At the start of 2018, half a million companies in the UK started the year in what would be considered as ‘financial distress’ – a figure which is 10% higher than that of the start of the previous year, highlighting one of the many risks associated with starting a new businesses.

When setting up a business, it is vital to have people on-board who are qualified and able cover the wide range of business functions that your new company requires. One fundamental business requirement that new entrepreneurs cannot afford to is accounting, as it is crucial to understand the functions of the financial side of your business. Working with Lima Accountancy will ensure that your company doesn’t break any laws by falling into any tax arrears, as well as delivering tax payments and returns on time.

Failing to set a realistic and well-considered budget may see you unable to re-pay lenders or suppliers, as well of the risk of financial penalties – which will continue to affect your start-up company further down the line.

A qualified accountant can not only keep abreast of all your finances, but can also assist in key decision making to help maximise profits. The right business accountant will also outline a critical and practical business plan to make sure the business moves in the right direction at the right speed.

It is very common for new companies to face cash flow issues in their infancy, but a good accountant will minimise the issues as well as suggesting any issues that can lessen the problems in the future.

Most importantly, in the case of insolvency, your accountant would work with the insolvency practitioner to provide information on the financial problems that the company have faced, as well as coming up with a solution to help the company be rescued and revitalised.

For more information on our accountancy services, call Lima Accountancy today on 0113 844 0402.