Accounting for Start ups

Annually in the UK, more than 500 000 people start their own business. Nearly one in six of the UK workforce is running their own micro-enterprise with 90% of all new jobs being created by new single person, self-employed enterprises. There is a marked 40% increase in micro enterprises for this millennium with numbers growing by ½ million each year. Here, Mike Hickson, Director of LSA Systems, discusses the current start up landscape.

The startup market is a saturated one in the UK with only 6% going onto become larger businesses. It has become vitally important for all startups to be as cutting edge and competitive as possible, in order to stay in the game. However, besides ensuring that you are delivering the best product possible to your clients, there are many responsibilities that new businesses need to ensure that they fulfil. Legally, all businesses in the UK need to have accurate financial records and retain them for 6 years. This can be a daunting task to those developing a business for the first time, without the proper knowledge and experience, bookkeeping can be complicated and intricate.

More often than not, the cheapest and easiest way to ensure that your business is on top of their books while still keeping the time to focus on their product is through bookkeeping software such as Sage solutions accounting software. A leading business partner and developer of Sage, LSA Systems takes a look at why Sage is the best accountancy software for startups in the UK. Mike-Hickson-Headshot2

Cost Effective 

When delving into the world of startups, the stakes are high and there is never enough capital in the bank. Most CEO’s of startups go months and more often than not, years without drawing a salary. Therefore, the aim of the game becomes producing the best product in the most cost effective way. With Sage, startups allow themselves more time to focus on their product whilst still being able to keep their finger on the metaphorical financial pulse of the business.  As outlined by Simon Gunn, a chartered accountant, the requirements of any accounts system is to keep track of income and expenditure, telling the business owner how their business is doing financially. Sage allows business owners to understand the financial transactions and records in detail, which becomes very useful as the business starts to grow in clients and turnover.

Through LSA Systems, startups are also allowed the opportunity to rent out the Sage Software, thus saving money on purchasing the full package. For many startups, spending hundreds of pounds on software that they have not used before is a gamble, and so they pay more to hire an accountant to do their bookkeeping. A qualified accountant will charge in excess of £40 an hour doing as much as you can do yourself with the Sage accounting software. Thus, by renting out the Sage software, startups are allowed the opportunity to try out the software, save money and maintain their financial records.

Setup, Training and Support

Unlike many other accounting software packages, LSA will install and setup the Sage software on your computer system as well as give yourself and your staff Sage training before letting you lose into the world of bookkeeping. As a trusted partner and developer of Sage software, LSA allows your accounting software to be tailored to the needs of your business, allowing for a bespoke accounting package. Training can be conducted on a one-on-one basis or in a classroom setting and at a premises of your choice. Training is conducted by accredited consultants who have experience using the software in a ‘real-life’ situation, thus they know and understand the intricacies of the software and how best it can be used on a day to day basis.

In addition to training, LSA also offers clients a team of support staff to assist in solving any issues that you may have. As a Sage business partner, LSA Systems has access to the relevant people in the Sage software team, thus allowing for a fast turnaround time with all queries.

Flexibility And Customization 

Due to the customizable abilities of the Sage software through LSA, startups have the ability to have customizable accounting packages that grow with their business. With easy to upgrade features, there is no need for a mass move of financial data when a bigger and more advanced software accounting programme is needed. For many CEO’s of startups, your hopes and dreams are on growing your business and you want an accounting package that can accommodate that.

Becoming one of the 6% of UK startups who develop into a successful company is a tough task. As your business grows, you need to manage and keep track of your financial records, ensuring that you are always aware of where your business is going.

 

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David Dungay

Editor - Comms Business Magazine