Timing & Planning
When To Start A Business
There is no restriction on when you can or cannot start a business and for most people it is circumstances or opportunities that make this decision. You may be a budding entrepreneur (like you see on Dragons’ Den) or have been made redundant and want to use your skills through self-employment. Perhaps you do freelance work and have been offered a contract which means you need to set up a limited company.
However, there are certain obligations that are almost immediately thrust upon anyone starting a business and it is easy to fall foul of these so it is important to seek advice early.
It is also important to avoid wasting time, money and resources by avoiding making mistakes. Deciding the best format for your business at an early stage will help you get it all set up for maximum efficiency as early as possible.
When To Prepare Accounts
Self-employed individuals (sole traders) can choose any date in the year to which to prepare Accounts, but the date that is chosen will affect how the income is taxed, so it is an important decision. Talk to Astons Accountants about when the first period end should fall so that it is clear in your head.
The date chosen can be changed at a later date, if necessary, but, again, this can have an impact on how income is taxed so such decisions need to be taken carefully and thoughtfully.
Companies have certain conditions and timescales thrust upon them but they can be manipulated, if necessary, within certain parameters, to suit individual needs. It is important you have the “year end/accounting reference date” set at the right date for you – it can mean you choose a time of year that suits you, it can make the taxes easier to understand and it can affect when tax payments are due. It is possible to ask Astons Accountants to change the period end as soon as possible after forming a company, so that you have it all set up exactly as you want it, right from the start.
If you are thinking “I want to start my own business”, the first big decision is which type of business would suit you best.