In terms of startup finance, perhaps the most popular question that I am ever asked is whether or not an accountant is essential to maintain your books and submit tax returns and so forth. Firstly, the answer I give usually always depends on the circumstances of the business owner. For instance, I would ask questions such as; how long they have been in business, what sort of industry they are in and how much revenue, roughly, their business is turning over. Since this is a question quite regularly asked, here are three of the most frequently asked startup accounting queries:

How important is maintaining up to date records?

Extremely! In order to comply with the legislation laid out by HMRC (for the UK) and the IRS (in the US) businesses must keep regular and accurate business records. Complying with the law aside, how do you intend on keeping account of how much money you are making without proper accounting methods in place? It’s a no brainer that regular accounting is a must for ALL business owners.

Do I need an accountant or can I do it myself?

It’s quite rare for an entrepreneur to have an accounting or finance background at their disposal but for those that do, lucky you, the chances are you’re going to save a great deal of money! - For those of us who haven’t the matter of bookkeeping and maintaining accounts is a serious one that will need adequate provisions planned.

Do I need an accountant straight away?

This depends entirely on your circumstances and the industry your business operates in. Certainly if you have some important decisions to make with regard to the structure and tax operation efficiency it wouldn’t do any harm at all to seek professional advice in the form of an accountant or legal advisor. As an entrepreneur myself I went a long time without an accountant and therefore saved myself hundreds of pounds in fees because of it. That isn’t to say that you will be the same, it depends entirely on your circumstances but the fact is you don’t always need an accountant straight away.