes result in the downfall of the business. At MYT Accounts we offer a full stack finance service to bridge this gap. Our finance team can help you in long term financial planning in addition to dealing with financial problems and challenges to the growth of your business.
Management accounts are periodic financial reports produced for the businesses, which are absolutely essential to your business as a tool to see your progress and monitor your performance. There are situations where, some financial institutions may need to see your management accounts when you apply for financial assistance.
Most of the small businesses do not pay attention to this great tool to monitor their progress. We advise businesses to track their true financial performance from day one and we assist in preparing their management accounts and variance reporting. We believe this tool will also give them a direction to grow their business.
The Enterprise Investment Scheme (EIS) is one of government venture capital schemes to help smaller higher-risk trading companies to raise finance, by offering a range of tax relief to investors who purchase new shares in those companies. EIS allows you to raise up to £5 million in any 12 month period as part of the scheme, and a maximum of £12 million across your company’s lifetime.
We have a specialist team who are experienced and have extensive knowledge in EIS. MYT Accounts:
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- Can help you apply for Advance Assurance from HMRC, which you can show to your potential investors that your proposed investment may qualify for the scheme
- Can help you with your Business Plan
- Can assist you with the EIS compliance
The Enterprise Management Incentive (EMI) is a tax-advantaged share option scheme designed for smaller companies and start-ups. The scheme enables companies to attract and retain key employees by rewarding them with equity participation in the business.
The share option scheme allows companies to grant options (i.e. rights to acquire shares) to qualifying employees on a highly tax efficient basis for both the employer and participating employees. This is not a straightforward process as it sounds. Here at MYT accounts our specialist team can assist you to move forward in this path by:
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- Registering all new Employment Related Securities (ERS) schemes with HMRC (including one-off awards or gifts of shares) and get the clearance
- Informing HMRC about a grant of an EMI share option by submitting an EMI notification within 92 days of the date of the grant
- Submitting an ERS return for each registered ERS scheme every year, even if there’s no reportable event.
- Assist you in getting the valuation of the company